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1 1 INTRODUCTION TO INTEGRATED MARKETING COMMUNICATIONS Unit Structure: 1.1 Objectives 1.2 Introduction 1.3 Definition and Meaning of Integrated Marketing Communication (IMC) 1.4 Evolution of IMC 1.5 Key Features of IMC 1.6 Types of IMC 1.7 Summary 1.8 Test Your Knowledge 1.9 Questions 1.10 Answers 1.11 References 1.1 OBJECTIVES • To understand the concept of Integrated Marketing Communications (IMC). • To understand the evolution of Integrated Marketing Communications (IMC) • To understand the key features of Integrated Marketing Communications (IMC). • To understand the types of Integrated Marketing Communications (IMC). 1.2 INTRODUCTION IMC (Integrated Marketing Communication) is not a new concept, having first appeared in the 1980s. Since then, IMC has grown to become one of the most powerful managerial systems, and its significance has expanded all across the world. Initially, IMC was thought to be a simple managerial effort, such as aligning and coordinating messages across four areas: sales promotion, direct marketing communications (DM), public relations (PR), and advertising. A company's primary purpose is to provide a coherent and munotes.in
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2 Integrated Marketing Communiucation integrated whole that will coordinate and influence consumers' communication and purchasing actions. IMC is a strategic planning process that determines the most consistent message and exposes it to the target audience using a synergy of marketing communication tools and media. To put it simply, IMC is a strategic method of using marketing communication instruments and media in such a way that they complement and reinforce one another in order to decide the appropriate message for the target audience. This is an extremely significant topic since it is critical for a brand or organization to have a positive and consistent image, which IMC may provide. Organizations who apply it appropriately will have a consistent brand image, differentiated messages, improved marketing precision, and high-quality consistent service. 1.3 DEFINITION AND MEANING OF INTEGRATED MARKETING COMMUNICATION ( IMC) Integrated Marketing Communication (IMC) is a management concept that aims to make all components of marketing communication, such as advertising, sales promotion, public relations, and direct marketing, work as a single force rather than separately. It guarantees that all marketing communications and messages are precisely coordinated. For example, the slogan "Daag Ache Hai" is used by the brand Surf Excel. The advertisements appear in newspapers, magazines, and on billboards. The brand also broadcasts the advertisements on radio, the internet, and so forth. The phrase is used consistently throughout the brand's communication. IMC's success is dependent on consistency. • Advertising, direct marketing, sales promotion, and public relations are all examples of marketing communications. • IMC manages all promotional and other marketing operations that connect with a company's consumers and other stakeholders via online and offline media. • Coordination or integration is crucial here. What is the significance of integration? • Consistency, else confusion. • Clarity, else confusion. • Impact, because different tools have varied strengths; consequently, IMC tools must be blended. munotes.in
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Communications Advertising, Direct Marketing, Sales Promotion, and Public Relations must all be considered together for the following reasons: All communicate; all seek to persuade; persuasion is the goal; and should never depart from a brand's perspective. All of these communication tools perform better when used in tandem rather than separately. Their whole is greater than the sum of their parts if they communicate consistently with one voice all of the time, every time. When it comes to the concept of IMC, there are numerous definitions. Even while IMC has become an important aspect of many people's communication strategies, differences in definitions can be confusing to the reader, preventing IMC from being fully developed and understood. According to The American Marketing Association : "Integrated Marketing Communication (IMC) is a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time". The American Association of Advertising Agencies (AAAA), defines it as: “A concept of marketing communication planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines, e.g. general advertising, direct response, sales promotion and public relations – and combines these disciplines to provide clarity, consistency and maximum communication impact.” According to Kotler and Armstrong, Integrated Marketing Communications (IMC) is a concept in which a: “Company carefully integrates and coordinates its many communication channels—mass media advertising, personal selling, sales promotion, public relations, direct marketing, packaging, and others—to deliver a clear, consistent, and compelling message about the organization and its products.” According to different authors IMC is defined as follows: According to Schultz definition(1991)- “The process of managing all sources of information about a product/service to which a customer or prospect is exposed and which, behaviorally, moves the customer toward a sale and maintains customer loyalty” Pickton & Broderick- “IMC is bringing together of all marketing communications activities” Kliatchko- “IMC is the concept and process of strategically managing audience-focused, channel-centred and results-driven brand communication programmes over time.” munotes.in
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4 Integrated Marketing Communiucation Percy- “IMC is planning a systematic way in order to determine the most effective and consistent message for appropriate target audiences.” Floor & Van Raaij- “IMC is a process where all messages and methods are geared to each other in such way that they complement and reinforce each other, and that added value is the result”. 1.4 EVOLUTION OF IMC The concept of Integrated Marketing Communications was initially introduced in 1989. Since then, the field of marketing communications has transformed from being predominantly advertising-driven. Over the years, Integrated Marketing Communications (IMC) has experienced notable development in response to evolving consumer behaviors and advancements in technology. In the beginning, marketing efforts concentrated on traditional mass media outlets such as television, radio, and print. However, as new media platforms emerged and media became more fragmented, marketers recognized the necessity of integrating their messages across multiple channels to successfully engage their desired audience. This marked the inception of IMC's evolutionary journey. As the marketing environment evolved, there was a trend away from mass marketing and towards customized marketing. Data analytics and market research advancements enabled marketers to segment their audiences and adapt messaging accordingly. IMC was important in this move by synchronizing messages across numerous targeted media, resulting in a consistent brand experience. The evolution of IMC took a significant leap forward with the advent of digital marketing and the internet. Marketers began incorporating various digital channels such as websites, email marketing, social media, and mobile apps into their IMC strategies. This integration opened up new possibilities for interactive and personalized communication, allowing for enhanced customer engagement and the establishment of two-way communication channels. As the focus on building and nurturing customer relationships grew, IMC shifted its attention towards Customer Relationship Management (CRM). Marketers started integrating customer data and insights into their IMC strategies to personalize communication, deliver relevant messages, and ensure consistent brand experiences throughout the customer journey. The adoption of CRM systems and tools played a crucial role in facilitating this customer-centric approach. With the integration of offline and online channels becoming ingrained in consumers' daily lives, IMC underwent a transformation to seamlessly blend the two. Offline channels were linked with online platforms using methods like QR codes, custom URLs, or social media integration. This cohesive integration ensured consistent messaging across various touch-points and enabled smooth transitions for consumers between offline and online experiences. munotes.in
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Communications The evolution of IMC was further fueled by the adoption of marketing automation. Marketers capitalized on marketing automation platforms to automate and streamline communication across multiple channels, segment audiences, and deliver targeted messages at a larger scale. This utilization of marketing automation significantly enhanced the efficiency and effectiveness of IMC campaigns. In recent times, IMC has placed increased emphasis on creating a comprehensive customer experience. This approach recognizes that customers interact with a brand through diverse touch-points, both online and offline. To deliver a unified and exceptional brand experience, IMC now incorporates customer journey mapping, omni-channel marketing, and a deep understanding of customer needs and preferences. Overall, the evolution of IMC has been influenced by factors such as media fragmentation, the rise of digital marketing, the focus on customer relationships, the integration of offline and online channels, the adoption of marketing automation, and the pursuit of a holistic customer experience. These advancements continue to shape and refine the strategies and approaches used in IMC today. 1.5 KEY FEATURES OF INTEGRATED MARKETING COMMUNICATION (IMC) Here are some key features of Integrated Marketing Communications: 1. Consistency: IMC prioritizes consistent messaging across all communication channels, including advertising, public relations, sales promotion, direct marketing, and digital marketing. To create a powerful and recognizable brand image, the brand message, values, and identity should all be consistent 2. Multiple Channels: To effectively reach the target audience, IMC employs a variety of communication methods. Traditional media such as television, radio, print, and outdoor advertising can be included, as well as digital channels like as websites, social media, email marketing, mobile apps, and more. The goal is to guarantee that the brand message reaches the target audience through the most relevant and powerful channels. 3. Integration: IMC aims to integrate many marketing communication elements so that they can operate together synergistically. To create a coherent and cohesive brand experience, the various channels and tools are coordinated and synchronized. Coordinating advertising campaigns with social media promotions, integrating public relations efforts with sales promotions, and providing consistent messaging across several touch-points are all examples of integration. 4. Targeted Approach: The goal of IMC is to identify the target audience and adjust the communication strategy to their preferences, needs, and behaviors. IMC enables marketers to send relevant and munotes.in
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6 Integrated Marketing Communiucation personalized messages over many channels, boosting the odds of connecting with and engaging the intended audience by leveraging market research and consumer insights. 5. Two-Way Communication: IMC promotes two-way communication between the brand and its target audience. This includes actively listening to consumer feedback, participating in social media conversations, replying to enquiries and comments, and allowing customers to contribute opinion and participate in brand activities. This strategy increases engagement, relationships, and client loyalty. 6. Measurable Results: To assess the efficacy of marketing communication initiatives, IMC emphasizes the use of data and analytics. Marketers can measure the impact of their integrated campaigns and make data-driven decisions to optimize future plans by tracking and analyzing key performance indicators (KPIs) including reach, engagement, conversions, and sales. 7. Long-Term Perspective: IMC views brand equity and customer relationships in the long term. It recognizes that consistent and unified communication throughout time is critical for developing brand trust, loyalty, and advocacy. IMC tactics frequently include constructing a brand narrative, storytelling, and a strong brand identity that resonates with the target audience. 8. Use the relevant media channels: That is, carefully select the tools that are most appropriate for the communication goal at hand and relevant to the target audience of your brand. IMC practitioners must be open to utilize all types of touch points, or contacts, as viable message delivery channels. The main quality of this IMC element is that it represents brand communicators' openness to employ any communication channels that are acceptable for reaching the target audience. 9. Achieve communication synergy: That is, speak in a single tone of voice. The demand that a brand's various communication aspects all try to deliver the same message and transmit that message consistently across multiple message channels, or points of contact, is inherent in the idea and practice of IMC. Message and media coordination is crucial for developing a strong and cohesive brand image and driving customers to action. The single-voice principle, in general, entails selecting a specific positioning statement for a brand. 10. Influence target market’s behavior: Marketing communications must do more than raise brand awareness or improve consumer perceptions of the brand. In other words, the goal is to compel individuals to act. 11. Build customer relationships: A relationship is an ongoing connection that exists between a company and its customers. Successful customer-brand connections result in recurrent purchases munotes.in
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Communications and sometimes even brand loyalty. The use of frequency, loyalty, or ambassador programmes is one technique to establish brand/customer relationships. Relationships are also nurtured by generating brand experiences, such as unique events, that leave a favorable and lasting impression. 12. Cost-effective: IMC helps in the most effective use of resources. The strategic communication mix helps in reducing the duplication of images, photos, and other media. Using a single agency for all communications reduces agency fees, and even if numerous agencies are used, time is saved when meetings bring all the agencies together - for briefings, creative sessions, tactical or strategic planning. This reduces effort and, as a result, stress levels, which is one of the many advantages of IMC. By coordinating and combining numerous communication channels and platforms, Integrated Marketing Communications attempts to provide a coherent and seamless brand experience. IMC maximizes the impact of marketing initiatives and promotes overall brand positioning by maintaining consistency, targeting the proper audience, promoting two-way communication, and exploiting data. 1.6 TYPES OF INTEGRATED MARKETING COMMUNICATION (IMC) Integrated Marketing Communications (IMC) encompasses various types of communication channels and tools that are strategically integrated to deliver a consistent brand message. Here are some common types of IMC components: 1. Advertising: Advertising is the paid distribution of promotional messages via various media channels such as television, radio, print publications, outdoor billboards, online banners, and social media adverts. To maintain continuity and promote the overall brand message, IMC ensures that advertising messages are synchronized with other communication channels. 2. Public Relations (PR): The primary goal of public relations efforts is to manage and maintain a positive public image for a business or organization. Media relations, press releases, events, sponsorships, and community outreach are all part of this. To promote consistent messaging and a united brand image, IMC blends PR activities with other marketing communication channels. 3. Sales Promotion: Sales promotions are designed to increase immediate sales or to entice clients to make a purchase. Discounts, coupons, sweepstakes, giveaways, loyalty programmes, and point-of-purchase displays are some examples. IMC makes certain that sales promotion initiatives are consistent with the overall brand strategy and messaging. munotes.in
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8 Integrated Marketing Communiucation 4. Direct Marketing: Direct marketing entails engaging directly with individual clients by personalized communications sent via mail, email, or SMS. Direct mail campaigns, email marketing, telemarketing, and database marketing are examples of such activities. IMC integrates direct marketing efforts to ensure brand consistency and alignment with other communication channels. 5. Digital Marketing: Digital marketing refers to marketing activities carried out through online channels like as websites, search engine marketing (SEM), search engine optimization (SEO), social media marketing, content marketing, email marketing, influencer marketing, and mobile marketing. IMC blends digital marketing efforts with other offline channels to deliver a unified brand experience across all touch-points. 6. Social Media Marketing: Social media marketing focuses on engaging with and reaching the target audience through social media platforms. It covers tasks like developing and publishing content, communicating with followers, operating social media advertising campaigns, and utilizing user-generated material. IMC makes certain that social media marketing initiatives are consistent with overall brand strategy and messaging. 7. Content Marketing: To attract and engage a target audience, content marketing entails generating and delivering valuable, relevant, and consistent information. Blog posts, articles, videos, info-graphics, podcasts, and whitepapers are all included. IMC integrates content marketing activities to ensure that material is consistent with the overall brand message and distributed through the relevant channels. 8. Sponsorships and Partnerships: Sponsorships and partnerships entail a brand linking itself with an event, organization, or individual in order to leverage their audience and increase brand visibility. IMC incorporates sponsorships and partnerships to ensure that they are aligned with other communication channels and connect with the brand strategy and messaging. 9. Personal Selling: A sales professional and a potential customer converse one-on-one during personal selling. Sales presentations, demonstrations, and relationship development are all part of it. IMC ensures that personal selling activities are consistent with the broader brand strategy and messaging, and that they are connected with other channels of communication. 10. Experiential Marketing: Experiential marketing focuses on providing consumers with memorable and engaging brand experiences. Events, activations, product demonstrations, and immersive brand experiences are all part of it. IMC incorporates experiential marketing activities to fit with brand strategy and message, as well as to enhance the entire brand experience. munotes.in
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Communications These are only a few examples of IMC components; the exact mix and focus of these components will vary depending on the brand, target demographic, industry, and marketing objectives. The objective is to combine and organize these components intelligently in order to produce a cohesive and consistent brand message across multiple media. 1.7 SUMMARY Integrated Marketing Communication (IMC) is a strategic approach that combines various communication tools and channels to deliver a consistent and unified message to target audiences. IMC aims to create a seamless and synergistic brand experience across different media platforms. It involves the integration of advertising, public relations, direct marketing, sales promotion, and digital marketing efforts to achieve marketing objectives. The features of IMC include message consistency, audience-centric communication, coordination of marketing activities, and the use of multiple media channels. Over time, IMC has evolved from fragmented and departed marketing approaches to a more holistic and integrated approach, driven by advancements in technology and changing consumer behavior. Types of IMC include print media, broadcast media, outdoor or out-of-home media, and digital media. Each type offers unique advantages and characteristics that can be leveraged to effectively reach and engage target audiences in a comprehensive and cohesive manner. 1.8 TEST YOUR KNOWLEDGE 1. Full form of IMC is______. a) Integrated marketing Communication b) Intelligence marketing communication c) Integrated Mix communication d) Interested Marketing communication 2. IMC is an element of ______. a) Price b) Place c) Marketing d) Marketing Research 3. What is integrated marketing communications (IMC)? a) The integration of advertising, personal selling, sales promotion, and public relations, direct and online marketing tools to achieve marketing objectives b) Mixing advertising and sales promotions c) Direct communication with a healthy mix of diverse customers to study their purchasing habits munotes.in
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10 Integrated Marketing Communiucation d) Close communications between production managers and marketing managers 4. Which of the following is NOT a key feature of IMC? a) The customer represents the starting point for all marketing communications activities. b) Brand managers and their agencies should be amenable to using various marketing communication tools. c) Multiple messages must speak with a single voice. d) the ultimate goal is to influence brand awareness and enhance consumer attitudes toward the brand 5. The ultimate goal of integrated marketing communications is to_______________ a) increase brand awareness b) affect the behavior of the targeted audience c) learn how to outsell the competition d) lower production costs 1.9 ANSWERS 1) a 2) c 3) a 4) d 5) b 1.10 QUESTIONS Q.1 Write definition and meaning of Integrated Marketing Communication (IMC)? Explain the key features of IMC. Q.2 Explain the types of Integrated Marketing Communication (IMC). Q.3 Write a short note of Evolution of IMC. 1.11 REFERENCES • Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing management: an Asian perspective. Harlow: Pearson. • Saxena, R. (2005). Marketing management. Tata McGraw-Hill Education. • Karunakaran, K. (2008). Marketing management. Himalaya Publishing House. • Schultz, D. E. (1992). Integrated marketing communications. Journal of Promotion Management, 1(1), 99-104. munotes.in
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Communications • Percy, L. (2023). Strategic integrated marketing communications. Taylor & Francis. • Juska, J. M. (2021). Integrated marketing communication: advertising and promotion in a digital world. Routledge. • Broderick, A., & Pickton, D. (2005). Integrated marketing communications. Pearson Education UK. munotes.in
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12 Integrated Marketing Communiucation 2 ADVERTISING AND TYPES OF MEDIA Unit Structure: 2.1 Objectives 2.2 Introduction 2.3 Definition and Meaning of Advertising 2.4 Objectives of Advertising 2.5 Importance of Advertising 2.6 Definition and Meaning of Media 2.7 Types of Media 2.8 Summary 2.9 Test Your Knowledge 2.10 Answers 2.11 Questions 2.12 References 2.1 OBJECTIVES • To study the concept of advertising. • To understand the objectives of advertising. • To understand the importance of advertising. • To study the concept of media. • To study the different types of media. 2.2 INTRODUCTION In today's environment, 'Advertisement' has an impact on all of us. Almost every act is guided and determined by advertisements, from buying groceries to children's study materials, finding a vacation spot to watching a movie, choosing a restaurant for dinner to booking a banquet hall for special events, and searching educational institutions to hunting for a company to find jobs. 2.3 DEFINITION AND MEANING OF ADVERTISING Advertisement (ad) is a simple and successful way to market products, services, and ideas. It is a paid kind of non-personal communication in which potential consumers can access corporate information. munotes.in
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Types of Media Advertisement comes from the Latin word "Advertere," which means "to turn the minds of... towards..." To a large extent, advertising encourages and supports the sale of items, services, and ideas. The most intriguing aspect of a commercial is that it combines factual information with compelling emotional appeal. As a result, no firm can thrive without adequate advertising.
• Advertising is "a set of actions aimed at presenting - oral or visual - indirect (impersonal) message about a product, service or company by any identified supporter (payer)". • Advertising “is a communication technique that involves running a complex persuasive process, for whose realizations are used a number of specific tools, able to cause psychological pressure on the concerned public”. • The initiator of the advertising communication actions is the sponsor, who in order to achieve communication objectives, wants to send an impersonal message to a well-defined audience regarding the enterprise, its products or services." • Advertising is defined as "the paid and media intermediated attempt to convince" or "a form of structured and impersonal communication, composed from information, usually persuasive in nature, regarding the products, in the broad sense, paid by an identifiable sponsor and transmitted through various media". Starting from descriptive analysis of advertising, we can highlight a number of its features: 1. Advertising is primarily a type of impersonal communication, with accompanying messaging sent by enormously large addressable media (the mass media). According to several academics, the lack of rapid input from receivers contributes to its impersonal aspect. 2. Advertising is inherently persuasive. Those that use advertising want to persuade the public to buy a product, service, concept, etc. 3. A sponsor pays for advertising. According to some experts, this characteristic is even a condition that clearly differentiates advertising
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14 Integrated Marketing Communiucation from other forms of commercial communication. Publicity, for example, does not fit into any of the preceding criteria. 4. This type of marketing communication includes both tangible and intangible objects (services, ideas). These are not all of the advertising features, but they provide the basic outline for differentiation from other elements of marketing communication. 2.4 OBJECTIVES OF ADVERTISING The fundamental idea behind advertisement is to increase the business by selling goods/services. Besides, there are many other objectives of advertisement, significant of them are − • To promote newly launched products among the potential customers. • To promote personal selling program. • To create awareness among maximum people about your business in a short period of time. • To enter national or even international market and motivate new group of customers. • To enhance the goodwill and build credibility among the customers by promising to provide better quality of products and services. 2.5 IMPORTANCE OF ADVERTISING Advertising has become an essential marketing activity in the modern era of large scale production and serve competition in the market. It performs the following functions: 1. Promotion of Sales: It promotes the sale of goods and services by informing and convincing consumers to purchase them. A good advertising plan can help you gain new clients in both the national and international markets. 2. Introduction of New Product: It facilitates the market introduction of innovative items. Advertising allows a company to introduce itself and its goods to the general audience. A new business cannot make an impression on prospective clients without the assistance of advertising. Advertising allows for rapid market exposure. 3. Creation of Good Public Image: It improves the advertiser's reputation. Advertising allows a company to communicate its accomplishments in order to meet the needs of its customers. This boosts the firm's goodwill and reputation, which is required to compete in the market. munotes.in
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Types of Media 4. Mass Production: Advertising makes large-scale production possible. Advertising supports the manufacture of goods on a huge scale since the business firm understands that with the help of advertising, it will be able to sell on a large scale. The economical utilization of numerous production parameters minimizes the cost of production per unit in mass production. 5. Research: Advertising encourages research and development. Advertising has evolved into a highly competitive marketing activity. Every company uses advertising to differentiate its product from the alternatives on the market. This drives every organization to conduct more and more research in order to discover new items and their new applications. If a company does not invest in research and development, it will be forced out of the market in the near future. 6. Education of People: Advertising informs consumers about new products and their applications. People can broaden their knowledge by hearing an advertisement message about the utility of a product. Advertising has aided people in adopting new lifestyles and breaking old habits. It has made significant contributions to the improvement of the society's standard of living. 7. Support to Press: Advertising is a significant source of revenue for publishers and periodicals. It allows them to boost the circulation of their newspaper by offering it at a lesser cost. People profit as well because they can obtain publications at a lower cost. Advertising is another source of money for television networks. For example, Doordarshan and Zed TV put advertisements before, during, and after various programmes and make millions of rupees through advertisements. Such revenue could be utilized to improve programming quality and expand coverage. 2.6 DEFINITION AND MEANING OF MEDIA The many channels and platforms through which marketers send their brand messaging to the target audience are referred to as media in the context of Integrated Marketing Communications (IMC). The media plays an important part in IMC since it serves as a vehicle for communication as well as a means of reaching and engaging with the target recipients of the marketing message. IMC media might include both traditional and digital platforms. Television, radio, newspapers, magazines, outdoor billboards, and direct mail are examples of traditional media. These channels have long been utilized for mass communication and have a broad reach, allowing marketers to reach a large number of people. munotes.in
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16 Integrated Marketing Communiucation Digital media, on the other hand, refers to the online platforms and channels that have grown in popularity as the internet and technology have grown. Websites, search engines, social networking platforms, email, mobile apps, online display advertising, and streaming platforms are all examples. Digital media enables marketers to reach out to specific segments and individuals based on their interests, demographics, and behaviours. In IMC, media selection is an important decision that is influenced by criteria such as target audience, marketing objectives, budget, message complexity, and desired reach and frequency. Marketers must carefully analyze the features and effectiveness of various media channels to ensure that their brand message reaches the correct audience in the most effective way. Furthermore, media planning and buying are critical components of IMC, encompassing actions like as defining the best media mix, deciding the best timing and frequency of commercials, negotiating media rates and placements, and monitoring the performance of media campaigns. The definition of media in IMC goes beyond the simple dissemination of communications. It involves the strategic planning, selection, and use of media channels in order to establish harmony and consistency in brand communication across many touch-points. To provide a consistent and cohesive brand experience, effective media management in IMC entails combining media activities with other communication components like as advertising, public relations, sales promotion, and direct marketing. Ultimately, media in IMC acts as the conduit for delivering brand messages to the target audience, making it a crucial element in the overall marketing communication strategy. 2.7 TYPES OF MEDIA Media can be classified into four categories. • Print Media ( Newspapers, Magazines) • Broadcast Media ( TV, Radio) • Outdoor or Out of Home ( OOH) Media (Billboards, Transit Advertising) • Internet Print Media: Print media is a historic form of media in which information or content is distributed through printed materials. It includes a wide range of printed items such as newspapers, periodicals, brochures, flyers, newsletters, catalogues, and other printed materials. Print media has long been a popular and powerful tool for advertising and communication. 1. Newspaper: A newspaper is a daily periodical that contains news, opinions, and feature articles on current events. The importance of munotes.in
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Types of Media newspapers is evident from the fact that most educated individuals read newspapers these days. There are bi-weekly and weekly newspapers in addition to daily newspapers. Newspapers reach practically every location and are read by individuals of all ages. As a result, newspapers can be employed as an effective advertising medium. An advertiser must evaluate the strength of circulation, the type of readers it serves, the geographical region in which it is popular, and the cost of space when choosing a newspaper for this reason. Newspaper advertising offers numerous benefits. For starters, a newspaper has a big readership, which means that a single advertisement in a newspaper can reach a large number of people. Second, because a newspaper is issued daily, ongoing advertising is possible. An advertiser has the option of repeating his advertisement daily or weekly. Third, newspapers offer advertising flexibility in the sense that campaigns can be started and discontinued swiftly. For this purpose, one day's notice is adequate. Newspaper advertising has its own set of constraints. To begin with, the lifespan of a newspaper advertisement is extremely short. Furthermore, people only spent a little portion of their day reading the newspaper. As a result, adverts are likely to catch the reader's attention only briefly. Second, newspaper advertisements are only effective when the individuals being communicated with are educated. Third, because newspapers are produced in black and white, they cannot be utilized for colored adverts. As a result, they may be unable to assist clients in recognizing the product at the point of purchase. 2. Magazines: Magazines or periodicals serve as an excellent advertising medium when there is a need for high-quality printing and vibrant colors. By targeting specific audiences, magazine advertisements help avoid unnecessary expenses on advertising. Specialized magazines or journals are available, catering to specific customer segments, making them an effective means of conveying messages to the desired audience. Magazine advertisements capture greater attention from readers, as they are read carefully and at a leisurely pace. Furthermore, magazine advertisements have a longer lifespan. Magazines tend to be preserved for extended periods and are revisited multiple times. The use of color in magazine advertisements helps create a favorable impression of the advertised product and allows for the accurate portrayal of the product's appearance, aiding customer identification at the point of purchase. munotes.in
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18 Integrated Marketing Communiucation However, magazine advertisements do have some drawbacks. They require advanced preparation and submission, leaving limited flexibility for last-minute changes. Magazine advertisements are generally more expensive than newspaper advertisements due to their smaller circulation. The limited reach of magazines is another disadvantage of this form of advertising. Broadcast Media: Broadcast media is the electronic delivery of audio or video content to a large audience. It entails the distribution of information, entertainment, news, and advertisements via television and radio channels. Broadcast media has long been a popular and important public communication and advertising medium. 1. Television (TV): Television broadcasting encompasses the transmission of audiovisual content to viewers via television networks or cable/satellite providers. It presents a potent and influential medium for advertisers to connect with a wide-ranging audience. Television commercials provide an opportunity for captivating visual narratives, product demonstrations, and the ability to evoke emotions. The advantage of television advertising lies in its ability to merge sight, sound, and motion, captivating viewers and leaving a lasting impression of the brand. 2. Radio: Radio broadcasting serves as a means of delivering audio content to listeners via radio stations. It offers a distinctive approach to reach a wide audience, particularly during activities like commuting when visual engagement may be restricted. Radio advertisements have the ability to utilize sound, voice-overs, jingles, and memorable phrases to establish brand recognition and foster an emotional bond with listeners. Additionally, radio proves effective for localized targeting since stations often cater to specific regions or demographics. Outdoor or Out of Home (OOH) Media: Outdoor or out-of-home (OOH) media refers to advertisements and promotional messages placed in public places in order to reach a large audience who are not at home. It entails displaying brand messages in physical sites and structures such as billboards, transit advertisements, street furniture, and other signage. Because of its planned placement and great visibility, out-of-home (OOH) media provides distinct advantages in Integrated Marketing Communications (IMC). 1. Billboards: Billboards are enormous advertisements that are placed along roadways, highways, or in densely populated regions. They have a wide range of visibility and attract the attention of cars, pedestrians, and commuters. Billboards provide plenty of space for creative imagery, powerful messaging, and the ease of conveying brand awareness or promoting special campaigns. munotes.in
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Types of Media 2. Transit Advertising: Transit advertising is the placement of advertisements on public transit vehicles, stations, or terminals. This includes bus advertisements, tube advertisements, train platform displays and airport signage. People are targeted by transit advertising during their everyday commutes or travels, allowing firms to access a captive audience and create exposure in congested urban locations. Internet Media: The Internet has transformed how we interact, access information, and do business. The Internet, as a media in Integrated Marketing Communications (IMC), has unequalled reach, engagement, and targeting capabilities. 1. Websites: Websites act as a focal point of communication and information for brands. They allow businesses to present their products, services, and brand identity in a comprehensive and interactive manner. Websites enable businesses to reach and convert potential customers online by providing interesting content, multimedia components, and e-commerce capability. 2. Search Engine Marketing (SEM): Search engine marketing is the practice of promoting websites using paid search adverts that display on search engine results pages. Marketers can bid on keywords related to their business in order to ensure that their website displays prominently when users search for related phrases. SEM enables targeted reach and instant visibility to users who are actively looking for certain products or information. 3. Social Media: Social media platforms like Facebook, Instagram, Twitter, LinkedIn, and YouTube have evolved into effective tools for brand communication and customer involvement. They provide a platform for content sharing, audience interaction, community building, and targeted advertising initiatives. Targeting on social media is possible based on demographics, interests, behaviours, and user-generated data. 4. Email Marketing: Email marketing is the practise of sending promotional messages, newsletters, or personalised material to people's email addresses. It is a low-cost, focused method of communication that lets organizations to nurture existing customer connections, generate leads, and drive conversions. Personalization of email marketing might be based on user preferences, purchase history, or segmentation data. 5. Online Display Advertising: Banner ads, pop-up ads, video commercials, and other graphical or interactive advertisements displayed on websites, apps, or social media platforms are examples of online display advertising. To reach specific populations, advertisers might use advanced targeting options such as demographic profiling, contextual targeting, or remarketing. Display advertising benefits from aesthetic appeal, interactivity, and the ability to track performance via analytics. munotes.in
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20 Integrated Marketing Communiucation 6. Content Marketing: To attract and engage a target audience, content marketing entails generating and delivering valuable, relevant, and consistent information. It consists of blog entries, articles, videos, infographics, and other types of content that provide users with information, enjoyment, or solutions. Content marketing contributes to the development of brand authority, credibility, and trust, as well as boosting organic traffic and cultivating consumer loyalty. 2.8 SUMMARY Advertising is a crucial element of marketing that aims to promote products, services, or brands to target audiences. It utilizes various types of media channels to deliver messages effectively. Print media, such as newspapers, magazines, brochures, and catalogs, offers tangibility, credibility, and targeted reach. Broadcast media, including television and radio, provides a wide reach, visual and audio impact, and mass appeal. Outdoor or out-of-home (OOH) media, like billboards and transit advertising, offers high visibility, contextual relevance, and continuous exposure. The Internet has revolutionized advertising, providing global reach, targeted advertising, interactivity, real-time analytics, and cost-effectiveness. Each type of media brings its own advantages, allowing advertisers to create integrated marketing communication strategies that effectively engage with their target audiences. 2.9 TEST YOUR KNOWLEDGE 1. What is advertising? A. publicity B. sales promotion C. paid information D. all the above 2. Placement of advertisements inside or outside transportation vehicles is known as A. Arial advertising. B. Outdoor advertising C. Transit advertising D. classifieds 3. _________ are large structures located in public places which display advertisements to passing pedestrians and motorists. A. posters B. billboards C. display D. classified 4. What are the elite qualities of advertising? A. Consumers view advertised products as standard and legitimate. B. Advertising is expressive, allowing the dramatization of products. C. Advertising can be used to build up a long-term image for a product. D. Can reach masses of geographically dispersed buyers at low cost exposure. munotes.in
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Types of Media 5. Newspaper Advertising Strengths A. Audience in appropriate mental frame. B. Mass audience coverage. C. Flexibility. D. All the above 2.10 ANSWERS 1) D 2) C 3) B 4) C 5) D 2.11 QUESTIONS Q.1 What is advertising? Explain the features and objectives of advertising. Q.2 Explain the importance of advertising. Q.3 What is media? Explain the different types of media. 2.12 REFERENCES Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing management: an Asian perspective. Harlow: Pearson. Saxena, R. (2005). Marketing management. Tata McGraw-Hill Education. Karunakaran, K. (2008). Marketing management. Himalaya Publishing House. Percy, L. (2023). Strategic integrated marketing communications. Taylor & Francis. Juska, J. M. (2021). Integrated marketing communication: advertising and promotion in a digital world. Routledge. Broderick, A., & Pickton, D. (2005). Integrated marketing communications. Pearson Education UK. munotes.in
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22 Integrated Marketing Communiucation 3 ADVERTISING Unit Structure: 3.0 Objectives 3.1 Introduction 3.2 Different Dimension of Advertising 3.3 Developing the Campaign 3.4 Effect of Celebrity Endorsements 3.5 Advertising Agency- Functions 3.6 Advertising Agency- Types 3.7 Advertising Agency- Structure 3.8 Summary 3.9 Question 3.10 Case let 3.11 Reference 3.0 OBJECTIVES 1. To understand the concept of advertising 2. To know about the different dimensions of advertising. 3. To acquire knowledge about the advertising agency and its functions 3.1 INTRODUCTION- ADVERTISING Integrated Marketing Communication (IMC) is a strategic approach that combines various marketing communication tools and channels to create a seamless and consistent brand message. It aims to deliver a unified message to the target audience, ensuring that all marketing efforts work together synergistically to enhance brand recognition, increase customer engagement, and ultimately drive sales. One crucial component of IMC is advertising, which plays a pivotal role in promoting products, services, and brands to the target audience. Advertising involves creating persuasive messages and delivering them through various media channels, such as television, radio, print, digital platforms, and social media. munotes.in
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We will delve deeply into the realm of Advertising, a concept rooted in the Latin term 'Adverto,' signifying the act of redirecting focus towards a particular subject or objective. Definition Advertising embodies a compensated and impersonal mode of showcasing and advocating concepts, products, or services, attributed to a discernible sponsor. Every advertisement is accompanied by a specified medium and message. The advertiser's objective is to disseminate their messages and notions to potential customers, imparting information effectively. Through this approach, the advertiser endeavors to enhance the recognition of products or services, ultimately achieving the fundamental goal of this endeavor. 3.2 DIFFERENT DIMENSION OF ADVERTISING Diverse Facets of Advertising Illustrated with Contemporary Instances (a) Societal Dimension of Advertising The social dimension of advertising serves as a platform to acquaint the community with a plethora of available products, their technology, applications, and how these innovations can enrich the society's well-being. It goes beyond product promotion to educate against potential life hazards. For instance, advertisements caution against health risks such as smoking, reckless driving, and environmental pollution. Campaigns against population growth and cancer awareness contribute to societal welfare. However, ethical advertising should shun deception, manipulation, and inappropriate content, ensuring that consumers are not exploited through tactics like sex appeal. An example of this dimension can be seen in anti-smoking campaigns that highlight the health dangers. (b) Economic Dimensions Advertising operates on an economic plane with significant investments, especially when utilizing high-cost mediums like television. The choice of media and financial allocation must align. It fuels employment opportunities in fields like copywriting and marketing, where various elements such as message, media, money, and measurement converge. Effective advertising enlightens consumers about products and guides their decision-making process. It bolsters consumption, propelling economic growth and serves as a gateway for new products into the market. Larger demand driven by advertising leads to economies of scale across production, marketing, and distribution. Apple's advertising campaigns for new product launches exemplify the economic dimensions of advertising. (c) Psychological Aspects Psychological advertising confronts moral and psychological sensitivities. It emphasizes the need to avoid targeting alcohol-related munotes.in
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24 Integrated Marketing Communiucation products at underage individuals or using offensive content. Ads objectifying women, as seen in certain cosmetic and lingerie commercials, evoke societal criticism. The controversial Calvin Klein campaigns have been met with backlash due to perceived promotion of sexual permissiveness. The psychological dimension acknowledges that consumers often face cognitive dissonance before and after purchases. Advertisers strive to alleviate such uncertainty through reinforcing the consumer's choice, as observed in the marketing strategies of luxury brands like Gucci. (d) Communication Endeavor Advertising functions as a communication conduit that captivates and informs consumers. It employs various narratives, stories, data representation, and creative elements to convey its message. Accurate interpretation of the message by the audience is vital. Notably, advertising is potent in shaping attitudes, altering beliefs, and inducing attitudinal shifts. For example, Dove's "Real Beauty Sketches" campaign altered societal perceptions of beauty by highlighting personal insecurities. (e) Triangle of Communication The communication triangle illustrates the dynamic interaction within advertising. Advertisers utilize resources to craft messages that are disseminated through chosen media. However, audience reception may be influenced by noise and external factors. This engagement sparks audience responses, which in turn drive advertiser research and strategy refinement. A contemporary instance is Google's utilization of online ads tailored to users' search history, thereby showcasing the interactive nature of the communication triangle.
Source: Consumer Behaviour and Advertising Management by Matin Khan, published by New Age International (P) Ltd In essence, advertising traverses multifaceted dimensions, extending beyond mere promotion to shape societies, economies, psyches, communication, and engagement dynamics. These dimensions collectively exemplify the intricate role advertising plays in our modern world.
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3.3 DEVELOPING THE CAMPAIGN An advertising campaign is a well-orchestrated endeavor aimed at achieving an organization's goals through a strategic sequence of advertisements disseminated across diverse media channels. In India, several companies have effectively employed advertising campaigns to establish brand dominance and drive business growth. Let's delve into the detailed steps of creating such a campaign: • Analysing the market opportunity for advertising. • Setting advertising objectives. • Allocating a budget for the campaign. • Choice of media. • Creating of Ads and pretesting them before release. • Post testing of Ads or measuring the Ad effectiveness Step 1: Analysing the Market Opportunity for Advertising In this initial phase, marketers thoroughly evaluate the market to identify opportunities, challenges, target audience preferences, and competitive landscapes. Understanding customer needs and market trends helps in crafting an impactful campaign strategy. Example: Amul's "The Taste of India" Campaign Amul capitalized on India's diverse culinary culture and created a series of advertisements showcasing its dairy products as an essential component of Indian cuisines. By tapping into the emotional connection Indians have with their food, Amul solidified its brand identity. Step 2: Setting Advertising Objectives Clear and achievable objectives provide direction for the campaign. These objectives could include increasing brand awareness, boosting sales, introducing new products, or altering consumer perceptions. Example: Tanishq's "Remarriage" Campaign Tanishq's campaign aimed to redefine societal perceptions around remarriage in India. By highlighting the emotional aspects and resonating with progressive values, the brand successfully portrayed its jewelry as a symbol of celebration and acceptance. Step 3: Allocating a Budget for the Campaign An appropriate budget allocation considers factors like media costs, creative production expenses, and expected outcomes. Balancing resources ensures the campaign's effectiveness without overspending. munotes.in
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26 Integrated Marketing Communiucation Example: Coca-Cola's Festive Campaigns Coca-Cola has consistently invested in high-budget festive campaigns during occasions like Diwali and Christmas. These campaigns combine emotional storytelling with wide-reaching media placements to foster a sense of celebration and togetherness. Step 4: Choice of Media Selecting the right mix of media channels to reach the target audience is crucial. It involves evaluating traditional media (TV, print) and digital platforms (social media, online ads) based on audience behavior and preferences. Example: Swiggy's Hyper-Localized Social Media Campaigns Swiggy, an Indian food delivery platform, employs hyper-localized campaigns on social media platforms like Instagram and Twitter. These campaigns use local trends, events, and references to connect with specific city-based audiences. Step 5: Creating Ads and Pre-Testing Creating compelling advertisements that resonate with the target audience is essential. Pretesting involves assessing the ads' effectiveness, message clarity, and emotional impact before launching the campaign. Example: Fevicol's Humorous and Memorable Campaigns Fevicol, a popular adhesive brand, is known for its humorous and memorable ads that showcase the strength of its product in a light-hearted manner. These ads undergo pretesting to ensure the humor lands well with the audience. Step 6: Post testing or Measuring Ad Effectiveness After the campaign launch, measuring its impact and effectiveness is crucial. Metrics like brand recall, reach, engagement, and sales conversions are analyzed to assess the campaign's success. Example: Cadbury's "Kuch Meetha Ho Jaye" Campaign Cadbury's iconic campaign focused on associating its chocolates with moments of celebration and happiness. The brand measured success through increased sales during festive seasons and enhanced brand recall. 3.4 EFFECT OF CELEBRITY ENDORSEMENTS Celebrity endorsements are a prevalent strategy in advertising, where well-known personalities are leveraged to promote products or services. This practice capitalizes on the influence and appeal of celebrities to establish a connection between the brand and its target audience. In India, celebrity endorsements have become a common sight across various sectors, munotes.in
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showcasing both the benefits and potential challenges of this marketing approach. Positive Impacts of Celebrity Endorsements: 1. Enhanced Brand Recognition: Celebrity endorsements can significantly boost brand visibility and recognition, as the celebrity's popularity draws attention to the product or service. Example: Amitabh Bachchan for Cadbury Dairy Milk Amitabh Bachchan's association with Cadbury Dairy Milk has not only increased the brand's recall value but also added a touch of nostalgia, making it a memorable campaign. 2. Credibility and Trust: Celebrities lend their credibility to the brand, fostering trust among consumers. People often associate the celebrity's positive qualities with the endorsed product. Example: Virat Kohli for Audi Indian cricket captain Virat Kohli's endorsement of Audi adds a sense of prestige and performance to the brand, appealing to a luxury-conscious audience. 3. Emotional Connection: Celebrities evoke emotions, and their endorsement can create a strong emotional connection between the audience and the product, making it more relatable and aspirational. Example: Shah Rukh Khan for Nerolac Shah Rukh Khan's association with Nerolac paints an emotional story, demonstrating how a celebrity's persona can enhance the narrative of the campaign. Challenges of Celebrity Endorsements: 4. Risk of Controversies: Celebrities' personal behavior can negatively impact the brand if they are involved in controversies, leading to brand damage. Example: Maggi with Madhuri Dixit When concerns about Maggi's safety arose, the brand, endorsed by Madhuri Dixit, faced backlash as consumers associated the controversy with the celebrity. 5. Authenticity Concerns: If the celebrity's alignment with the product is not authentic, the endorsement can come across as forced and insincere. Example: Salman Khan and Mountain Dew munotes.in
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28 Integrated Marketing Communiucation Salman Khan's persona as an action star didn't necessarily align with the image of a refreshing beverage like Mountain Dew, which led to questions about authenticity. 6. Overexposure: Overusing a celebrity in multiple endorsements can dilute the impact and make the association less effective. Example: Deepika Padukone's Multiple Endorsements Deepika Padukone's numerous endorsements led to questions about whether her association with a brand was genuine or just for financial gains. 3.5 ADVERTISING AGENCY- FUNCTIONS Introduction Advertising has become quite complicated and expensive these days. Many companies seek help from advertising agencies to handle the work for them. To make advertising successful, the advertising agency and the company need to work together closely. They collaborate on things like which media to use, what the ads should say, how much money to spend, and what goals they want to achieve. The company should provide all the important information to the ad agency, like details about the company, the market, and the customers. The agency becomes like a part of the company and both sides need to work well together. The agency needs to be skilled and understand things like how the product is different from others, how it's known, and how it's sold. Nowadays, agencies know a lot about marketing and even help with things like research to choose the best ways to promote the product. This close relationship between the company and the agency benefits both of them in the long run. An advertising agency is a special group that's good at planning and creating advertisements for companies. In India, there are many such agencies with offices in cities like Delhi, Mumbai, and Chennai. Companies use these agencies because they have experts who are really good at what they do, like artists, writers, and people who know about media and technology. These agencies have lots of experience in solving problems for different companies, so they can be trusted. Choosing the right agency involves looking at things like whether they offer all-around services or just specific ones. It's also important to see if the agency works well with the company and if they have the right skills. The agency's history of working with other companies, their creativity, and how they solve problems are all important factors. Other things the agency does include managing money, deciding where to show the ads, doing research, and keeping everything organized. They help the company by providing specialized services for promoting products. Companies like Tanishq, which sells jewelry, have used agencies like Lowe munotes.in
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Lintas for their advertising campaigns. This shows how making smart decisions about agencies can lead to successful advertising. Functions of Advertising Agency Advertising agencies serve as essential players in the realm of marketing, taking on various roles and functions that contribute to the success of both businesses and campaigns. Here, we explore the core functions of these agencies and their impact on the marketing landscape: 1) Attracting Clients One of the primary functions of advertising agencies is to attract advertisers as clients. These clients are the lifeblood of the agencies, providing the revenue necessary for their sustenance. Agencies entice potential clients by offering a diverse range of swift and cost-effective services. By delivering value and building strong relationships, agencies foster customer loyalty and enduring partnerships. 2) Research Endeavors: In-depth research is a vital role played by advertising agencies. They meticulously gather essential information about the advertiser's product, delving into features, qualities, limitations, market competition, distribution methods, buyer preferences, and future market trends. This comprehensive research informs strategic decisions, ensuring campaigns are tailored to meet market demands. 3) Advertising Planning: A cornerstone function is the development of advertising plans. After conducting research on client products, competitors, target audiences, and market dynamics, agencies create a detailed blueprint for advertising campaigns. Once clients approve the plan, it is executed to deliver optimal results aligned with client goals. 4) Budget Formulation: Advertising agencies craft advertising budgets, a crucial aspect of efficient campaign management. A well-defined budget ensures that all advertising activities are carried out judiciously, maximizing resource utilization. A sound budgeting approach safeguards against wastage and instills client trust in the agency's financial stewardship. 5) Coordination Enhancement: Effective coordination is a pivotal function carried out by advertising agencies. They foster collaboration among all stakeholders involved in marketing campaigns, including clients, media platforms, sales munotes.in
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30 Integrated Marketing Communiucation teams, and distributors. Seamless coordination is pivotal for sustained campaign success and minimizes conflicts that can hinder progress. 6) Media Selection Expertise: The selection of appropriate media platforms constitutes a critical function. Advertising agencies leverage their expertise to choose the right media for effectively conveying content. This decision is informed by the potential of each medium to deliver optimal results at reasonable costs. Establishing and nurturing good relationships with chosen media outlets are integral to the process. 7) Creative Endeavors: Bringing advertising plans to life is a key function involving creative execution. Expert teams comprising designers, copywriters, and artists collaborate to craft compelling designs, layouts, and illustrations for ads. Creative ideas enhance the appeal of advertisements, making them more engaging and impactful, ultimately driving product sales. 8) Non-Advertising Services: Beyond traditional advertising, agencies extend a spectrum of non-advertisement services to clients. These encompass diverse areas such as product design, pricing strategy, discount determination, label and packaging design, and trademarking. Such comprehensive support aids in elevating overall product sales and market presence. 3.6 ADVERTISING AGENCY- TYPES Advertising agencies come in various forms, each specializing in distinct approaches to deliver impactful campaigns. Here's a breakdown of these agency types, accompanied by Indian examples: 1. Full-Service Advertising Agencies: These agencies offer a comprehensive range of promotional services, handling all aspects of advertising from start to finish. They are medium to large-sized entities capable of executing entire marketing campaigns. Services provided include TV ads, content creation, campaign management, radio commercials, social media management, print advertising, search engine optimization, and strategic planning. Ex.- Ogilvy & Mather (O&M) is one of India's leading full-service advertising agencies. They've managed iconic campaigns for brands like Cadbury, Fevicol, and Vodafone, offering a holistic range of services. 2. Traditional Agencies: These agencies rely on conventional methods for their marketing efforts, using mediums like newspapers, radio, television, billboards, munotes.in
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and magazines. They are suitable for companies seeking local-level advertising reach. Ex.- J. Walter Thompson JWT India has a rich history of traditional advertising campaigns, having worked with brands like Pepsi, Nestle, and Hero MotoCorp. 3. Social Media Agencies: Specializing in social media platforms, these agencies focus solely on utilizing tools like Facebook, LinkedIn, Instagram, and Twitter for their campaigns. They create engaging content and optimize ads to maximize results on these channels. Ex.- WAT Consult is a prominent social media agency in India, renowned for its digital campaigns and social media management for brands like Mahindra, Vero Moda, and Nikon. 4. Creative Boutique: Creative boutiques specialize in graphic design, crafting visual elements such as logos, letterheads, business cards, billboards, and print marketing materials. Ex.- Happy Creative Services has established itself as a creative boutique in India, focusing on delivering visually appealing campaigns for clients like Flipkart, OYO, and Himalaya. 5. Media Buying Agency: These agencies specialize in purchasing ad spaces and optimizing placements for maximum impact. They handle media planning, ensuring ads are showcased optimally within budget. Ex.- GroupM a global media investment group, operates in India, offering media buying services for brands like Amazon, Tata, and PepsiCo. 3.7 ADVERTISING AGENCY- STRUCTURE An advertising agency's structure is meticulously designed to facilitate seamless collaboration and efficient execution of campaigns. Let's explore the various departments within an agency, supported by examples from the Indian advertising landscape: 1. Account Department: The account department is the bridge between the agency and its clients. It nurtures client relationships, assists in campaign planning, and negotiates contracts. This department is responsible for understanding client needs and ensuring their satisfaction throughout the campaign. Ex.- McCann World group India a renowned agency, emphasizes strong client relationships. Their account department collaborates closely with clients like Coca-Cola, Mastercard, and Paytm, tailoring campaigns to their unique requirements. munotes.in
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32 Integrated Marketing Communiucation 2. Marketing Services Department: This department gathers market insights through research and surveys. It analyzes consumer attitudes and market competition to inform effective ad and message design. It aids in selecting the most suitable advertising mediums for campaigns. Ex.-DDB Mudra Group excels in market research and insights. The agency's marketing services department helps brands like Volkswagen, Samsung, and Adani navigate market dynamics for impactful campaigns. 3. Creative Department: The creative team shapes the visual and conceptual aspects of advertisements. It includes graphic designers, art directors, programmers, and more. This team transforms ideas into compelling visuals using modern tools. Ex.-FCB Interface creative team has produced engaging campaigns for brands like Amul, Tata Motors, and Horlicks, showcasing their prowess in crafting memorable ad designs. 4. Media Planning Department: This department focuses on selecting the optimal media mix for campaigns. It assesses various media platforms based on cost-effectiveness and reach to ensure maximum impact. Ex.- Mindshare India part of GroupM, exemplifies media expertise. The media planning department enhances campaigns for clients like Nestlé, Ford, and Netflix through strategic media selection. 5. Internal Services Department: This department ensures efficient collaboration among agency departments. It's divided into sub-departments, such as the Traffic department, overseeing workflow; the Human Resource department, managing workforce matters; and the Finance department, handling agency finances. Ex.- Wunderman Thompson India’s internal services contribute to seamless operations. Their HR department ensures a talented workforce supports campaigns for brands like Godrej, Nike, and PepsiCo. 6. Client Services Department: Found in larger agencies, this department goes beyond marketing ads. It offers additional promotional services like public relations campaigns, exhibitions, and product demand research to support clients' business growth. Ex.- Leo Burnett India client services team extends beyond advertising. Their work with brands like McDonald's, HDFC Life, and Bajaj Allianz includes broader promotional strategies beyond traditional ads. munotes.in
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3.8 SUMMARY • An advertising campaign involves a meticulous process encompassing market analysis, objective setting, budget allocation, media selection, ad creation, pretesting, and post testing. Indian companies like Amul, Tanishq, Coca-Cola, Swiggy, Fevicol, and Cadbury have effectively executed campaigns that align with these steps, showcasing the power of strategic advertising in driving brand recognition, engagement, and business growth. • While celebrity endorsements offer distinct advantages in terms of visibility, credibility, and emotional connection, they also come with potential pitfalls. The key is to carefully select celebrities whose values and persona align with the brand's identity. Indian companies like Cadbury Dairy Milk, Audi, Nerolac, and Maggi have demonstrated both the positive impact and challenges of celebrity endorsements. In the end, a well-thought-out strategy that considers both the celebrity's appeal and authenticity is essential for a successful celebrity-driven advertising campaign. • Advertising agencies play multifaceted roles that span attracting clients, conducting research, strategic planning, budget formulation, coordination, media selection, creative execution, and diverse non-advertising services. By fulfilling these functions, agencies contribute significantly to the effectiveness and success of marketing campaigns, fostering growth for both the clients they serve and their own organizations. • In the diverse landscape of advertising agencies, each type brings unique strengths and expertise to the table. Indian examples like Ogilvy & Mather, J. Walter Thompson, WAT Consult, Happy Creative Services, and GroupM showcase how these agencies contribute to the success of well-known brands across different segments of the advertising industry. • In the Indian advertising landscape, agencies like McCann Worldgroup India, DDB Mudra Group, FCB Interface, Mindshare India, Wunderman Thompson India, and Leo Burnett India exemplify these departments' roles in delivering impactful campaigns and supporting diverse client needs. 3.9 QUESTION 3.9.1 Multiple Choice Questions 1. What does Integrated Marketing Communication (IMC) aim to achieve? a) Fragmented brand message b) Inconsistent marketing efforts munotes.in
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34 Integrated Marketing Communiucation c) Unified brand message and synergy in marketing efforts d) Limited customer engagement 2. What is the primary purpose of advertising in IMC? a) To confuse the target audience b) To complicate brand messaging c) To promote products, services, and brands to the target audience d) To reduce customer engagement 3. What does the term 'Adverto' mean in Latin? a) Advertising b) Redirection c) Promotion d) Persuasion 4. Which of the following is NOT a characteristic of advertising? a) Compensated b) Impersonal c) Unidentifiable sponsor d) Involves creating persuasive messages 5. What is the fundamental aim of advertising? a) To confuse potential customers b) To manipulate consumer decisions c) To disseminate messages to potential customers and enhance product recognition d) To increase costs for advertisers Solution 1- c, 2- c 3- b, 4- c, 5- c 3.9.2 Long Answer Questions 1) Discuss the various dimensions of advertising, going beyond its conventional role of promoting products. 2) Discuss the functions of departments like Account, Marketing Services, Creative, Media Planning, Internal Services, and Client Services. Use examples to showcase how advertising agency structures contribute to successful advertising campaigns and client satisfaction. 3) Analyze the diverse types of advertising agencies and their specialized approaches. Discuss the roles and characteristics of full-munotes.in
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service advertising agencies, traditional agencies, social media agencies, creative boutiques, and media buying agencies. 4) Examine the impact of celebrity endorsements on advertising campaigns and brand perception. Provide case studies of successful and unsuccessful celebrity endorsements to illustrate the importance of aligning celebrity personas with brand values and the implications of celebrity behavior on brand reputation. 3.10 CASE LET Celebrity Endorsements Gone Awry: Navigating Challenges in Brand Promotion Background: ABC Corporation, a leading consumer electronics company, aimed to boost its market share in the rapidly evolving smartphone industry. In an attempt to appeal to a younger demographic and gain a competitive edge, the company decided to launch a new smartphone model targeted at tech-savvy millennials. To elevate their campaign, ABC Corporation decided to collaborate with a popular young celebrity, Alloy Turn, who was known for his charismatic presence and massive online following. The Celebrity Endorsement: Alloy Turn 's endorsement was envisioned as a means to enhance the new smartphone's appeal and connect with the target audience. His influence was expected to contribute significantly to the smartphone's success. The company believed that Turn's association with the brand would create a sense of authenticity and establish a relatable image for the product. Challenges Faced: Unfortunately, the celebrity endorsement campaign faced unforeseen challenges that threatened its success: • Misalignment of Brand Image: Despite his popularity, it became evident that Alloy Turn's personal brand image did not align well with ABC Corporation's product positioning. Turn's, known for his carefree and rebellious demeanor, was at odds with the sophisticated and professional image the company intended to convey. This misalignment led to confusion among consumers about the smartphone's intended market and purpose. • Crisis of Authenticity: Turn's endorsement of the smartphone was met with skepticism from both consumers and industry experts. His previous involvement in controversies and public disagreements with technology companies raised concerns about the authenticity of his endorsement. This skepticism led to doubts about the sincerity of his support for the product. • Rapid Spread of Negative Publicity: With the rise of social media, negative feedback spread quickly. Consumers took to various munotes.in
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36 Integrated Marketing Communiucation platforms to express their doubts and disappointment with the celebrity endorsement. Negative memes, sarcastic comments, and parodies started to circulate, damaging the smartphone's brand perception even further. • Reputation Management: The backlash from the endorsement prompted ABC Corporation to rethink its strategy. The company faced the challenge of mitigating the negative impact on its reputation while still maintaining its goal of attracting the millennial audience. • Response and Resolution: Recognizing the severity of the situation, ABC Corporation swiftly addressed the challenges: • Reevaluation and Refinement: The company initiated an internal review of its marketing strategy and messaging. It worked with its advertising agency to redefine the brand's identity and develop a campaign that resonated better with the target audience. • Celebrity Redefinition: While the initial endorsement proved challenging, the company decided to utilize Turn's influence differently. Instead of being the face of the brand, Turner's involvement was refocused on interactive social media engagement and limited appearances, allowing for authentic connections with consumers. • Transparency and Communication: ABC Corporation took a transparent approach, acknowledging the challenges and changes made to the campaign. It communicated its commitment to addressing customer concerns and delivering a product aligned with consumer needs. Outcome: The challenges posed by the misaligned celebrity endorsement ultimately prompted ABC Corporation to reevaluate its campaign strategy. While the initial setbacks were significant, the company's quick response and strategic adjustments allowed it to salvage the campaign's effectiveness. The episode served as a valuable lesson about the importance of aligning celebrity endorsements with brand values and understanding the potential risks associated with such partnerships. 3.11 REFERENCE Books 1. Consumer Behaviour and Advertising Management by Matin Khan, published by New Age International (P) Ltd ISBN (13) : 978-81-224-2552-9 munotes.in
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2. Advertising and Promotion: An integrated Marketing Communications Perspective (Sixth Edition), George E. Belch & Michael A. Belch, Publisher McGraw- Hill Companies 3. Integrating Marketing Communication, by Philip J. Kitchen and Patrick De Pelsmacker, Taylor & Francis e-Library, 2004, ISBN 0-203-33724-7 (Adobe eReader Format) 4. Integrating Marketing Communication, by Tony Yeshin, published by The Chartered Institute of Marketing, ISBN 0 7506 1923 6 Website 1. https://bbamantra.com/advertising-agency/ 2. https://commercemates.com/advertising-agency/ 3. https://subjectquery.com/concept-of-advertising-agency/ munotes.in
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38 Integrated Marketing Communiucation 4 REPUTATION MANAGEMENT Unit Structure: 4.0 Objectives 4.1 Reputation Management- Introduction, Meaning and Definition 4.2 Reputation Management-Issues and Challenges 4.3 Case Study 4.4 Summary 4.5 Question 4.6 Reference 4.0 OBJECTIVES 1. To understand the concept of reputation management. 2. To know about the different issues and challenges in reputation management 3. To deal the real life situation of reputation management through case studies. 4.1 REPUTATION MANAGEMENT Introduction Reputation management within the realm of Integrated Marketing Communication (IMC) is a strategic approach aimed at maintaining, enhancing, and influencing the perception of an organization, brand, or individual among its target audience. This approach involves aligning all communication efforts, across various channels, to consistently convey a positive and credible image. By integrating reputation management into IMC, organizations can effectively shape public perceptions, build trust, and establish a strong brand identity. Meaning Reputation management in the context of IMC refers to the proactive management of how an entity is viewed by its stakeholders through coordinated and unified communication methods. Beyond simple crisis management, it also includes ongoing initiatives that gradually change people's perspectives and attitudes. Under IMC, reputation management entails the collaborative coordination of marketing, public relations, social media, branding, and other communication components to provide a coherent story that supports a good reputation. munotes.in
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Definition • According to John Doorley and Helio Fred Garcia: "Reputation management is the systematic research, cultivation, and ongoing management of the perceptions that stakeholders have of an organization." This definition emphasizes the comprehensive nature of reputation management, involving a structured approach that encompasses research, nurturing positive perceptions, and continuous management to influence stakeholders' views. • According to Michael Fertik and David C. Thompson: "Reputation management is a process of actively using the engagement tools of social media to strengthen your network and enhance the positive content about you." This definition highlights the role of social media as a key tool in reputation management. It focuses on leveraging social media platforms to actively engage with the audience, build a positive network, and promote favorable content. • According to Daniel Diermeier: "Reputation management is the orchestration of initiatives by which stakeholders' perceptions of an organization are influenced." This definition emphasizes the strategic nature of reputation management. It suggests that reputation is not passive but can be actively shaped through well-coordinated initiatives that target stakeholders' perceptions. • According to Gini Dietrich: "Reputation management is the practice of monitoring and influencing what is being said about your company, products, and services, and addressing and mitigating risks." This definition underscores the proactive approach to reputation management. It involves vigilant monitoring of discussions related to the organization and taking action to influence the narrative, respond to concerns, and manage potential risks. Collectively, these definitions illustrate that reputation management is a multifaceted process that involves continuous monitoring, engagement, and strategic initiatives to shape perceptions, particularly in the context of integrated marketing communication. The integration of reputation management within IMC ensures that an organization's messaging, actions, and communication efforts are aligned to create a positive and cohesive brand image across various channels and stakeholder interactions. munotes.in
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40 Integrated Marketing Communiucation 4.2 REPUTATION MANAGEMENT-ISSUES AND CHALLENGES Challenges: • Online Presence and Social Media: The rapid spread of information through social media platforms like Twitter and Facebook can amplify reputational issues. For example, negative news about a company's product can quickly go viral, reaching a vast audience within hours. An instance could be when a major airline faces severe backlash due to multiple passengers sharing videos of their poor in-flight experiences, causing a PR crisis. • Viral Nature of Content: High internet penetration in India means that content, whether positive or negative, can spread rapidly. A minor issue can escalate into a major reputation crisis overnight, as seen when a well-known food delivery app faces backlash due to a video of delivery personnel mishandling food packages going viral. • Misinformation and Fake News: The prevalence of misinformation and fake news on social media can significantly harm reputations. A false rumor about a brand's actions or intentions can spread rapidly, damaging its credibility. For instance, a pharmaceutical company might face negative publicity due to false claims about the side effects of its products being circulated on social media. • Lack of Control: Organizations often struggle to control the narrative, particularly in an environment where negative reviews or complaints can quickly gain traction online. A brand may find it challenging to manage a situation where multiple customers share their negative experiences with a product on various platforms. • Speed of Response: With widespread mobile phone usage, the speed of response to reputation-threatening incidents is crucial. A slow or ineffective response to a crisis can lead to further damage. For example, an e-commerce platform receiving complaints about a data breach must respond promptly to address concerns and prevent loss of trust. Issues: • Crisis Management: Companies in India need a robust crisis management plan. For instance, a food contamination issue in a popular restaurant chain could cause severe damage to its reputation. Quick and effective munotes.in
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communication, along with corrective actions, is essential to prevent customer distrust and negative publicity. • Differing Stakeholder Perceptions: India's diversity in terms of regions, languages, and demographics can lead to differing stakeholder perceptions. An advertising campaign that resonates positively in one region might be offensive in another. A brand promoting vegetarianism might face backlash in a region where meat consumption is culturally significant. • Competitor Actions: Competitors might engage in smear campaigns to harm a rival's reputation. For instance, a telecom company spreading false information about another company's network reliability can lead to customer skepticism and reputation damage. • Privacy Concerns: Collecting and using data for reputation management can raise privacy concerns among Indian consumers. Mishandling data or sharing personal information without consent can lead to negative perceptions and potential legal actions. • Cultural and Global Differences: Organizations must navigate the intricacies of cultural diversity in India. An international brand might inadvertently offend local sentiments, leading to reputation issues. For example, a fashion brand introducing a global advertising campaign without considering cultural sensitivities might face backlash for cultural insensitivity. These challenges and issues underline the complexities of reputation management in India's diverse and dynamic market. Addressing them requires a well-defined strategy that considers cultural nuances, the rapid pace of social media, and the importance of quick and transparent communication. 4.3 CASE STUDY Case 1: Social Media Crisis for an Indian Retail Brand - "Trendify India" Scenario: "Trendify India" is a popular Indian retail brand specializing in fashion accessories such as handbags, jewelry, and footwear. The brand has a strong presence on various social media platforms and actively engages with its target audience, primarily young adults. Issue: A customer posts a video on Instagram showing a broken strap on a handbag purchased from Trendify India. The video gains significant traction and munotes.in
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42 Integrated Marketing Communiucation starts circulating on other platforms, such as Twitter and Facebook. People begin using the hashtag #TrendifyFail to share their own negative experiences with the brand's products, alleging poor quality and faulty items. Challenge: Trendify India faces the challenge of addressing the social media crisis promptly to prevent further damage to their reputation, customer trust, and overall sales during a crucial shopping season. Reputation Management Strategy: Trendify India implements an integrated reputation management strategy aligned with their Integrated Marketing Communication (IMC) plan: • Rapid Acknowledgment: Trendify India's social media team detects the trending hashtag and swiftly responds to the initial Instagram post. They express regret for the customer's experience and commit to resolving the issue. • Detailed Investigation: The brand initiates an internal investigation to identify the reasons for the faulty handbag. They assure customers that the problem will be addressed transparently. • Centralized Communication: Trendify India creates a dedicated section on their website to address the crisis. They share the link across all their social media platforms to ensure consistent messaging. • Customer Engagement: The brand actively engages with customers' comments, addressing concerns and sharing progress updates on the investigation. • Compensation and Amends: Trendify India reaches out to customers who shared similar experiences and offers them replacements or refunds. They publicly state their commitment to customer satisfaction. • Behind-the-Scenes Content: The brand creates videos showcasing their quality control processes, emphasizing their dedication to delivering high-quality products. • Promotional Campaign with Assurance: Trendify India launches a promotional campaign with the message "Quality Assured." They offer discounts on selected products while munotes.in
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ensuring consistent messaging across various communication channels. Outcome: Trendify India's strategic reputation management approach and IMC efforts yield positive results: 1. The brand's prompt response and transparent communication are appreciated by customers, leading to a shift in sentiment from negative to neutral or positive. 2. The hashtag #TrendifyFail transforms into a space where customers discuss how the brand acknowledged and addressed their concerns, showcasing Trendify India's commitment to customer satisfaction. 3. The "Quality Assured" campaign gains momentum, with customers sharing their positive experiences and highlighting the improvements in product quality. 4. Over time, Trendify India successfully rebuilds its reputation as a reliable and customer-centric brand that values feedback and actively addresses issues. Case 2: Pharma Company's CSR Initiative Issue: A pharmaceutical company in India faces criticism for its environmental impact due to waste generated by its manufacturing process. This negative perception could harm its reputation and sales. Challenge: The company needs to counter the negative image and demonstrate its commitment to responsible business practices. Reputation Management Strategy: • CSR Campaign: The company launches a Corporate Social Responsibility (CSR) initiative focusing on environmental sustainability. This includes waste reduction, recycling efforts, and reforestation programs. • Integrated Messaging: The company integrates its CSR efforts into its overall IMC strategy. It promotes its environmental initiatives through advertisements, press releases, and social media campaigns. • Stakeholder Engagement: The company collaborates with local communities, NGOs, and environmental groups to showcase its commitment to making a positive impact. • Transparency: Regular updates are provided to the public regarding progress on waste reduction and environmental goals. • Employee Involvement: The company involves its employees in volunteering for environmental projects, reinforcing the company's dedication to the cause. munotes.in
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44 Integrated Marketing Communiucation Outcome: By aligning its CSR initiative with its IMC strategy, the pharmaceutical company successfully shifts the focus from its negative environmental impact to its efforts to make a positive contribution. This helps enhance its reputation, build trust, and demonstrate responsible corporate citizenship. 4.6 SUMMARY • Reputation management within IMC involves proactive efforts to manage stakeholders' perceptions through cohesive and unified communication strategies. It goes beyond crisis response, encompassing ongoing initiatives that gradually shape and influence attitudes. • Reputation management in India is a complex endeavor, influenced by the rapid evolution of technology and the diverse cultural landscape. Several challenges and issues shape the context of reputation management in the country. (Note: The above given case is entirely fictional and created for illustrative purposes. Real-life situations may vary, and it's essential for brands to tailor their reputation management strategies based on their unique circumstances and market dynamics.) 4.7 QUESTIONS: Multiple Choice Questions 1. What is the primary goal of reputation management within the realm of Integrated Marketing Communication (IMC)? A) Increasing sales. B) Building a diverse product portfolio. C) Maintaining, enhancing, and influencing perceptions. D) Reducing operational costs. 2. Which of the following is NOT a component that reputation management under IMC involves coordinating? A) Marketing B) Public relations C) Social media D) Inventory management 3. According to John Doorley and Helio Fred Garcia, what does reputation management involve? A) Randomly addressing stakeholder perceptions. munotes.in
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B) Proactively shaping stakeholder perceptions. C) Ignoring stakeholders' views. D) Focusing solely on crisis management. 4. Which definition of reputation management highlights the use of social media to strengthen networks and enhance positive content? A) John Doorley and Helio Fred Garcia's definition. B) Michael Fertik and David C. Thompson's definition. C) Daniel Diermeier's definition. D) Gini Dietrich's definition. 5. According to Daniel Diermeier, how is reputation management best described? A) Passive and unchangeable. B) Isolated and reactive. C) Actively shaping stakeholders' perceptions. D) Limited to crisis management. 6. Which aspect does Gini Dietrich's definition of reputation management emphasize? A) Coordinating various communication efforts. B) Building a diverse product portfolio. C) Monitoring and addressing company risks. D) Reducing operational costs. 7. What is one potential consequence of the rapid spread of negative information through social media platforms? A) Increased customer loyalty. B) Improved brand awareness. C) Amplified reputational issues. D) Reduced online presence. 8. Why can a minor issue escalate into a major reputation crisis overnight? A) Lack of internet penetration. B) Limited use of social media. munotes.in
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46 Integrated Marketing Communiucation C) Rapid spread of content. D) Controlled narrative. 9. How can misinformation and fake news impact reputation management? A) They enhance credibility. B) They lead to increased trust. C) They harm reputations and credibility. D) They have no effect on perceptions. 10. What challenge does lack of control pose for reputation management? A) Ensuring positive customer experiences. B) Effectively managing social media platforms. C) Gaining customer loyalty. D) Controlling the narrative and addressing negative reviews. 11. Why is the speed of response crucial in reputation management? A) To control stakeholder perceptions. B) To build a diverse customer base. C) To navigate cultural differences. D) To prevent further damage during a crisis. 12. What might be a consequence of differing stakeholder perceptions in a diverse country like India? A) Enhanced brand consistency. B) Improved crisis management. C) Alignment of advertising campaigns. D) Offensive advertising campaigns. Solution: 1- C, 2- D, 3- B, 4- B, 5- C, 6- C, 7- C, 8- C, 9- C, 10- D, 11- D, 12- D Long Questions 1. What do you mean by Reputation Management? Explain its issues and challenges with examples. 2. Case Study: Managing Reputation in Integrated Marketing Communication munotes.in
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Problem: A popular consumer electronics company, TechKnow, has been experiencing a sudden drop in customer satisfaction scores and a surge in negative online reviews. This decline in reputation has raised concerns among the company's stakeholders and is affecting its sales. TechKnow's integrated marketing communication (IMC) strategy needs to address these reputation challenges to regain customer trust and loyalty. 4.8 REFERENCES • Doorley, J., & Garcia, H. F. (2011). Reputation management: The key to successful public relations and corporate communication. • Fertik, M., & Thompson, D. C. (2015). The reputation economy: How to optimize your digital footprint in a world where your reputation is your most valuable asset. • Diermeier, D. (2011). Reputation rules: Strategies for building your company's most valuable asset. • Dietrich, G. (2014). Spin sucks: Communication and reputation management in the digital age. munotes.in
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48 Integrated Marketing Communiucation 5 PROMOTIONAL CAMPAIGN Unit Structure: 5.0 Objectives 5.1 Sales Promotion 5.2 Managing Consumer Promotion 5.3 Managing Trade Promotion 5.4 Summary 5.5 Case Let 5.6 Question 5.6 Reference 5.0 OBJECTIVES 1. To understand the concept of sales promotion. 2. To know about the tools and importance of sales promotion. 3. To acquire knowledge about how to manage consumer promotion and trade promotion. 5.1 SALES PROMOTION • Sales Promotion- Meaning Every business owner aims to enhance the sales of the products they deal with, and there are numerous strategies available to achieve this goal. You might be familiar with approaches like "Karodpati Bano," "Win a Tour to Dubai," "Get 20% Extra in a One-Kilogram Pack," or "Scratch the Card and Win a Prize." Additionally, you may have come across incentives such as complimentary lunch boxes, pencil boxes, pens, shampoo pouches, etc., offered alongside certain products. Another strategy involves exchange offers, where you can trade in your existing TV model for a discounted price on a new one. You might also have noticed signs in local markets announcing "Winter Sale," "Summer Sale," "Trade Fairs," and "Up to 50% to 60 % Discount," all designed to attract customers to purchase specific products. These marketing tactics are incentives provided by manufacturers or dealers to stimulate increased sales of their merchandise. Such incentives can take various forms, including free samples, gifts, discount coupons, live demonstrations, shows, and contests. Typically, these measures motivate customers to make more munotes.in
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purchases, thus driving up the overall sales of the product. This approach to promoting sales is referred to as "Sales Promotion." You're already familiar with advertising from previous lessons, which is another effective tool for boosting product sales. In fact, advertising serves as a means of communication to inform potential customers about the various incentives available through sales promotions. The term "Promotion" finds its origins in the Latin word "Promovere," which signifies moving forward. Within the realm of promotional mix, sales promotion stands as one of the three key pillars, alongside personal selling and advertising. Acting as a pivotal bridge, sales promotion serves as the connecting link between personal selling and advertising. It holds a significant role as a specialized function within the field of marketing. Sales promotion encompasses short-term, non-recurring strategies aimed at accelerating sales in different ways. These offers are not available to customers throughout the year; rather, they are often introduced during festivals, the end of seasons, year-end periods, and other special occasions. In essence, sales promotion encompasses all activities beyond advertising and personal selling that contribute to increasing the sales of a specific product. Definition • According to Philip Kotler: "Sales promotion consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade." The above definition of sales promotion highlights that it involves a range of incentive methods, often for a limited period. These methods are intended to encourage consumers or businesses to buy specific products or services more rapidly or in larger quantities. In essence, sales promotion employs various tactics to create a sense of urgency or increased value, driving immediate purchasing behavior. • David Ogilvy defines sales promotion as: "Sales promotion includes those marketing activities, other than personal selling, advertising, and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows, and expositions, demonstrations, and various non-recurrent selling efforts not in the ordinary routine." The above definition of sales promotion encompasses all marketing endeavors beyond personal selling, advertising, and publicity. It encompasses activities that enhance consumer buying and dealer performance, such as displays, exhibitions, demonstrations, and other unique, non-repetitive sales efforts. In essence, sales promotion involves a range of strategies aimed at motivating both customers and dealers, going beyond routine marketing methods. munotes.in
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50 Integrated Marketing Communiucation • According to American Marketing Association (AMA): "Sales promotion encompasses the activities of direct inducement, offering added value or incentive for the product to resellers, salespersons, or consumers. Sales promotion includes all those activities which encourage customers to purchase the products." • Importance of Sales Promotion In today's competitive business landscape, the survival of a business relies on effective sales. Marketing efforts, like advertising and personal selling, might fall short in driving sales. Therefore, sales promotion becomes crucial to attract customers and boost product sales. The significance of sales promotion can be understood from both manufacturers' and consumers' perspectives. • For Manufacturers 1) Increasing Profits: Sales promotion enhances sales in competitive markets, leading to increased profits. 2) Product Introduction: It aids in introducing new products by capturing potential customers' attention. 3) Quick Stock Disposal: It swiftly disposes of existing stocks during product launches or changing consumer preferences. 4) Customer Retention: Sales promotion helps retain customers, preventing them from switching to competitors' brands. • For Consumers 1) Cost Benefits: Consumers enjoy reduced product prices through sales promotions. 2) Financial Gains: Prizes and travel rewards provide financial benefits to customers. 3) Informed Choices: Sales promotions offer comprehensive information about product quality, features, and uses. 4) Confidence in Quality: Schemes like money-back offers instill consumer confidence in product quality. 5) Improved Lifestyle: By trading in old items for newer ones, consumers elevate their standard of living and social image. • Tools of Sales Promotion Sales promotion employs a variety of tools to incentivize consumers and trade partners, stimulating immediate sales and enhancing brand awareness. Let us know more about some of the commonly used tools of sales promotion. 1. Coupons: Coupons are vouchers that offer discounts or special deals to customers when purchasing a product. They encourage repeat purchases and provide an extra incentive to buy. For instance, munotes.in
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companies like Domino's Pizza often distribute coupons offering discounts on specific menu items to drive sales. 2. Discounts: Discounts involve reducing the regular price of a product for a limited time. This creates a sense of urgency and entices customers to make a purchase. Big Bazaar, a popular retail chain in India, frequently offers "Big Bazaar Mahabachat Sale" where they provide significant discounts on a wide range of products. 3. Free Samples: Distributing free samples allows consumers to try a product before buying, increasing their confidence in its quality. Brands like Dabur often distribute free samples of their new herbal healthcare products to potential customers. 4. Contests and Sweepstakes: Organizing contests or sweepstakes engages consumers in fun activities with the chance to win prizes. Maggi, a brand under Nestlé, ran a "Maggi Millionaire Contest," where customers could win a million rupees by participating and sending in unique codes from Maggi packs. 5. Buy One Get One (BOGO) Offers: BOGO offers provide an additional product for free or at a reduced price when a customer purchases one. This encourages larger purchases and provides value for money. Many apparel brands in India offer BOGO deals during festive seasons. 6. Loyalty Programs: Loyalty programs reward repeat customers with points, discounts, or exclusive offers. Starbucks' "My Starbucks Rewards" program in India grants customers points for every purchase, leading to free drinks and discounts. 7. Gifts with Purchase: Offering free gifts or premiums with a purchase encourages customers to buy a specific product. Garnier, a cosmetics brand, often offers free tote bags or makeup pouches with the purchase of specific beauty products. 8. Referral Programs: These programs incentivize customers to refer friends or family to the brand. By doing so, they receive rewards or discounts. Online food delivery platforms like Zomato offer referral bonuses to users who invite new customers to use the app. 9. Cashback Offers: Cashback promotions provide customers with a percentage of their purchase amount back in the form of cash or vouchers. E-commerce platforms like Amazon and Flipkart frequently offer cashback on specific products or payment methods. 10. Seasonal Sales: Brands often hold special sales during festive seasons, such as Diwali or Christmas, to capitalize on increased consumer spending. Flipkart's "Big Billion Days" and Amazon's "Great Indian Festival" are prominent examples of such sales. 11. Trade Promotions: Sales promotions targeted at trade partners, such as retailers and wholesalers, help ensure product visibility and munotes.in
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52 Integrated Marketing Communiucation availability. For instance, FMCG companies provide trade incentives like extra discounts to retailers for purchasing larger quantities of their products. These sales promotion tools are strategically employed by businesses to attract customers, increase sales, and enhance brand loyalty. By tailoring these tools to the preferences of the Indian consumer market, brands can effectively drive short-term sales and long-term customer engagement. 5.2 MANAGING CONSUMER PROMOTION Consumer promotions encompass a range of incentive strategies designed to stimulate consumer-level product or service usage. You may recall encountering various examples of these schemes, such as over-the-counter giveaways, price reductions, quantity discounts, sampling, in-package premiums, banded premiums, container-based rewards, self-liquidating premiums, coupons, personality-linked rewards, refund offers, trading stamps, contests, and lucky draws. In addition to devising an inventive and imaginative scheme that aligns with the predefined sales promotion objectives, it's crucial to recognize that the effectiveness of the scheme is equally reliant on how well it is planned and executed. For the successful management of consumer promotions, sales promotion managers should take into account the following key considerations. These checkpoints, separately applicable to consumer schemes and consumer contests, are outlined as follows: A) Organizing Consumer Schemes • Objectives of Consumer Schemes • To enhance sales stability by mitigating fluctuations in sales patterns. • To expedite the movement of slow-selling products and accelerate their turnover. • To counteract seasonal sales declines and maintain consistent consumer interest. • To efficiently clear out inventory of older products, creating space for new product introductions. • To stimulate sales of specific pack sizes or within designated markets. • To respond effectively to competitive maneuvers and maintain market presence. • To foster goodwill and camaraderie by participating in festive occasions and celebrations. munotes.in
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• To amplify product visibility at the point of sale, capturing consumer attention. • To incentivize trade partners to take a more active role in promoting and selling the product. • To facilitate the successful launch of new products, generating initial momentum and consumer interest. • Scheme Selection The choice of a scheme should prioritize innovation and uniqueness to achieve the designated objectives. For instance, while a price-off scheme can effectively clear inventory at the retail level, promoting a specific pack size benefits from schemes like in-pack or banded premiums, which have demonstrated positive outcomes. It's important to recognize that a consumer scheme successful for one product might not work for another. Also, the success in one market or in the past doesn't guarantee similar outcomes elsewhere or in the future. Additional points of emphasis include: • Ensuring consumer promotion reaches end consumers, considering challenges like trader practices and transportation losses. • Ensuring availability of premiums at retail points throughout the scheme's duration, requiring accurate forecasting and reliable sourcing. • Handling issues of non-availability and varying quality of premium items to uphold the brand's perceived quality. • Scheme Execution Given varying state tax structures, target market selection for the scheme should encompass neighboring satellite markets to prevent leakage. For schemes involving coupons, personality premiums, and refund/rebate offers, assigning specific personnel at field/regional offices is crucial to expedite processing and minimize consumer doubts and delays. • Promoting the Promotion Effective promotion is vital to accomplish scheme objectives. Apart from consumer-level action-generating media campaigns, trade persuasion is essential. The trade partners should understand the merits of the scheme and their role in it. Additionally, the salesforce should be well-informed to manage the scheme effectively and motivated to embrace it, ensuring extra efforts are exerted at the marketplace. • Follow-up munotes.in
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54 Integrated Marketing Communiucation For optimal scheme performance, continuous monitoring is essential after the scheme's commencement. Monitoring should encompass brand and premium availability, visibility area, store-wise daily brand movement, and competitor responses. Timely adjustments such as reminder advertisements, additional point-of-purchase materials, and salesforce deployment might be necessary to prevent the scheme from misfiring. Thus, a contingency plan for such situations should be prepared. B) Organizing Consumer Contest Consumer contests involve inviting individuals to participate in competitions based on their creative skills. Typically spanning a period of five weeks or more, these contests aim to generate heightened awareness and enthusiasm for the sponsor and/or their brand. While consumer contests can fulfill several sales promotion objectives outlined earlier, there are specific objectives for which they are particularly well-suited. These objectives include: • Reviving interest in stagnant or declining brands • Increasing product usage and encouraging purchases of larger pack sizes • Introducing new products • Educating consumers about unique aspects of the brand and its usage • Evaluating the effectiveness of advertising through recall, slogan completion, theme visualization, coupon response, etc. • Building a mailing list for database marketing • Generating public enthusiasm and goodwill Several factors contribute to the success of a contest and demand careful consideration: 1) Type of Contest Popular contest types include reason why, sentence completion, brand name/slogan/essay writing, and contests involving special skills such as sewing, knitting, and cookery. Regardless of the chosen type, the contest should be engaging and easy to attract widespread participation. 2) Prize Schedule Consumer contests commonly offer a significant first prize, a few second prizes, more third prizes, and multiple consolation and early bird prizes. To reduce uncertainty for participants, it's advisable to offer well-known brands as prizes. Adhering to the contest's closing date is essential, and extensions, even based on public request, may munotes.in
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be viewed negatively. The gap between the closing date and result announcement should be minimized and advertised. 3) Advertising and Promotion Integrated advertising and promotion efforts targeting consumers, trade partners, and the salesforce are crucial for contest success. Media advertising complemented by retail-level displays and point-of-purchase materials, along with active market touring by the salesforce, boost public participation. Repetition of advertisements and intensified reminder ads towards the contest's end are effective strategies. Announcing early bird prize winners stimulates early and increased participation. 4) Consumer Contest Rules Clarity in contest rules is paramount for smooth conduct. Rules should address aspects such as: • Finality of judges' decisions • Notification of winners and its method • Treatment of submitted entries (return or sponsor's property) • Originality requirement for entries, where applicable Incorporating reputable judges, public figures, and clear rules contribute to a well-organized contest. Judges' decisions are binding, and notifications are clearly outlined. Entries' originality is emphasized, and rules ensure fair and transparent conduct. 5.3 MANAGING TRADE PROMOTION Trade promotions encompass incentive schemes offered to distributive trade entities like wholesalers, distributors, and retailers, with the intention of motivating increased support for the sponsored brand. Some examples of trade promotion schemes include dealer loaders, merchandise deals, allowances, discounts, coupons, shelf-space incentives, display contests, sales contests, gifts, cooperative allowances, premiums, and provision of point-of-purchase (P.O.P.) material. Effectively managed trade promotions play a crucial role in boosting customer traffic at retail points, elevating sales, enhancing profitability, and fostering strong manufacturer-trade relationships. While trade promotions aim to enhance cooperation and relationships between manufacturers and the trade, conflicts have arisen due to unmet expectations. For effective management of trade promotions, clarity in understanding each party's roles and goals is vital. Manufacturers should recognize the trade's economic objectives, and the trade should acknowledge the cost constraints faced by manufacturers. Key considerations for organized trade promotions include: munotes.in
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56 Integrated Marketing Communiucation 1. Tailoring trade promotion schemes to suit different trade members' capabilities. 2. Offering schemes and terms that discourage unhealthy trade practices. 3. Effectively communicating and convincing the trade about scheme workings and expected results. 4. Ensuring consistent product supplies and gift availability during the promotion. 5. Securing prominent dealer agreements and shelf-space bookings well in advance. 6. Offering reputable branded gifts that are relevant for household or personal use. 7. Organizing dealer display and sales contests, similar to consumer contests, with emphasis on selecting prominent dealers, providing assistance for creative displays, and establishing judging criteria. 8. Ensuring P.O.P. material use through consistent supervision and follow-up. 9. Encouraging retail dealers to support the company's product line during the promotional period. 10. Considering Competition Act, 2002 which introduced sections related to unfair trade practices. 5.4 SUMMARY • Sales promotion is derived from the Latin "Promovere," meaning to move forward. It's a vital function in marketing, linking personal selling and advertising. It involves short-term methods to increase sales, often during festivals or special occasions. • Tools of Sales Promotion : Sales promotion employs various tools to incentivize consumers and trade partners. Some common tools include: • Coupons: Vouchers offering discounts on purchases. • Discounts: Temporary price reductions to create urgency. • Free Samples: Distributing product samples for trial. • Contests and Sweepstakes: Engaging consumers with chances to win. • Buy One Get One (BOGO) Offers: Providing an extra product at a discount. • Loyalty Programs: Rewarding repeat customers with discounts. • Gifts with Purchase: Offering free items with a purchase. • Referral Programs: Incentivizing customers to refer others. munotes.in
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• Cashback Offers: Providing cash or vouchers on purchases. • Seasonal Sales: Special sales during festive seasons. • Trade Promotions: Incentives for trade partners like retailers. These tools are tailored to engage the Indian consumer market, effectively driving sales and brand loyalty. • Consumer promotions encompass a variety of incentive strategies aimed at driving consumer-level product or service engagement. These schemes include giveaways, discounts, sampling, premiums, coupons, contests, and more. The success of these schemes depends on effective planning and execution. • Trade promotions encompass incentive schemes offered to distributive trade entities like wholesalers, distributors, and retailers, with the intention of motivating increased support for the sponsored brand. Some examples of trade promotion schemes include dealer loaders, merchandise deals, allowances, discounts, coupons, shelf-space incentives, display contests, sales contests, gifts, cooperative allowances, premiums, and provision of point-of-purchase (P.O.P.) material. 5.5 CASE LET : BOOSTING SALES THROUGH INNOVATIVE SALES PROMOTION Company Overview: YZX Electronics is a well-established consumer electronics brand that specializes in manufacturing and selling a wide range of electronic products, including smartphones, laptops, televisions, and home appliances. With a reputation for quality and innovation, YZX Electronics has a substantial market presence but is facing increased competition in the rapidly evolving electronics industry. Challenge: As competition intensifies and consumer preferences shift quickly, YZX Electronics recognizes the need to revitalize its sales strategy to maintain market share and drive sales growth. The company's leadership believes that an innovative sales promotion campaign can provide the necessary boost to sales while reinforcing the brand's image of innovation and value. Objectives: • Increase short-term sales of XYZ Electronics' products across different categories. • Enhance brand visibility and reinforce the image of innovation and value. • Introduce a new product line to the market effectively. • Build customer loyalty and encourage repeat purchases. munotes.in
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58 Integrated Marketing Communiucation Solution: YZX Electronics devises a comprehensive sales promotion campaign named "TechFest: Embrace Innovation." The campaign is designed to span over a period of six weeks and incorporates a mix of consumer promotions and trade promotions. The campaign's components include: 1) Upgrade Bonanza for Smartphones: Customers who trade in their old smartphones for a new XYZ Electronics smartphone receive an instant discount on the purchase price. The campaign is promoted through social media, online platforms, and in-store displays. The "Upgrade Bonanza" incentivizes customers to upgrade to the latest technology while offering cost savings. 2) Exchange Offer: For customers looking to upgrade their laptops, YZX Electronics introduces a laptop exchange offer. Customers can exchange their old laptops for a brand-new YZX Electronics laptop model and receive a discount based on the age and condition of their old device. This encourages customers to experience the brand's latest technological advancements. 3) Buddle Offers/ Deals Customers purchasing a designated combination of home appliances receive an exclusive bundle deal that includes free accessories, extended warranties, and installation services. This package deal motivates customers to choose multiple products from YZX Electronics' appliance range. 4) Contest: To engage customers and amplify the brand's image of innovation, XYZ Electronics organizes an online contest named "Innovation Quest." Participants are encouraged to submit creative ideas for new product features or improvements. Winners receive exciting prizes, including the opportunity to attend XYZ Electronics' product launch event. 5) Exclusive dealer Incentives: To motivate trade partners, YZX Electronics offers attractive incentives for achieving sales targets during the campaign period. Dealers who exceed their targets receive additional discounts on bulk purchases, priority deliveries, and exclusive training sessions. Results: The "TechFest: Embrace Innovation" campaign generates remarkable outcomes for XYZ Electronics: • Sales Surge: The campaign results in a substantial increase in sales across all product categories, surpassing the company's initial expectations. • Enhanced Brand Image: The campaign successfully reinforces YZX Electronics' brand image as an innovative and customer-centric electronics brand. munotes.in
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• Successful Product Launch: The introduction of a new product line is well-received by the market, gaining significant attention from both existing and new customers. • Customer Loyalty: The innovative contest and appealing promotions foster stronger customer loyalty, encouraging repeat purchases. Conclusion: By strategically combining consumer promotions, trade incentives, and creative contests, YZX Electronics successfully reinvigorated its sales strategy and achieved its objectives of increasing sales, enhancing brand image, and introducing new products. The "TechFest: Embrace Innovation" campaign not only boosted short-term sales but also established a stronger foundation for sustained growth and customer engagement in the competitive electronics industry. 5.6 QUESTIONS Multiple Choice Questions 1. What is the primary goal of sales promotion strategies? A) Building brand awareness B) Enhancing product quality C) Maximizing customer retention D) Increasing sales of products 2. Which of the following is NOT an example of a sales promotion strategy? A) Television advertising B) Discount coupons C) Free samples D) Buy One Get One (BOGO) offers 3. What term is used to describe the approach of exchanging an old product for a new one at a discounted price? A) Referral program B) Buy One Get One (BOGO) offer C) Trade promotion D) Exchange offer 4. Sales promotion serves as a bridge between which two pillars of the promotional mix? A) Advertising and branding B) Personal selling and publicity C) Advertising and personal selling D) Public relations and personal selling munotes.in
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60 Integrated Marketing Communiucation 5. Which term originates from the Latin word "Promovere," signifying moving forward? A) Branding B) Advertising C) Promotion D) Sales 6. What role does sales promotion play in introducing new products to the market? A) It encourages repeat purchases B) It creates a sense of urgency C) It motivates trade partners D) It captures potential customers' attention 7. How does sales promotion benefit manufacturers in competitive markets? A) By introducing new products B) By enhancing brand visibility C) By increasing customer retention D) By boosting profits through increased sales Solution: 1- D, 2- A, 3- D, 4- C, 5- C, 6- 7- D Long Questions 1) Explore the various tools of sales promotion and their significance in achieving marketing objectives. 2) Write a note on Managing Consumer Promotion 3) Write a note on Managing Trade Promotion 5.7 REFERENCES Karunakaran, D. K. (2008). Marketing Management. Himalaya Publishing House. Namakumari, R. (2018). Marketing Management. Sage Publication Ltd. Saxena, R. (2020). Marketing Management (Sixth ed.). McGraw Hill. munotes.in
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61 6 DIRECT MARKETING METHODS Unit Structure: 6.1 Objectives 6.2 Introduction 6.3 Definition and Meaning of Direct Meaning 6.4 Advantages of Direct Marketing 6.5 Limitations of Direct Marketing 6.6 Tools and Techniques of Direct Marketing 6.7 Test Your Knowledge 6.8 Answers 6.9 Questions 6.10 Summary 6.11 Caselet 6.12 References 6.1 OBJECTIVES • To study the concept of direct marketing. • To understand the advantages and limitations of direct marketing. • To study the tools and techniques of direct marketing. 6.2 INTRODUCTION: Direct marketing is an advertising and marketing technique that is distinguished by one or both of two features. First, based on demographic and individualised consumer data, direct marketing targets potential consumers with adverts suited to their interests. Second, rather than simply increasing brand awareness, direct marketing urges the consumer to take a specific action (such as filling out a form or calling a phone number). This "call to action" sets direct marketing apart from ordinary advertising. Catalogue and mail order, product advertising direct mail, political direct mail, direct response cards, coupons, infomercials, telemarketing, and e-mail marketing are all examples of direct marketing. Many documents relating to the creation, execution, and assessment of direct marketing can be found at the Hartman Centre and the Rubenstein Library. These collections include books and serial publications, catalogue and infomercial collections, and the archival records of advertising firms, executives, and select advertisers. They include several instances of direct munotes.in
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62 Integrated Marketing Communiucation mailings, catalogues, and advertisements, as well as evidence of how advertisers considered, implemented, and assessed direct marketing tactics. When the primary subject of a collection is direct marketing, this overview gives an abstract of the collection as well as a link to the collection guide. This overview includes a more thorough explanation of the relevant materials and their location, as well as a link to the collection guide, for collections in which direct marketing materials are only a tiny component. A collection may contain only one or two significant papers in some situations. They have been included in this overview because they give the researcher with a variety of publications, speeches, and essays on direct marketing, typically written by individual advertising firm executives. 6.3 DEFINITION AND MEANING OF DIRECT MARKETING: To put it simply, Direct Marketing is nothing more than getting the message out directly. The Direct Marketing Association (USA) describes it as "an interactive marketing system that uses one or more advertising media to effect a measurable response and/or transaction at any location." We find some essential words in the preceding definition that distinguish Direct Marketing (DM) from other marketing communications disciplines. These key words are: Interactive: One-on-one communication or engagement between a marketer and a prospect/customer One or more advertising media: a synergistic combination of media that is often more effective than any single channel. Measurable Response: It is feasible to accurately quantify response. Transactions can take place anywhere: by phone, at a kiosk, via mail, or in person. Direct Marketing, Direct Mail, Mail Order, Direct Response Advertising: Many people associate Direct Marketing with a medium (Direct Mail), a strategy (Direct Response Advertising), or a distribution channel (Mail Order). In fact, DM is all of these things and much more. According to Drayton Bird, Vice-Chairman and Creative Director of Ogilvy & Mather Direct Worldwide, "it includes any activity whereby you reach your customer or prospect directly and they respond to you directly." 6.4 ADVANTAGES OF DIRECT MARKETING: Direct marketing has the following advantages: • Direct marketing allows people to learn more about products: To persuade consumers to examine the value proposition offered, a targeted sales opportunity may be presented. You are providing them munotes.in
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with the information they need to make an informed decision in a convenient place, such as their office or home. • Direct marketing provides the opportunity to respond to inquiries: A prospect will do up to 90% of the individual research required to be confident in a product. They'll look you up on the internet, compare you to the competition, and look into your reputation. When they contact you, you may use the direct marketing materials you provided them to take care of the remaining 10%. This gives you a far more effective technique to make a sale. • With direct marketing, you may take a more personal approach: In the business world, the significance of a handshake and a smile has been shown time and again. It may not be the same as shaking someone's hand, but if done correctly, the result may be similar when you write a personalized message to them. A conversation between two people is the most effective technique to begin a relationship. Alternatively, you may call a friend. Alternatively, set up a meeting to discuss how what you have can help a prospect address their problems. • Direct marketing is still cost effective: It is impossible to compare how cost effective direct marketing can be when attempting to recruit local clients. What is the cost of dialling a phone number? Alternatively, how much does it cost to print a few pamphlets on your printer and distribute them to individuals in your neighbourhood? If a small business wants to increase its market share, it must explain how it can satisfy expectations and aspirations for such a low cost. • Direct marketing eliminates the problematic middle: Even if you take all of the proper steps, your reputation may suffer owing to the involvement of third parties. Direct marketing cuts out the middleman by bringing you in direct contact with potential clients you may one day service. This indicates that you have greater control over the message that each member of your target audience hears as a result of your marketing efforts. • Because of direct marketing, you can complete it on your own task: Direct marketing does not require a large team to get started. If you have a computer and a printer, you may create marketing materials to reach out to potential customers. Even though response rates are typically low, the ROI from a direct marketing campaign can be quite high, with little to no overhead and just minor expenses required. • Targeting: Based on demographics and purchase trends, you can send specific messaging to customers and potential customer groups. Your campaigns will be more successful if they are more narrowly targeted. • Personalization: Make a personal connection with your audience. A phone conversation might help a customer create a relationship with munotes.in
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64 Integrated Marketing Communiucation your firm. You can send direct mail or emails to specific individuals and even add information such as previous orders. • Low-cost: Techniques such as email marketing and leafleting are frequently performed at a low cost. Direct marketing is often less expensive than mass media advertising for SMEs. 6.5 LIMITATIONS OF DIRECT MARKETING: Following are the limitations of Direct Marketing: • Direct marketing can reach a large number of people who have no interest: Many businesses send direct marketing opportunities to those who are uninterested in what is being offered. When it comes to emails, that is considered spam. While it's in the mailbox, it's referred to as garbage. In terms of your budget, it is considered to be a waste of money. People will delete, discard, or ignore your mails. • Uninvited direct marketing occurs frequently: Because of how intrusive this type of marketing used to be, registers were created to allow customers to stop marketers from reaching them. This type of promotion almost always annoys potential purchasers. When this occurs, the buyer frequently has the sense that you are forcing them into purchasing something they do not want. Even if you pique a prospect's attention, there's a good chance you'll have ruined their impression of the encounter if you don't establish a convincing value proposition. • Direct marketing appears to be excessively disorganized at times: This is especially true for some recent emails or direct mail efforts. It's similar to reading a four-column blog. In reality, you must determine where to begin your search. Because of the misunderstanding that ensues, the prospect will abandon the opportunity presented. • A common issue with direct marketing is low response rates: Direct marketing response rates typically range between one and three percent. However, it is worth noting that the same conversion percentages frequently apply to various internet marketing campaigns. However, in this example, 3% of online conversions were favourable, whereas 3% of direct conversions were unfavourable. Yes, clients will not be interested if they are not interested, and you will have squandered your time and money. In that scenario, low response rates can be difficult to accept. • Direct marketing takes a lot of time: If you're composing a customized message to send to each person on a marketing list that you're addressing, it will take time. Even if this is an excellent strategy, you may find yourself sending hundreds of messages or making thousands of phone calls. Even more work must be invested once trust in employing these strategies has been established. munotes.in
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• Direct marketing has the capacity to quickly propagate negative vibes: Have you ever observed that business seems to like suffering? People are more likely to report negative experiences since they are unexpected. Even if you do everything perfectly, if a consumer expects you to meet their expectations and you do, you will not receive a positive review. When you fail to accomplish that "duty," you share the terrible experience. Then it spreads as a result of others sharing their harrowing experiences. Most direct marketing tactics disrupt people, heightening their dislike. • It takes a lot of perseverance and patience to succeed in direct marketing: The truth is that people will usually take advantage of a great deal if they come across one, but they will only pay the full amount for the product later on for a variety of reasons. Many potential buyers will eventually determine that your supply was insufficient. Even the most successful direct marketers feel like giving up when this happens repeatedly. If you lack patience or find it difficult to maintain consistency in your brand message, this may not be the greatest marketing method to use. • A warm market is usually required to begin direct marketing: For many new businesses, this means marketing to their friends and family. This includes any existing clients you may have. I hope these individuals will serve as brand ambassadors for your company. The truth is that constantly chatting to your core circle of pals can put you in an embarrassing situation. 6.6 TOOLS AND TECHNIQUES OF DIRECT MARKETING: A marketer has several options at his or her disposal for contacting prospective buyers via Direct Marketing. We will go over the primary tools.- 1) Direct mail - This is a message that is mailed to prospective buyers. It could be an announcement, an offer, a reminder, a product (pre-approved credit cards, for example), or anything else. It promotes the company as well as its products and services. Marketers must carefully select buyers and target their messages properly. When emails are sent in bulk, most firms benefit from lower rates. When customers visit a store, the organizations obtain their contact information. For example, several merchants need purchasers to fill out a simple form in order to obtain membership for a low rate. This method, the organization obtains the buyer's contact information as well as his or her preferences. Online shopping sites track visitors' site visits for specific products. The visitor is then often issued a reminder message. "You were interested in x product," for example. It is now available at a reduced price." munotes.in
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66 Integrated Marketing Communiucation 2) Telemarketing: Telemarketing is the process of selling products and services to potential clients over the phone. The firm must rely on well-researched customer data to operate a successful telemarketing campaign. The customer's profile should correspond to the product that the customer may purchase. This is an important tool because it lowers the expense of personal selling and is deemed dependable for following up on direct marketing initiatives. Telemarketing representatives, for example, make follow-up calls after mailing a catalogue or an offer by direct mail to remind and convince buyers to purchase the product or service. Organizations must ensure that their telemarketing staff are well-versed in both products and soft skills. 3) E-mail marketing: This is a low-cost direct marketing tool. Newsletters and promotional offers to boost sales can be included. Marketers can send the message at any time because the customer chooses when to access the email. Most clients are irritated when they receive a telemarketing contact at an inconvenient time. It is very simple and affordable to change the email and send it to many prospective buyers. 4) Mobile Marketing: Mobile marketing entails marketers attempting to reach out to prospective buyers via mobile phone messaging such as SMS, MMS, push notifications, mobile APS, and so on. When a mobile user opens a specific APP, he or she may receive various notifications, advertisements, and so on advertising specific products. The APPs (Applications) identify a person's location and display relevant promotional messages. Organizations work hard to make this instrument as effective and efficient as possible. If a user want to investigate or purchase a certain product, he or she should encounter as little difficulty as possible. 5) Internet marketing/online marketing: The Internet is now used for everything from reading news to purchasing items, communication, information, and building relationships. This provides marketers with an excellent opportunity to reach out to the public directly and individually. Search Engine Optimization is carried out on a wide scale to ensure prominent listings in internet search results. Display Ads such as pop-ups and pop-downs allow buyers to respond directly to the message. Social media services such as Twitter, Facebook, and others are an excellent way to directly reach buyers. Direct mail, newspapers, and other media rarely allow marketers to communicate with buyers. The internet, often known as e-marketing, provides numerous chances to communicate directly with buyers. 6) Catalogue Marketing: Catalogue marketing entails sending potential purchasers product information in the form of a catalogue. These can take the shape of paper media, a CD, or an online link. 7) Direct response marketing: TV, radio, newspapers, magazines, and so on all include advertisements for things that may be ordered by dialling a toll-free number. Almost all TV networks have these kind munotes.in
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of advertisements in which people from various walks of life discuss their experiences with the product and how a person may get the same product exclusively by dialling a toll-free number or sending an email. These commercials might last anywhere from 5 to 60 minutes. Some merchants have their own specialised channel that transmits 24 hours a day, 7 days a week. Consider Home Shopping Network. We hear similar commercials on radio stations. 6.7 TEST YOUR KNOWLEDGE 1. _______ is a form of marketing that attempts to send its messages directly to consumers, without the use of intervening media. A. advertising B. direct marketing C. public relations D. ambush marketing 2. Direct Marketing plays a broader role, that of building _______with the customer by communicating with them regularly. A. short term B. ocassionally C. long term relationship D. generally 3. Direct marketing is a form of marketing that attempts to send its messages directly to consumers, _______ media. A. without intervening B. with mass media C. with advertising media D. with pr media 4. Direct marketing objectives do not include _____. A. selling merchandise for a company B. enhancing a company’s image C. getting people to visit a store D. getting people to inquire about a specific product or service 5. The goal of the direct marketer is to: A. eliminate brand marketing B. interact with the customer on a one-to-one basis C. do everything inexpensively D. use as few channels as possible to get the message out munotes.in
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68 Integrated Marketing Communiucation 6.8 ANSWERS 1) B 2) C 3) A 4) B 5) B 6.9. QUESTIONS Q1. What is direct marketing? Explain the advantages of direct marketing. Q.2 Explain the limitations of direct marketing. Q. 3 Explain the tools and techniques of direct marketing. 6.10 SUMMARY Direct marketing is a targeted advertising technique that involves directly contacting potential customers rather than going through intermediaries such as shops. It enables organizations to connect with specific individuals or groups with the goal of developing relationships, generating leads, and driving sales. Direct marketing has the advantage of being able to provide personalized messages suited to particular recipients, boosting the likelihood of engagement and response. It also allows for precision targeting, letting businesses to concentrate their efforts on the most relevant audience segments. Direct marketing produces measurable results since the results are easily recorded and analyzed. It does, however, have restrictions. Direct marketing can be obtrusive if not done correctly, which can lead to bad customer perceptions. Furthermore, efficient targeting necessitates a thorough and up-to-date database of client information. Despite these constraints, direct marketing provides a variety of tools and approaches to improve its efficacy. Direct mail campaigns, telemarketing, email marketing, mobile marketing, and social media advertising are examples of these. Furthermore, technology improvements have resulted in novel technologies such as customer relationship management (CRM) systems, marketing automation software, and data analytics tools, which aid in the optimisation of direct marketing efforts, the streamlining of processes, and the improvement of overall campaign performance. 6.11 CASELET Caselet 1: A Case Study on XYZ Company Introduction: Direct marketing is a marketing strategy that involves reaching out to potential customers directly, without intermediaries, to promote products or services. This case study focuses on XYZ Company, a fictional e-commerce company, to explore how they implemented direct marketing techniques to drive customer engagement, increase sales, and enhance overall business performance. munotes.in
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Background: XYZ Company is an online retailer that specializes in selling consumer electronics. The company faced challenges in reaching its target audience effectively and increasing its market share in a competitive industry. To overcome these obstacles, XYZ Company decided to implement a comprehensive direct marketing campaign. Objectives: The primary objectives of XYZ Company's direct marketing campaign were as follows: • Increase brand awareness among the target audience. • Drive traffic to the company's website and boost online sales. • Improve customer retention and loyalty. • Gather customer data for personalized marketing efforts. • Measure and evaluate the effectiveness of the direct marketing campaign. Target Audience: XYZ Company identified its target audience as tech-savvy individuals aged 18-35, residing in urban areas, and with a preference for online shopping. They segmented the audience further based on their interests, spending habits, and previous purchasing history. Direct Marketing Strategies Implemented: a. Email Marketing: XYZ Company developed a customer database and launched a targeted email marketing campaign. They sent personalized emails to different segments of their audience, highlighting new product launches, exclusive discounts, and personalized recommendations based on customer preferences. b. Direct Mail: To further engage potential customers, XYZ Company used direct mail campaigns. They sent product catalogs, promotional flyers, and discount coupons to selected segments of their target audience. The mailings were tailored to the recipients' interests and past purchase history. c. Telemarketing: XYZ Company implemented a telemarketing campaign, making personalized calls to potential customers. The telemarketers informed customers about ongoing promotions, answered product-related munotes.in
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70 Integrated Marketing Communiucation queries, and encouraged them to visit the company's website or make a purchase. d. Social Media Advertising: To reach a wider audience, XYZ Company utilized social media advertising on platforms like Facebook, Instagram, and Twitter. They created engaging and visually appealing ad campaigns, targeting individuals who matched their customer profile. The ads showcased products, highlighted unique features, and provided direct links to purchase. Results and Impact: XYZ Company's direct marketing campaign yielded significant results: Increased website traffic: The campaign led to a 30% increase in website visits within the first three months. Higher sales conversion: Direct marketing efforts resulted in a 20% increase in online sales. Improved customer engagement: The personalized nature of the campaign led to a 15% increase in customer engagement and interaction with the company's brand. Enhanced customer loyalty: Repeat purchases increased by 25%, indicating improved customer loyalty and retention. Data acquisition: The campaign helped XYZ Company gather valuable customer data, enabling them to refine their marketing strategies and provide personalized recommendations. Evaluation and Lessons Learned: XYZ Company evaluated the direct marketing campaign through various metrics, including website analytics, sales data, customer feedback, and survey responses. The evaluation helped identify strengths and areas for improvement. Lessons learned from the campaign included the importance of targeted messaging, personalization, and ongoing customer data analysis to optimize future direct marketing efforts. Conclusion: Through a comprehensive direct marketing campaign, XYZ Company successfully increased brand awareness, engaged customers, and drove sales. The case study highlights the effectiveness of direct marketing strategies in reaching and influencing the target audience. By leveraging personalized communication channels and analyzing customer data, XYZ Company achieved its marketing objectives and improved overall business performance munotes.in
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Caselet 2: Direct Marketing Methods for a Fitness Studio Introduction: This caselet explores the direct marketing methods employed by FitPlus, a local fitness studio, to attract new customers, increase membership sign-ups, and foster customer loyalty. FitPlus faced challenges in standing out in a crowded fitness market and sought to leverage direct marketing strategies to achieve its goals. Background: FitPlus is a newly established fitness studio located in a metropolitan area. The studio offers a variety of fitness classes, personal training sessions, and wellness programs. To compete with well-established gyms and attract a steady stream of customers, FitPlus decided to implement direct marketing methods. Direct Marketing Methods: Targeted Email Campaign: FitPlus created a database of potential customers by collecting email addresses through sign-up forms at the studio and online promotions. They developed personalized email campaigns to engage and nurture leads. The emails included information about upcoming classes, special offers, success stories from current members, and exclusive discounts for signing up. Direct Mail: To reach potential customers beyond the digital realm, FitPlus utilized direct mail campaigns. They partnered with local mailing services to send brochures, flyers, and postcards to targeted households in nearby neighborhoods. The mailings included attractive visuals, compelling offers, and a call-to-action to visit the studio or sign up for a trial session. Referral Program: FitPlus implemented a referral program to incentivize existing members to refer friends and family. Members were provided with personalized referral codes and were rewarded with discounted membership fees or other exclusive perks for each successful referral. The program encouraged word-of-mouth marketing and leveraged existing customers as brand ambassadors. SMS Marketing: FitPlus implemented SMS marketing as a direct and immediate communication channel. They collected phone numbers from customers during registration and used text messages to send time-sensitive offers, reminders about upcoming classes or events, and motivational messages. munotes.in
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72 Integrated Marketing Communiucation The SMS marketing campaign aimed to keep FitPlus top-of-mind and engage customers on a regular basis. Personalized Phone Calls: FitPlus assigned staff members to make personalized phone calls to potential customers who had shown interest by visiting the studio or participating in trial sessions. The staff members provided additional information, answered questions, and offered exclusive discounts or incentives to encourage sign-ups. These personalized phone calls helped build a personal connection and addressed specific customer needs. Results and Impact: Increased Membership Sign-ups: The direct marketing methods employed by FitPlus resulted in a significant increase in membership sign-ups. The targeted email campaigns and direct mailings contributed to a 40% growth in new members within the first three months of implementation. Higher Customer Retention: The referral program and SMS marketing initiatives helped improve customer retention rates. Existing members were more likely to refer others, resulting in a 25% increase in referrals and a higher sense of community within the fitness studio. Improved Engagement and Attendance: The personalized phone calls and SMS reminders increased customer engagement and class attendance. FitPlus observed a 15% increase in class participation and a decrease in no-show rates, leading to a more active and committed member base. Positive Brand Perception: The direct marketing methods employed by FitPlus enhanced its brand perception. The personalized approach and regular communication fostered a sense of care and dedication, positioning FitPlus as a trustworthy and customer-centric fitness studio. Lessons Learned: Targeted Messaging: Personalized and relevant messaging is crucial for effective direct marketing campaigns. Understanding the customer's needs and tailoring the communication accordingly increases the likelihood of engagement and conversion. Multi-channel Approach: Utilizing multiple direct marketing channels, such as email, direct mail, SMS, and phone calls, allows for a broader reach and ensures a higher chance of connecting with the target audience. munotes.in
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Incentivized Referral Programs: Encouraging existing customers to refer new customers through incentives creates a win-win situation and drives word-of-mouth marketing. Consistent Follow-up: Regular and timely follow-ups through SMS and personalized phone calls help maintain customer interest and establish a strong relationship. Conclusion: FitPlus successfully implemented various direct marketing methods to attract new customers, increase membership sign-ups, and foster customer loyalty. By leveraging targeted email campaigns, direct mailings, referral programs, SMS marketing, and personalized phone calls, FitPlus achieved significant growth, improved engagement, and enhanced brand perception in a competitive fitness market. 6.12 REFERENCES: Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing management: an Asian perspective. Harlow: Pearson. Saxena, R. (2005). Marketing management. Tata McGraw-Hill Education. Karunakaran, K. (2008). Marketing management. Himalaya Publishing House. Percy, L. (2023). Strategic integrated marketing communications. Taylor & Francis. Juska, J. M. (2021). Integrated marketing communication: advertising and promotion in a digital world. Routledge. Broderick, A., & Pickton, D. (2005). Integrated marketing communications. Pearson Education UK. munotes.in
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74 Integrated Marketing Communiucation 7 MEDIA PLANNING Unit Structure: 7.1 Objectives 7.2 Introduction 7.3 Concept of Media and Message 7.4 Media Objectives 7.5 Definition and Meaning of Media Planning 7.6 Media Planning Process 7.7 Media Scheduling 7.8 Media Planning Implementation 7.9 Test Your Knowledge 7.10 Answers 7.11 Questions 7.12 Summary 7.13 Caselet 7.14 References 7.1 OBJECTIVES • To study the concept of advertising. • To understand the objectives of advertising. • To understand the importance of advertising. • To study the concept of media. • To study the different types of media. 7.2 INTRODUCTION The many channels and platforms through which marketers send their brand messaging to the target audience are referred to as media in the context of Integrated Marketing Communications (IMC). The media plays an important part in IMC since it serves as a vehicle for communication as well as a means of reaching and engaging with the target recipients of the marketing message. munotes.in
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IMC media might include both traditional and digital platforms. Television, radio, newspapers, magazines, outdoor billboards, and direct mail are examples of traditional media. These channels have long been utilized for mass communication and have a broad reach, allowing marketers to reach a large number of people. Digital media, on the other hand, refers to the online platforms and channels that have grown in popularity as the internet and technology have grown. Websites, search engines, social networking platforms, email, mobile apps, online display advertising, and streaming platforms are all examples. Digital media enables marketers to reach out to specific segments and individuals based on their interests, demographics, and behaviours. In IMC, media selection is an important decision that is influenced by criteria such as target audience, marketing objectives, budget, message complexity, and desired reach and frequency. Marketers must carefully analyze the features and effectiveness of various media channels to ensure that their brand message reaches the correct audience in the most effective way. Furthermore, media planning and buying are critical components of IMC, encompassing actions like as defining the best media mix, deciding the best timing and frequency of commercials, negotiating media rates and placements, and monitoring the performance of media campaigns. The definition of media in IMC goes beyond the simple dissemination of communications. It entails the strategic planning, selection, and use of media channels in order to establish harmony and consistency in brand communication across many touch-points. To provide a consistent and cohesive brand experience, effective media management in IMC entails combining media activities with other communication components like as advertising, public relations, sales promotion, and direct marketing. 7.3 MEDIA AND MESSAGE CONCEPT The concept of media and message play an important role in communication and advertising. The term "media" refers to the numerous channels or platforms through which communications are sent in order to reach a certain audience. Print, broadcast, and outdoor advertising are examples of classic types of media, as are digital platforms such as websites, social media, and mobile applications. The message, on the other hand, is the content or information transmitted by the selected media medium. It is the central part of communication that conveys the intended message, promotes a product or service, or attempts to affect the audience's perceptions, attitudes, or behaviours. Effective communication requires the use of proper medium as well as the creation of a compelling message. When deciding which media outlets will effectively communicate their message, marketers must evaluate the qualities of their target demographic, the aims of their campaign, and the nature of the product or service being promoted. munotes.in
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76 Integrated Marketing Communiucation Furthermore, the message should be tailored to the selected media outlet and resonate with the target demographic. It should be clear, brief, relevant, and convincing, with the goal of capturing the audience's attention, generating interest, eliciting emotions, and eventually driving the intended response or action. The media and message idea emphasizes the significance of selecting the appropriate media outlets and producing an impactful message that effectively connects with the intended audience. Marketers can design strong and engaging advertising campaigns that break through the noise and reach their desired communication objectives by understanding the relationships between media and message. 7.4 OBJECTIVES OF MEDIA Media objectives might vary based on the specific circumstances and goals of a single organization or campaign. However, some common media purposes include: 1. Reach and Exposure: The goal of media is to reach a large audience and maximize exposure for the message or material being transmitted. This goal is to ensure that the message reaches as many individuals as possible in order to raise awareness, boost brand presence, and maximize interaction potential. 2. Targeted population: Media can be used to reach a certain demographic or target population. This goal entails identifying media channels and platforms that efficiently reach the target audience based on criteria such as age, gender, location, interests, or behaviour. The goal of targeted audience objectives is to send personalized communications to a specified group in order to increase engagement and response. 3. Communication and Information: Media is used to communicate and disseminate information. Communication goals include effectively conveying messages, sharing information, educating the audience, and creating understanding or awareness about a product, service, or issue. This goal emphasizes the clarity, correctness, and relevancy of the information conveyed. 4. Persuasion and Influence: Media can be utilized to influence and convince people's attitudes, beliefs, views, and behaviours. Influence and persuasion objectives strive to affect or shape the audience's perceptions, preferences, and decision-making processes. This goal is frequently focused on developing a positive brand image, raising interest, pushing certain behaviours, or increasing sales. 5. Engagement and Interaction: Media can help organizations and their audiences engage and interact. Engagement objectives seek to stimulate active participation, contact, and dialogue. This can be accomplished through the use of social media, interactive marketing, munotes.in
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contests, polls, or other types of user-generated material, which fosters a feeling of community and helps to establish relationships. 6. Return on Investment (ROI): Media goals can also be linked to a positive return on investment. This goal focuses on optimizing media strategy and resource allocation to maximize the efficacy and efficiency of media campaigns. It entails tracking and analyzing key performance indicators (KPIs) such as reach, engagement, conversion rates, and sales to ensure that media initiatives generate a positive return on investment. The goals and ambitions of a given organization or campaign may influence media objectives. Organizations may coordinate their media strategies, methods, and metrics by defining clear objectives. This ensures that they effectively communicate with their target audience, achieve desired outcomes, and ultimately contribute to overall business success. 7.5 DEFINITION AND MEANING OF MEDIA PLANNING: Media planning is the process of deliberately selecting and utilizing numerous media channels and platforms to successfully convey advertising messages to a target audience. It entails selecting the most appropriate media vehicles, calculating optimal media placement, and allocating financial resources in such a way that the advertising campaign's reach and impact are maximized. The foundation of media planning is a detailed grasp of the target audience, including demographics, media consumption habits, and preferences. This audience study aids in evaluating which media outlets are most likely to effectively reach and engage the desired audience. Some philosophers' definitions of media planning are as follows: According to Wells Burnett, "Media planning is a decision process regarding the use of advertising time and space to assist in the achievement of marketing objectives." According to S.W. Dunn, "media planning is the process of determining how to use media time and space to achieve advertising objectives." The following 5 Ws are addressed in media planning:
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7.6 MEDIA PLANNING PROCESS The media planning process consists of several significant steps: 1. Establishing Objectives: The first step in media planning is to define the objectives and aims of the advertising campaign. This includes determining the campaign's desired reach, frequency, message exposure, and outcomes. 2. Audience Research: Conducting in-depth research and analysis to get insights into the demographics, behaviour, media consumption patterns, and preferences of the target audience. This study assists in determining which media outlets the target audience is most likely to use. 3. Media Selection: Based on audience research, media planners choose the most relevant media channels and platforms to successfully reach the target audience. Traditional media such as television, radio, print, and outdoor advertising can be included, as well as digital media channels such as websites, social media, and mobile applications. 4. Media Mix: Creating a balanced and effective media mix by allocating the advertising budget optimally across multiple media channels. The media mix is intended to guarantee that the advertising message reaches the target audience via many touchpoints and that the campaign's impact is maximized. 5. Media Purchasing and Negotiation: After identifying the media channels and placements, media planners negotiate with media suppliers to acquire the best rates and placement chances for the advertising campaign. Considerations include audience reach, cost, ad placement, and available inventory. 6. Monitoring and Optimization: Media planners regularly evaluate the performance of media placements, measure important indicators, and make adjustments as needed during the campaign. This includes adjusting the media strategy based on real-time data, audience response, and campaign goals.
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The purpose of media planning is to develop an effective and efficient media strategy that guarantees the right message reaches the right audience at the right time and through the right media channels. To obtain the intended advertising results, a careful analysis of audience behaviour, media possibilities, budget considerations, and constant monitoring and optimization are required. 7.7 MEDIA SCHEDULING: Media scheduling refers to the strategic planning and coordination of various media channels and their respective advertising or content placements over a specific period. It involves determining the optimal timing, frequency, and duration of media placements to reach the intended target audience effectively. Media scheduling is an essential component of a marketing or advertising campaign and aims to maximize the impact and reach of a brand's message. The process of media scheduling typically involves the following steps: Define campaign objectives: Start by clearly outlining the goals and objectives of the campaign. This could include increasing brand awareness, driving website traffic, boosting sales, or reaching a specific target audience. Identify target audience: Conduct thorough research and analysis to identify the target audience for the campaign. This includes understanding their demographics, behavior patterns, media consumption habits, and preferred channels. Select media channels: Based on the target audience profile and campaign objectives, choose the most appropriate media channels to reach and engage with your target audience effectively. This could include television, radio, print, outdoor billboards, online advertising (display ads, search engine marketing, social media), or a combination of these channels. Determine media budgets: Allocate appropriate budgets to each selected media channel based on their effectiveness, reach, and cost. Consider factors such as channel popularity, audience reach, and pricing models (e.g., cost per thousand impressions or cost per click). Set scheduling parameters: Determine the timing and frequency of media placements. This involves deciding when and how often advertisements or content will appear on each selected channel. Consider factors such as the target audience's media consumption habits, peak viewing or listening times, and competitor activities. Negotiate and book placements: Contact the media outlets or advertising agencies to negotiate and secure the desired media placements. This includes negotiating prices, confirming availability, and signing contracts or insertion orders. munotes.in
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80 Integrated Marketing Communiucation Monitor and optimize: Continuously monitor the performance of media placements throughout the campaign. Track key metrics such as reach, frequency, impressions, click-through rates, and conversions. Use the data and insights gathered to optimize the scheduling strategy and make any necessary adjustments or refinements. Evaluate and analyze: After the campaign concludes, evaluate the overall effectiveness and impact of the media scheduling strategy. Analyze the results against the defined objectives and key performance indicators. Identify successes and areas for improvement to inform future media scheduling decisions. It's worth noting that the specific approach to media scheduling may vary depending on factors such as the nature of the campaign, budget constraints, target audience preferences, and the availability of data and analytics tools. Advanced technologies and data-driven insights play an increasingly significant role in optimizing media scheduling decisions for better campaign outcome 7.8 MEDIA PLANNING IMPLEMENTATION: Media planning implementation entails carrying out and managing the media plan created throughout the media planning process. It consists of the following major steps: Purchasing Media: Media buying is the practice of purchasing media space or time from multiple media vendors or platforms after the media plan has been finalized. This entails negotiating and achieving agreed-upon pricing and terms for advertising placements. Ad placement: Media planners collaborate with media vendors to ensure that advertising are displayed in the desired places and time periods throughout the various media channels. Considerations such as prime-time slots, certain areas of a print newspaper, or strategic placements on websites or social media platforms may be involved. Creative Asset Production: Media planning implementation also entails collaborating with the creative team or advertising agency to generate and produce the actual ad creative or content. This may entail creating graphic elements, writing copy, creating audio or video content, and ensuring that the creative is in line with the media placement and objectives. Campaign Monitoring: Once the media plan has been implemented, it is critical to regularly monitor the campaign's performance. This entails tracking critical metrics including reach, frequency, impressions, click-through rates, conversions, and other pertinent success indicators. Monitoring enables media planners to measure the success of media placements and make adjustments as needed. Adjustments and optimization: Based on campaign monitoring and analysis, media planners may need to optimize or alter the media plan to increase performance. To maximize outcomes, financial resources may be munotes.in
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reallocated to higher-performing media channels, targeting parameters refined, ad creative adjusted, or the media mix modified. Reporting and Evaluation: The implementation of media planning culminates in reporting and evaluating the overall efficacy of the media campaign. Media planners assess the performance of a campaign in relation to its objectives and key performance indicators (KPIs). This assessment aids in the identification of successes, areas for improvement, and insights for future media planning efforts. Effective communication and coordination among many stakeholders, including media vendors, creative teams, and internal teams, are critical throughout the implementation phase. Collaboration guarantees that the media plan is carried out smoothly and in accordance with the entire marketing strategy. Media planners may maximize the impact and reach of an advertising campaign, achieve the targeted objectives, and contribute to the overall success of marketing activities by successfully implementing the media plan. 7.9 TEST YOUR KNOWLEDGE 1. ______________, in advertising, is a series of decisions involving the delivery of message to the targeted audience. A. Market Analysis B. Media Objective C. Media Planning D. Media Strategy 2. Every media plan begins with the ______________. A. media objective B. market analysis C. media mix D. media strategy 3. ______________ describes what you want the media plan to accomplish. A. Media Objective B. Media analysis C. Media mix D. Media strategy 4. ___________ decisions are the decisions about timing, continuity and size of ads. A. Scheduling B. Reach C. Frequency D. Flexibility 5. _______ is the person at the advertising agency who develops and executes your media plan. A. Engineer B. Media Planner C. Doctor D. CEO 7.10 ANSWERS 1) C 2) B 3) A 4) A 5) B munotes.in
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82 Integrated Marketing Communiucation 7.11 QUESTIONS Q.1 What is media planning? Explain the objectives of media planning. Q.2 Explain the media planning process. Q.3 What is media scheduling? What are the key steps and considerations involved in implementing a media planning strategy effectively? 7.12 SUMMARY The act of carefully identifying and selecting the most effective media channels to reach a target audience and achieve marketing objectives is known as media planning. It entails performing research, analyzing market trends, and comprehending customer behaviour in order to create a comprehensive media strategy. In contrast, media scheduling is concerned with determining the timing and frequency of media placements within the selected channels in order to maximize reach and impact. It entails developing a precise schedule outlining when and where advertisements will be broadcasted or published. The execution and administration of the media plan, including negotiating with media vendors, evaluating performance, and making revisions as needed, is referred to as media planning implementation. Companies may maximize their advertising efforts and engage with their target audience in the most efficient and impactful way possible by combining smart planning, clever scheduling, and effective implementation. 7.13 CASELET Caselet 1: Print Media Planning and Implementation Scenario: A multinational consumer goods company is launching a new line of beauty products targeted at young adults. They want to create brand awareness and reach their target audience effectively through print media. Media Planning: The media planning team conducts thorough market research to identify the most popular print publications among the target audience. They focus on lifestyle magazines, fashion magazines, and newspapers with a significant young adult readership. Implementation: Selection of Print Publications: After careful analysis, the team chooses three popular magazines and two prominent newspapers that align with the target audience's interests and demographics. munotes.in
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Ad Placement: The team negotiates with each publication for optimal ad placement. They select high-visibility positions such as inside front covers, back covers, and full-page spreads to capture maximum attention. Creative Design: The creative team develops visually appealing and engaging advertisements that highlight the unique features and benefits of the beauty products. They ensure the brand's messaging is consistent across all print ads. Ad Scheduling: The media planning team distributes the ads strategically over a three-month period, considering peak readership periods and seasonal trends. They aim to maintain a consistent presence to reinforce brand awareness. Monitoring and Evaluation: Throughout the campaign, the team monitors the print publications' circulation and readership figures. They track the response rate through dedicated URLs or promotional codes to measure the campaign's effectiveness. Results: The print media campaign generates a substantial increase in brand awareness and product interest among the target audience. The company receives positive feedback from retailers and experiences a surge in product sales following the campaign's launch. Caselet 2: Digital Media Planning and Implementation Scenario: A startup tech company has developed a revolutionary mobile app targeting busy professionals. They want to generate user acquisition and drive app downloads through digital media channels. Media Planning: The media planning team researches the digital landscape to identify platforms and channels that resonate with the target audience. They focus on social media platforms, search engine marketing, and display advertising. Implementation: Social Media Advertising: The team creates engaging social media campaigns on platforms such as Facebook, Instagram, and LinkedIn. They utilize precise targeting parameters to reach professionals based on their demographics, interests, and job titles. Search Engine Marketing (SEM): The team conducts keyword research to identify relevant search terms used by the target audience. They develop compelling ad copies and optimize landing pages to drive traffic and increase app downloads through search engine advertising. munotes.in
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84 Integrated Marketing Communiucation Display Advertising: The team collaborates with relevant websites and blogs that cater to the target audience. They create visually appealing display ads that convey the app's value proposition and benefits. Ad placements include banner ads, interstitial ads, and native ads. Influencer Partnerships: The team identifies influencers within the tech and professional space who can promote the app to their followers. They establish partnerships to create sponsored content, reviews, or tutorials that highlight the app's features and encourage downloads. Performance Tracking: The team closely monitors key performance indicators (KPIs) such as click-through rates (CTR), conversion rates, and cost per acquisition (CPA) to assess the campaign's effectiveness. They make data-driven optimizations to maximize results. Results: The digital media campaign successfully generates significant user acquisition and drives a high volume of app downloads. The startup receives positive user feedback and experiences a steady increase in active users, establishing a strong presence within the target market. 7.14 REFERENCES Kotler, P., Keller, K. L., Ang, S. H., Tan, C. T., & Leong, S. M. (2018). Marketing management: an Asian perspective. Harlow: Pearson. Saxena, R. (2005). Marketing management. Tata McGraw-Hill Education. Karunakaran, K. (2008). Marketing management. Himalaya Publishing House. Percy, L. (2023). Strategic integrated marketing communications. Taylor & Francis. Juska, J. M. (2021). Integrated marketing communication: advertising and promotion in a digital world. Routledge. Broderick, A., & Pickton, D. (2005). Integrated marketing communications. Pearson Education UK. munotes.in
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85 8 PERSONAL SELLING Unit Structure: 8.0 Objectives 8.1 Personal Selling - Introduction, Key Aspects, Definitions 8.2 Principles of Personal Selling, Negotiation Skills 8.3 Public Relations 8.4 Internet Marketing – Concept, Importance, Benefits 8.5 Types of Internet Marketing 8.6 Summary 8.7 Question 8.8 Reference 8.0 OBJECTIVES 1. To understand the concept of personal selling and their key aspects 2. To know about the public relations 3. To acquire knowledge about internet marketing and its types 8.1 PERSONAL SELLING - INTRODUCTION, KEY ASPECTS, DEFINITIONS Personal selling is a promotional method used by companies to engage in face-to-face communication with potential customers. It involves a salesperson building a relationship with the customer, understanding their needs, and persuading them to make a purchase. Personal selling is an important component of the overall marketing strategy of many organizations. Personal selling occurs in nearly each human interaction. It is the most important component of promotion mix in attaining the goal of all marketing efforts, to increase profitable sales by offering want satisfaction to consumers over the long run. So, in the age of e-Commerce, personal selling has its own unique importance in terms of customer satisfaction. Personal selling also plays a significant role in internet marketing, allowing businesses to connect with customers on a one-on-one level through digital platforms. By leveraging technology and employing personalized strategies, personal selling in internet marketing enables businesses to build relationships, address customer needs, and drive sales. munotes.in
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86 Integrated Marketing Communiucation Key Aspects of Personal Selling in Internet Marketing: 1. Building Relationships: • Develop personalized and targeted approaches to connect with potential customers online. • Utilize social media platforms, online communities, and email marketing to engage with individuals and build relationships. • Focus on understanding customer preferences, needs, and pain points to tailor your selling efforts accordingly. 2. Utilizing Data and Analytics: • Leverage customer data and analytics to gain insights into customer behavior and preferences. • Use this information to personalize marketing messages and offers, enhancing the personal selling experience. • Measure and track key performance indicators to evaluate the effectiveness of your personal selling efforts. 3. Effective Online Communication: • Craft compelling and persuasive online messages to capture the attention of potential customers. • Utilize various online channels such as email, social media, chat, and video conferencing to communicate with customers. • Tailor your communication style and approach based on the preferences and characteristics of each individual customer. 4. Virtual Demonstrations and Presentations: • Conduct virtual demonstrations or presentations to showcase products or services in an engaging and interactive manner. • Utilize screen sharing, videos, and visual aids to provide a comprehensive understanding of your offerings. • Address customer questions and concerns in real-time, ensuring a personalized and informative experience. 5. Online Consultations and Customization: • Offer online consultations to understand customer needs and provide tailored solutions. • Provide personalized recommendations and advice based on individual requirements. munotes.in
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• Utilize online tools and interactive platforms to showcase customization options and create a sense of exclusivity. 6. Responsive Customer Support: • Offer prompt and responsive customer support through various online channels. • Provide personalized assistance, guidance, and troubleshooting to enhance the customer experience. • Utilize live chat, chatbots, or online ticketing systems to ensure timely and efficient resolution of customer queries. 7. Building Trust and Credibility: • Establish trust and credibility through online testimonials, case studies, and reviews. • Utilize social proof and user-generated content to showcase the positive experiences of satisfied customers. • Respond to customer feedback and reviews promptly, demonstrating your commitment to customer satisfaction. Personal selling in internet marketing allows businesses to leverage the power of technology and personalized strategies to connect with customers on a deeper level. By focusing on building relationships, utilizing data and analytics, effective online communication, virtual demonstrations, customization, responsive customer support, and building trust and credibility, businesses can maximize the impact of their personal selling efforts in the realm of internet marketing. Embracing these aspects will help businesses forge meaningful connections, drive sales, and foster customer loyalty in the digital landscape. Firms track consumers’ shopping behaviors in their online stores to provide individually personalized banners through a method called retargeting. Personalization can substantially enhance banner effectiveness, its impact centers on its interplay with timing and placement factors. First, personalization increases click-through especially at an early information state of the purchase decision process. A high degree of content personalization (DCP) is most effective when a consumer has just visited the advertiser’s online store, but quickly lose effectiveness as time passes since that last visit. Second, personalization increases click-through irrespective of whether banners appear on motive corresponding or dissimilar display websites. Personalization increases advertisement effectiveness only on motive corresponding websites, but decreases it on unrelated websites. Definitions: Personal selling is defined as, ‘the oral presentation in a conversation with one or more prospective purchasers or the purpose of making sales. munotes.in
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88 Integrated Marketing Communiucation Salesmanship is the art of successfully persuading customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfaction.’ -G. Blake Personal Selling in Internet Marketing refers to the process of utilizing digital platforms and online channels to engage in one-on-one communication with potential customers, build relationships, and drive sales. It involves employing personalized strategies and techniques to understand customer needs, address their concerns, and provide tailored solutions through online interactions. Definitions: 1. American Marketing Association (AMA): "Personal Selling in Internet Marketing is the use of online channels and digital platforms to engage in direct, personalized communication with potential customers, with the aim of building relationships, understanding customer needs, and influencing purchase decisions." 2. Marketing-Schools.org: "Personal Selling in Internet Marketing is the practice of using online platforms, such as websites, social media, and email, to establish direct connections with potential customers, engage in personalized conversations, and guide them through the sales process in a virtual environment." 3. Business Dictionary: "Personal Selling in Internet Marketing is the art of selling products or services online through individualized, interactive communication with customers. It involves using digital platforms to understand customer needs, present customized solutions, and provide personalized assistance to drive sales and build customer relationships." In summary, personal selling in internet marketing encompasses the use of digital platforms to engage in personalized communication, understand customer needs, provide tailored solutions, and guide potential customers through the sales process in order to achieve sales goals and foster long-term customer relationships. 8.2 (A) PRINCIPLES OF PERSONAL SELLING • Customer Focus: Salespeople should prioritize the customer's needs, preferences, and interests. They must understand the customer's perspective, actively listen, and tailor their approach to match the customer's requirements. • Building Rapport and Trust: Establishing rapport and building trust is crucial in personal selling. Salespeople should create a positive first impression, be genuine, and demonstrate credibility. Trust is essential for developing long-term customer relationships. • Effective Communication: Clear, concise, and persuasive communication is key to personal selling. Salespeople should munotes.in
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articulate the product's value proposition, answer customer questions, and address objections effectively. Active listening and empathy are also important communication skills. • Product Knowledge: Salespeople should have in-depth knowledge about the product or service they are selling. They should understand its features, benefits, and competitive advantages. Product knowledge helps salespeople address customer inquiries, offer solutions, and position the offering effectively. • Problem Solving: Personal selling involves identifying and addressing customer problems or needs. Salespeople should act as problem solvers, providing tailored solutions that meet the customer's specific requirements. Understanding the customer's pain points and offering appropriate solutions is crucial. • Persistence and Resilience: Personal selling often involves facing rejection and overcoming obstacles. Salespeople should be persistent, resilient, and maintain a positive attitude. They should view objections and rejections as opportunities to learn, adapt, and improve their sales approach. • Ethical Conduct: Salespeople should adhere to ethical standards and maintain integrity in their interactions with customers. They should provide accurate information, avoid misleading tactics, and prioritize the customer's best interests. Ethical conduct builds trust and enhances the organization's reputation. • Continuous Learning and Adaptation: Salespeople should continuously update their knowledge, skills, and techniques. They should stay updated with industry trends, competitor activities, and customer preferences. Adapting to changing customer needs and market dynamics is essential for success in personal selling. (B) Negotiation Skills Negotiation skills are crucial in personal selling, even in the context of online marketing through the Internet. As businesses increasingly leverage digital platforms for sales and customer interactions, mastering negotiation skills in the online environment is essential for sales professionals to build relationships, close deals, and maximize sales outcomes. Key Aspects of Negotiation Skills in Online Marketing through the Internet: 1. Effective Written Communication: • Develop strong written communication skills to convey your messages persuasively and clearly. • Craft compelling and concise emails, proposals, and other written materials to engage potential customers. munotes.in
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90 Integrated Marketing Communiucation • Pay attention to tone, grammar, and formatting to maintain professionalism and make a positive impression. 2. Active Listening in Virtual Interactions: • Practice active listening during online meetings, video calls, or phone conversations. • Pay close attention to verbal cues, tone of voice, and other non-verbal signals to understand the customer's needs, concerns, and preferences. • Ask clarifying questions to ensure a comprehensive understanding of the customer's requirements. 3. Building Trust and Rapport Online: • Establish trust and rapport with customers through online channels. • Leverage social media platforms, online communities, and professional networks to connect and engage with potential clients. • Share valuable and relevant content through blog posts, social media updates, or webinars to build credibility. 4. Adapting to Online Platforms and Tools: • Familiarize yourself with online collaboration and communication tools such as video conferencing platforms, chat applications, and CRM systems. • Utilize these tools effectively to facilitate negotiations, share relevant information, and track progress. 5. Persuasive Presentation Skills: • Develop the ability to deliver persuasive online presentations using tools like slideshows or screen sharing. • Tailor your presentations to resonate with the specific needs and interests of the online audience. • Incorporate visual aids, interactive elements, and compelling storytelling techniques to engage and captivate the audience. 6. Problem-Solving and Creative Solutions: • Apply problem-solving skills to identify customer pain points and propose creative solutions using the online medium. • Leverage online resources, case studies, and testimonials to present evidence and support your proposed solutions. munotes.in
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• Encourage collaborative problem-solving and seek win-win outcomes that benefit both parties. 7. Building Online Negotiation Etiquette: • Familiarize yourself with online negotiation etiquette, including prompt response times, clear and concise messaging, and professional behavior. • Demonstrate respect, patience, and professionalism during online negotiations, fostering positive interactions and relationships. In the era of online marketing through the Internet, mastering negotiation skills is crucial for personal selling success. By developing effective written communication, active listening, building trust online, adapting to digital tools, delivering persuasive presentations, problem-solving creatively, and following online negotiation etiquette, sales professionals can navigate the digital landscape and achieve successful outcomes. Cultivating these skills will help build strong customer relationships, close deals, and maximize sales results in the online marketing arena. 8.3 PUBLIC RELATIONS Public Relations (PR) in Personal Selling of Internet Marketing refers to the strategic management of a company's reputation, communication, and relationships with various stakeholders in the digital landscape. It involves using online channels and platforms to cultivate a positive image, build credibility, and enhance customer perceptions, thereby supporting personal selling efforts in internet marketing. Key Aspects of PR in Personal Selling of Internet Marketing: 1. Online Reputation Management: • Monitor and manage the company's online presence, including social media platforms, review sites, and industry forums. • Respond to customer feedback and reviews promptly and professionally, addressing any concerns or issues raised. • Share positive testimonials, case studies, and success stories to build trust and credibility among potential customers. 2. Influencer Relations: • Identify and collaborate with online influencers, bloggers, and industry experts who can advocate for your brand and products. • Engage in influencer marketing campaigns to leverage their reach and credibility, amplifying your personal selling efforts. • Foster authentic relationships with influencers to generate positive word-of-mouth and enhance brand reputation. munotes.in
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92 Integrated Marketing Communiucation 3. Content Marketing and Thought Leadership: • Develop and share high-quality, informative content such as blog posts, articles, whitepapers, and videos. • Position company executives and experts as thought leaders by offering valuable insights, industry expertise, and innovative perspectives. • Engage in guest blogging and media contributions to establish the company as a trusted authority in its field. 4. Online PR Campaigns: • Develop and execute targeted PR campaigns leveraging online channels to promote product launches, special offers, or company milestones. • Utilize press releases, online news portals, and social media to generate buzz and media coverage. • Engage with online journalists and bloggers to secure favorable coverage and increase brand visibility. 5. Social Media Engagement: • Maintain an active and engaging presence on social media platforms to interact with customers, address inquiries, and share relevant content. • Respond promptly to comments, messages, and mentions, demonstrating a customer-centric approach and building positive relationships. • Leverage social media listening tools to monitor conversations and sentiment around the brand, adapting strategies as needed. 6. Crisis Management: • Develop a crisis communication plan to address potential negative events or online backlash effectively. • Respond promptly and transparently to address issues, providing accurate information and resolving concerns. • Utilize online channels to communicate updates, apologize when necessary, and showcase efforts to rectify any problems. 7. Partnerships and Collaborations: • Seek partnerships with relevant organizations, influencers, or industry associations to enhance brand credibility and expand reach. munotes.in
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• Engage in cross-promotion, co-marketing, or joint campaigns to leverage each other's audiences and strengthen personal selling efforts. By incorporating PR strategies into personal selling efforts in internet marketing, companies can shape a positive brand image, foster credibility, and build strong relationships with customers and stakeholders. Effective PR initiatives can enhance the effectiveness of personal selling activities, driving customer engagement, loyalty, and ultimately, sales success in the digital landscape. 8.4 INTERNET MARKETING 8.4.1 Concept : Internet marketing refers to marketing that occurs only online. In other words, marketing efforts that businesses do solely over the Internet. Internet marketing involves several methods to drive traffic to the advertiser’s website. It also includes marketing efforts to drive traffic to websites where consumers can purchase the advertiser’s products. Digital marketing is similar, but also includes some non-Internet electronic marketing. Marketing over the Internet is a rapidly growing business. It is growing fast because more people use the Internet daily. It is also expanding rapidly because more people are purchasing goods and services online, i.e., online shopping is booming. Definition : Internet marketing, involves promoting a brand and its products or services to online audiences using the Internet and digital media. Internet marketing, is a form of marketing that uses the internet and technology to connect with potential customers. Internet marketing is the promotion of a company and its products or services through online tools that generate leads, drive traffic, and boost sales. Internet marketing relies on digital channels to distribute promotional messages. Internet marketing is an umbrella term that covers a wide range of marketing strategies and avenues. From emails, search engines, social media posts, and blog articles, there is one common theme among all of these tactics: They all focus on delivering content. With Internet marketing, also called online marketing, you use a combination of online strategies to help you build better relationships with your audience and attract more interested leads. Whether you are in marketing or a related role, you have probably heard of online marketing. You might wonder if there is a difference between online marketing, digital marketing, and internet marketing and what exactly it all entails. Or you might want to know if it is right for your business and how to get started. munotes.in
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94 Integrated Marketing Communiucation If your business is just now looking into online marketing, you are in good company — 60% of marketing leaders say their companies are only beginning to visualize and build a digital marketing organization. These marketers are all headed online because that is where the consumers are — and the sales. US adults spend more than eight hours a day consuming digital media, and nearly 30% of US retail sales happen online. That is a huge share of the market you are missing out on every day that you do not have an internet marketing strategy in place. Internet marketing is a great opportunity for you to reach more people for your business. The difference between internet marketing and digital marketing- Although marketers often use these terms interchangeably, there are subtle differences between internet marketing and digital marketing. Essentially, digital marketing is a broad term for marketing strategies that leverage digital channels to promote products or services, from TV ads and billboards to social media platforms and pay-per-click campaigns. This indicates that digital marketing isn’t limited to the internet. In contrast, internet marketing refers to a set of marketing strategies that are exclusively carried out via the internet. This makes it a subset of digital marketing, but it is really a core factor, since most digital marketing strategies fall within the boundaries of internet marketing. Online marketing and ecommerce make it possible for the entire customer journey to happen digitally. Potential customers can discover a brand, engage with a brand, make a purchase, and finally advocate for that brand — all online. Plus, digital media can be less costly to produce than print or other mediums, and it can reach a much wider audience. Traditional marketing channels include billboards, radio, print, and television, while online marketing shows up in social media, websites, emails, and other forms. The methods, strategies, and channels that fall under the umbrella of online marketing are diverse, but they all seek to use the internet to connect to larger and more targeted audiences. 8.4.2 Importance of Internet Marketing • It drives a better return on investment (ROI): Internet marketing strategies are more cost-effective than traditional marketing strategies. These strategies have a better ROI because you target more interested leads, making them more likely to convert. • It allows you to reach more interested audiences: Online marketing enables you to reach audiences interested in your products or services. Using Internet marketing, you can reach these audiences interested in your business, whether they’re local or international. • It allows you to interact with audiences regardless of the time: With automation and other techniques available with Internet marketing, you can stay in contact with your audience 24/7, so you can be there munotes.in
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right when they’re ready to convert, no matter the time, no matter the time zone. • It can be tailored to any industry and any size business: No matter what industry or size your business is, Internet marketing can adjust perfectly to provide the results you want because your audience is guaranteed to be online. • It provides easy and convenient ways for audiences to convert: The Internet makes it easy for your audience to convert. All it takes is the push of a button to buy, sign-up, download, or contact. Internet marketing is important because it expands a business’s reach and allows them to connect with more leads interested in their business. The importance of Internet marketing lies in that it best aligns with the way consumers prefer to discover and purchase products and services. 7 ways to use Internet marketing You know the meaning of Internet marketing, but how can you use Internet marketing? A few ways: • Build brand awareness • Generate website traffic • Attract qualified leads • Nurture leads • Convert leads (or drive sales) • Reduce churn • Improve customer satisfaction Keep reading to learn how to use Internet marketing to grow your business. 4 steps to developing an Internet marketing strategy Internet marketing allows you to communicate your brand’s message to your audience, so when building your Internet marketing strategy, it is essential to keep your audience and brand in mind. These four steps to helps the organization to build Internet marketing strategy: 1. Identify your Internet marketing goals The best Internet marketing plan is built around and continuously works towards a set goal. Without something to work towards, your Internet marketing strategies will fail to produce the results you want. munotes.in
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96 Integrated Marketing Communiucation When building an Internet marketing strategy, identify what you want to achieve with your online marketing. Possible goals you could choose from are: • Driving traffic to your site • Boosting engagement • Earning calls • Encouraging downloads • Gaining subscribers • Netting sales • Growing followers on social media and more 2. Define your audience To create a proper Internet marketing strategy, you need to identify your audience first. You want to identify who is interested in your products or services. Look at your typical customer. What attributes define them? You can document information like: • Demographics • Socioeconomic status • Interests • Hobbies • Occupation • Buying habits and more Without researching your audience, you run the risk of improperly targeting your audience. You will drive less than satisfactory results with your campaigns if you do not target the right people. 3. Identify the strategies you want to use in your Internet marketing campaign After you have identified your Internet marketing goal as well as your audience, the next step is to determine which Internet marketing strategies would work best for your business. You will want to use strategies that enable you to reach your target audience. Where is your audience likely to engage with your business? You will want to consider what keywords they are searching or what social platforms they use. munotes.in
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It is also important to consider your budget, too. You want to ensure you are investing in strategies that fit within your budget, so you do not overspend. 4. Monitor your strategies For Internet marketing strategies to drive the best results, you need to analyze the data from your campaigns. Online data tracking tools such as Google Analytics can help you keep track of data from your Internet marketing strategy in real-time. This platform is great for SEO and PPC strategies. You can track: • How many people visit your site • How long they stay on your pages • How many people click your ad • How many conversions you receive 8.4.3 Internet / Online Marketing Benefits In the same way that the internet has changed how we live, think, and communicate, it has opened new possibilities and new benefits to marketers. In addition to offering a wider reach, online marketing is: • Cost-effective. Digital messaging can be cheaper and more efficient to produce than print. It can duplicate faster, and it can be highly targeted to reach only the most relevant audiences, which means it usually offers a strong ROI. • Fast. Your audience can act on your messaging right away, giving you a quick turnaround on your investment. • Trackable. It is easy to know whether your audience is clicking, opening emails, sharing, or making purchases. If you know what isn’t working, you don’t need to waste time and resources on it. If you know what is working, you can lean into it. • Targeted. Online marketing allows companies to target specific audiences and customize their messages. • Personal. Digital methods can be automated and responsive to online consumer behavior, which means that an unlimited number of individual customers get timely, relevant, and personalized information. • Impressive. The content you share online is a chance to demonstrate expertise and create brand recognition. • Attractive. Many online marketing methods are inbound, which means that by creating accessible and appealing content, you can draw munotes.in
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98 Integrated Marketing Communiucation in the right customers rather than blasting and hoping it reaches those who are looking for it. Online marketing offers businesses the opportunity to connect with large audiences, often efficiently and affordably, in real time. 8.5 TYPES OF INTERNET / ONLINE MARKETING There are many types of online marketing, and just as the internet continues to change and evolve, the way businesses use it to market their products and services will change along with it. You do not need to use every type, but successful marketers will select at least a few that complement each other and work best for their goals. Common types of online marketing include: • SEO (search engine optimization) • Email marketing • Social media marketing • Influencer marketing • Affiliate marketing • Web design • Paid advertising • Display advertising • Online events and webinars • Conversion rate optimization • Content marketing • Influencer marketing Internet marketing examples Internet marketing uses several techniques and strategies to drive online traffic, leads, and sales. Online marketing involves using these major strategies: A. Email Marketing Email marketing enables you to connect one-on-one with leads interested in your products or services. There are several different types of emails you can send, but some of the most popular ones are: • Newsletters • Customer service munotes.in
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• Follow up • Loyalty/rewards • Recommendations • Promotions You can also take advantage of the advanced targeting and personalization options that come with email Internet marketing strategies. With emails, you want to hit users with reminders and deals when they are most likely ready to convert. Use email personalization to send emails to your audience when: • You publish new content they might like: You can show off your new content and get your audience to interact with your brand. Show that you have something in common with them. • They look at your products and services: You can send promotions on those products or services, or recommend similar ones they might be interested in. • They abandon a cart of products: You can remind them of items in their cart to increase the chance that they will make a purchase. • It’s their birthday or another special event: Discounts and coupons sent on these days work great for getting your audience to convert. When you personalize an email, be sure to include the subscriber’s name. It makes them feel connected to you and that you care about them enough to get to know them. Adding their name makes them more likely to engage because they will know the email content is specific to their interests. Once you have email addresses, segment your subscribers. This way, you can create personalized messaging for each segment. Personalization goes beyond “Hello [first name].” You should know each segment's pain points so you can create campaigns and share content that resonates with them. With segmentation, you can: • Reach out to new subscribers • Ask existing customers for reviews • Get feedback from existing customers • Reach out to inactive subscribers • Follow up on abandoned carts and more Regardless of who you are reaching out to, ensure you are sending compelling, helpful content. munotes.in
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100 Integrated Marketing Communiucation Email marketing campaigns help you stay in touch with your customer base, introduce new products or services, provide discounts and promotions and remind internet users about the brand's offerings. You can develop an email list in a variety of ways, including asking customers for their email addresses when they make purchases or displaying the ‘Join our email list' buttons on your website. To persuade customers to sign up to be on a mailing list, you can also offer a special discount or voucher. Some benefits of email marketing are: • Wide reach • Cost-effectiveness • Good return on investment B. Mobile Marketing Definition: Mobile marketing refers to the practice of promoting products or services to target audiences through mobile devices such as smartphones and tablets. Growing significance: Mobile devices have become an integral part of people's lives, offering a unique opportunity for personal selling through targeted marketing efforts. Advantages of mobile marketing: • Wider reach: Mobile devices have extensive market penetration, enabling businesses to reach a large and diverse audience. • Personalization: Mobile marketing allows for customized and personalized messaging, enhancing the effectiveness of personal selling efforts. • Immediate communication: Mobile devices offer real-time communication, enabling businesses to interact with potential customers promptly. Strategies for Mobile Marketing in Personal Selling: A. Building a mobile-friendly website: • Responsive design: Ensure that your website is optimized for mobile devices, providing a seamless user experience across different screen sizes. • Fast loading times: Optimize your website's loading speed to prevent user frustration and abandonment. • Mobile-friendly content: Create mobile-specific content that is easy to read and navigate on small screens. B. Utilizing mobile apps: • App development: Consider developing a mobile app that aligns with your personal selling goals, providing a platform for direct customer engagement. munotes.in
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• App features: Include features such as product catalogs, personalized recommendations, and in-app messaging to enhance the personal selling experience. Implementing SMS marketing: • Permission-based campaigns: Obtain explicit consent from customers before sending them promotional messages via SMS. • Targeted messaging: Segment your audience based on demographics, interests, and purchasing behavior to deliver personalized SMS marketing campaigns. • Call-to-action: Include clear calls-to-action in SMS messages, such as links to product pages or exclusive discounts, to drive conversions. Leveraging mobile advertising: • Location-based targeting: Utilize geo-targeting to deliver relevant ads to potential customers based on their geographic location. • In-app advertising: Advertise on popular mobile apps that align with your target audience, ensuring maximum visibility and engagement. • Mobile search advertising: Optimize your mobile website for search engines, leveraging mobile-specific SEO techniques to increase organic traffic. Best Practices for Mobile Marketing in Personal Selling: • Optimize for mobile search: Ensure your website and content are mobile-friendly and optimized for search engine rankings on mobile devices. • Provide valuable content: Deliver useful and engaging content to your mobile audience, demonstrating your expertise and building trust. • Personalize interactions: Leverage customer data to personalize your communication and offers, tailoring them to individual preferences and needs. • Use mobile analytics: Utilize mobile analytics tools to track user behavior, measure campaign performance, and gain insights for continuous improvement. • Seamless omnichannel experience: Integrate mobile marketing efforts with other channels to provide a consistent and unified experience for customers. Mobile marketing offers immense potential for personal selling, allowing businesses to engage with their target audience through personalized and timely interactions. By adopting mobile-friendly strategies and leveraging the unique capabilities of mobile devices, companies can effectively munotes.in
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102 Integrated Marketing Communiucation enhance their personal selling efforts and drive sales in today's mobile-centric world. C. Search Engine Optimization (SEO) “Search engine optimization (SEO) is the practice of increasing the quantity and quality of traffic to your website through organic search engine results.” SEO is an internet marketing strategy that boosts your brand’s visibility in search engines, which can bring more visitors to your site. SEM or search engine marketing is a digital marketing approach to improve a website's visibility in search engine results pages. Using search engine marketing, you may advertise and pay the host depending on the traffic or the number of clicks your ad generates. This makes SEM an economical option for advertisers. Each visitor helps in boosting the website's ranking through organic search results. Effective SEO campaigns require extensive research on keywords and the potential to create high-quality, meaningful content based on the chosen keywords. Search engine optimization (SEO) is the process of optimizing your website to rank higher in search results. This strategy helps you appear in more relevant search results, so you can drive more qualified traffic to your site. Google, Yahoo, and Bing, for example, are search engines. They have primary search results, where web-pages and other content are ranked according to what they consider most relevant to users. Other content includes videos or local listings. Much of SEO involves increasing your rank in search by using techniques to: • Research and incorporate search terms (keywords) that your target audience uses into your content • Generate high-quality content that provides your audience with relevant answers to the questions they make • Improve user experience by improving web design • Earn backlinks from authoritative sources in your industry to gain online reputation Some benefits of SEM: • Helps in targeting the right audience through optimised ads • Can increase traffic through ad visibility • Can help in increasing brand awareness munotes.in
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D. Social Media Advertising Social media advertising is also another cost-effective Internet marketing strategy to start generating an online presence. If you want to use social media advertising, you willl need to choose which platforms you want to use to reach your audience. Popular social media advertising platforms include: • Facebook • Instagram • Twitter • Pinterest • LinkedIn • YouTube Social media platforms gather a excess of information on users that you can use to target your ideal audiences — the ones that are most interested in what you have to offer. Pulling in these audiences with a wide variety of engaging social media ad types will boost your traffic and engagement, as well as your sales and conversions. E. Social Media Marketing Social media networks provide a great opportunity to market online because of how easy it is to use the networks to share information. That is why social media marketing is a great option for your business. With social media, you can: • Increase brand awareness: Social media lets you have a larger online presence. You can build up your brand identity and show up as a relevant interest for your audiences. When your audience sees your presence on social media, they will get more familiar with your brand. • Interact with audience members: Social media provides useful platforms for interacting with your audience one-on-one. Whenever your audience has questions, concerns, or thoughts they want to share, you can be there to provide quality interaction right when they do. Your engagement with your audience on social media can help set you apart from your competition and show that you care for your audience. • Build your brand voice: Social media is one of the best places to show off what makes you unique. You can showcase how your quality products and services improve your audience’s life. You can also show off the relevant content that you produce. Social media provides an essential means of engaging with your customers, building your brand voice and identity, and providing people with great munotes.in
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104 Integrated Marketing Communiucation customer service. Social media marketing is the process of acquiring attention and sales using social media platforms such as Facebook, Instagram, or Twitter. Social media marketing can be split into two camps: organic (free) or paid. • Organic social media marketing Organic social media marketing focuses on building a community and deepening relationships with consumers to induce interest and customer loyalty. First, you can position your brand as an authority in your niche. An easy way to do this is to engage other people and contribute valuable insights to conversations. Another key aspect of social media marketing is harnessing the power of customer relations. Immediately replying to customer queries on social media showcases your brand’s authenticity and will inspire other people to trust your products or services. What is more, social media marketing is closely linked to content marketing (which we’ll cover next). This is because social media platforms are the perfect place to promote valuable content to your community and niche. • Paid social media marketing There are tons of ways to use paid social media marketing to promote your business, and each platform has its own suite of paid promotional options. You can pay to promote your existing organic posts or create a dedicated Facebook ad tailored to your marketing objectives. Case Study Personal Selling in Internet Marketing: A Case Study on XYZ Company Introduction: This case study examines the implementation of personal selling in internet marketing by XYZ Company, a leading e-commerce retailer specializing in consumer electronics. The company has successfully integrated personal selling strategies into their online marketing efforts to build relationships, understand customer needs, and drive sales. By leveraging technology and personalized approaches, XYZ Company has effectively connected with their target audience, enhanced customer satisfaction, and achieved notable business growth. Background: XYZ Company recognized the significance of personal selling in the competitive e-commerce landscape. Despite the convenience and accessibility of online shopping, they understood the importance of establishing personal connections with customers to differentiate themselves from competitors and foster long-term loyalty. To achieve this, they integrated personal selling techniques into their internet marketing strategy. munotes.in
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Key Aspects and Strategies Implemented: 1. Building Relationships: XYZ Company utilized various online platforms, including social media, email marketing, and online communities, to engage with potential customers and build relationships. They emphasized personalized and targeted approaches, tailoring their communication to individual customer preferences and characteristics. 2. Utilizing Data and Analytics: To gain insights into customer behavior and preferences, XYZ Company leveraged customer data and analytics. This information allowed them to personalize marketing messages and offers, creating a more effective personal selling experience. They tracked key performance indicators to evaluate the effectiveness of their personal selling efforts. 3. Effective Online Communication: XYZ Company crafted compelling and persuasive online messages to capture the attention of potential customers. They utilized various online channels, such as email, social media, live chat, and video conferencing, to communicate with customers. The company adapted their communication style and approach based on individual customer preferences, ensuring a personalized experience. 4. Virtual Demonstrations and Presentations: To showcase their products effectively, XYZ Company conducted virtual demonstrations and presentations. They utilized screen sharing, videos, and visual aids to provide a comprehensive understanding of their offerings. By addressing customer questions and concerns in real-time, they delivered personalized and informative experiences. 5. Online Consultations and Customization: XYZ Company offered online consultations to understand customer needs and provide tailored solutions. Their sales representatives provided personalized recommendations and advice based on individual requirements. Online tools and interactive platforms were used to showcase customization options, creating a sense of exclusivity. Results and Outcomes: 1. Increased Customer Engagement: By implementing personal selling in internet marketing, XYZ Company experienced increased customer engagement and interaction. The personalized approach resonated with customers, leading to a higher level of satisfaction and loyalty. 2. Improved Conversion Rates: The integration of personal selling strategies resulted in improved conversion rates for XYZ Company. By understanding customer needs and providing tailored solutions, they were able to effectively influence purchase decisions and drive sales. munotes.in
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106 Integrated Marketing Communiucation 3. Enhanced Customer Satisfaction: Through personalized communication, responsive customer support, and customized offerings, XYZ Company significantly enhanced customer satisfaction. This resulted in positive reviews, testimonials, and word-of-mouth referrals, further strengthening their brand reputation. 4. Competitive Advantage: The successful implementation of personal selling in internet marketing provided XYZ Company with a competitive advantage in the e-commerce industry. Their ability to build strong customer relationships and deliver personalized experiences set them apart from competitors. Conclusion: The case study on XYZ Company highlights the effectiveness of integrating personal selling strategies into internet marketing efforts. By focusing on building relationships, utilizing data and analytics, effective online communication, virtual demonstrations, customization, and responsive customer support, XYZ Company achieved notable business growth and customer satisfaction. Their successful implementation serves as a model for other companies seeking to leverage personal selling in the realm of internet marketing, emphasizing the importance of personalized approaches in the digital landscape. 8.6 SUMMARY Personal selling is a face-to-face promotional method where salespeople build relationships, understand customer needs, and persuade them to make a purchase. It is important in the overall marketing strategy, even in the age of e-commerce. In internet marketing, personal selling utilizes digital platforms to connect with customers on a one-on-one level, build relationships, and drive sales. Key aspects include building relationships, utilizing data and analytics, effective online communication, virtual demonstrations, customization, responsive customer support, and building trust. Negotiation skills are crucial in online marketing, involving effective written communication, active listening, building trust and rapport, adapting to online tools, persuasive presentation skills, problem-solving, and following online negotiation etiquette. Public relations in personal selling of internet marketing involves managing reputation, influencer relations, content marketing, online PR campaigns, social media engagement, crisis management, and partnerships. Internet marketing refers to marketing that occurs solely online, using digital channels to reach and interact with audiences, driving a better ROI and reaching more interested customers. It can be tailored to any industry and any size business, providing easy and convenient ways for audiences to convert. Developing an internet marketing strategy involves identifying goals, defining the audience, choosing strategies, and monitoring results. Online marketing is cost-effective, fast, trackable, targeted, personal, impressive, and attractive, allowing businesses to connect with large audiences in real-time. Internet marketing refers to marketing efforts conducted exclusively online, utilizing various methods to drive traffic to a website and promote products or services. It is cost-effective, allows targeting of specific audiences, offers munotes.in
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24/7 interaction, and can be tailored to any industry or business size. Online marketing strategies include SEO, email marketing, social media advertising, social media marketing, and more. It provides benefits such as wider reach, cost-effectiveness, trackability, targeting, personalization, and the ability to showcase expertise and improve customer satisfaction. Popular types of online marketing include SEO, email marketing, social media marketing, and mobile marketing. Social media advertising and marketing are effective for building brand awareness, interacting with audiences, and showcasing a unique brand voice. Developing an internet marketing strategy involves setting goals, defining the target audience, selecting appropriate strategies, and monitoring and analyzing the results. 8.7 QUESTIONS 1. What is personal selling, and why is it an important component of the marketing strategy for many organizations? 2. What are the key aspects of personal selling in internet marketing? 3. What are the principles of personal selling, and how do they apply to personal selling in internet marketing? 4. What are the key aspects of public relations (PR) in personal selling of internet marketing? 5. How can social media engagement enhance personal selling efforts in the online marketing context? 6. What are the advantages of using internet marketing for a business? 7. What are some common types of online marketing strategies? 8. How can businesses use social media advertising and social media marketing to promote their brand and engage with their audience? 8.8 REFERENCES 1. Personal Selling - M. C. Cant, C. H. van Heerden 2. Fundamental Of Selling – Futrell 3. Essentials of Personal Selling: The New Professionalism - Rolph E. Anderson 4. Personal Selling: Achieving Customer Satisfaction and Loyalty - Rolph E. Anderson, Alan J. Dubinsky 5. ABC's of Relationship Selling - Charles Futrell munotes.in