Mm unit 4point3

Communication Mix in
Marketing:
Course: MBA
Subject: MM II
Unit: 4

Designing and Managing Integrated Marketing
Communication
• Integrated Marketing Communication is the
combination and integration of different
modes of communication by the company and
its associates in order to give a complete
communication portfolio to all its audiences at
regular intervals. These modes of
communication are advertising, sales
promotion, public relations and publicity,
personal selling and direct marketing.

Communication…
Communication is an interactive dialogue between the
company and its customers that takes place during
the pre-selling, selling, consuming, and post-
consuming stages. The communication exercise goes
beyond the modes listed in the previous slide. The
product’s styling and price, the shape and color of
the package, the salesperson’s manner and dress, the
place’s ambience, the company’s stationery-all
communicate something to the
buyers/customers/end-users

Communication…
• IMC supports a common idea of communication across all the
communication vehicles. Ideally, it allows each
communication element to do what it does best rather than
translating a TV ad.
• The emphasis today is on total communication planning, and
not just media planning. Agencies play a significant role in this
direction. The communication can be lead at times by Direct
Marketing and at other times by Public Relations.
• The crux of the matter is that the whole communication
needs to be integrated which does not lead to any confusion.

Communication…
• Companies are not always comfortable in doing
this integration. In case, it fails, then
responsibility of failure should be identified and
remedial measures taken. Ultimately, it is the
Marketing Manager’s job to control the whole
communication package.

Communication…
• The entire Marketing Process has a large content
of communication. The product communicates a
distinctive image such as youthfulness, glamour
and prestige. The brand name communicates
the physical and psychological attributes of a
product e g., Sugar free sweetener. The
package communicates to the consumer what
the manufacturer thinks of his convenience and
sense of beauty. The price communicates the
quality of the product.

Designing and Managing Integrated
Marketing Communication…
• There are communication between buyers and
sellers i.e., distribution channel., Thus, each element
of the marketing mix either helps or hinders
communication and ultimately the sales effort.
Marketing Communication is thus a broader term
than promotional strategy.
• However, the most important element of marketing
communication is the planned promotional
communication.

Sender Encoding
Media/
channel Decoding Receiver
Noise
Distortions
ResponseFeedback

The end result of the communication process is the
understanding of the communication message. As
given in the diagram earlier, each and every stage
of the communication process has a role to play.

The sender is the source of the message. It puts
the message in symbolic form say a letter or
advertising copy. It is called ‘encoding’. The
message is carried by the media viz., the postal
department or TV or newspapers. The message is
received by the receiver who shows a particular
response which is communicated back to the
sender. The message must accomplish three tasks
in order to be effective. These tasks are as follows:
1. It must gain the attention of the receiver.

2. It must be understood.
3. It must stimulate the needs of the receiver and
suggest appropriate method to satisfy these
needs.
Senders must be aware of the receivers or
audiences they want to reach and the responses
they want. They must be skilful in encoding the message, taking into
account how the receiver or the audience is going to decode the message.
Since the sender wants the receiver to understand the message, the
sender must know as much as possible about the receiver
before the message is designed.

The sender puts the message through efficient
media that reach the audience. The response of the
audience is known by developing the feedback
channels. In this process, noise may distort the
effectiveness of communication. Noise includes
poor message planning, busy audience members or
careless feedback or response.

• The Integrated Marketing Communication Mix
consists of four major tools:
1. Advertising: Any paid form of non-personal presentation of
ideas, products and services by an identified sponsor. (A)
2. Sales Promotion: Short-term direct inducements to
encourage sales of products and services. (SP)
3. Publicity: Non-personal stimulation of demand for a
product/ service or business organization as a whole by
putting commercially significant news in media to create a
favorable image. It is not paid for by the sponsor. (P)

4. Personal Selling: For making sales, a salesman
interacts orally with the buyer or buyers in the
form of a sales presentation. (PS)
5. Public Relations: Marketers engage in public
relations to develop a favorable image of their
organizations in the eyes of public-public at
large, customers, suppliers, government, media,
competitors, shareholders, employees and the
society. (PR)

6. Events and Experiences: Activities and programs sponsored
by company designed to create daily or special brand related
interactions. (EE)
7. Direct marketing: Here mail, telephone, fax, e-mail or internet
is used to communicate directly with or solicit response or
dialogue from specific customers or prospects. (DM)

IMC to build brand equity
Mktg Commn
Program
Brand Equity
SP
EE
A
PR & P
PS
DM
Brand
awarenesss
Brand Image
Brand
responses
Brand
relationships

The starting point in planning marketing
communications is an audit of all the potential
interactions that customers in the target market
may have with the brand and the company.
Someone interested in purchasing a new computer
might talk to others, see television ads, read
articles, look for information on the internet, and
look at computers in a store.
Marketers need to assess the influences of each of
these experiences and impressions in the
consumer decision making

Managing Mass Communications: Advertising, Sales
Promotion, Events & Experiences , and Public Relations
Advertising is any paid form of non-personal presentation
of ideas, goods or services by an identified sponsor. After
identifying the target market and buyer motives, five major
decisions are taken in developing advertising campaign
Known as five Ms, these are
Mission: it details the objectives of advertising
Money: It tells the expenditure to be incurred on the campaign
Message: It tells the message to be sent to audiences targeted
Media: It outlines the media vehicles to be used for the campaign
Measurement: It tells as to how the results of the campaign are to be
evaluated

Promotion, Events & Experiences , and Public
Relations..
Mission: Setting of objectives is done here. These can be informative,
persuasive, reminder or reinforcement advertising
Money: It calls upon deciding upon the advertising budget. It involves
various factors like stage in the Product Life Cycle, Market share and
consumer base, Competition and clutter, frequency of advertising and
substitutability of the product.
Message: It involves developing the advertising campaign, It being the
main element, requires the utmost precaution. It involves message
generation and evaluation. Thereafter it considers creative inputs to go
into the message and its execution also. This phase also has to
consider social responsibility of the company including legal aspects.

Relations..
Media: This involves the decision regarding media vehicle/s to be used
for carrying the message to its audiences. Media is to be considered
on the basis of the reach®, frequency (F) and impact ((I) of the
exposures.
Total number of exposures= RXF( Also called as Gross Rating points
(GRP))
Weighted number of exposures=RXFXI
On the basis of this calculations, the media options have to be chosen.
The following variable also need to be considered
a. Target audience media habits
b. Product characteristics c. Message characteristics d Cost

Relations..
Media…
Alternative advertising options may be Place advertising i.e., bill-
boards and public spaces. It also includes Product Placement in films
and TV Shows, Point of purchase communication and evaluating
alternative media
While selecting specific vehicles of media, one has to look into
circulation, audience, effective audience and effective ad-exposed
audience.
Media timing and allocation also needs to be decided. I t involves
choosing among continuity, concentration, flighting and pulsing.

Relations..
Measurement: It is important to measure the communication effect
of an ad on the awareness, knowledge or preference of the product
with the audience. It is done in two types of research.
a. Communication-effect research; Also called as copy testing, it seeks to
determine whether an ad is communicating effectively or not. This can be
done by taking consumer feedback from a sample of consumers asking a
series of questions to them. Portfolio tests can also be administered
where consumers are asked to listen or view a portfolio of
advertisements. Thereafter, they are asked to recall all the ads and their
content ,aided or un-aided by the interviewer. Laboratory tests can also
be used on a sample of consumers. It includes equipment to measure
physiological reactions-heart best, blood pressure, perspiration etc.

Relations..
Measurement..
b. Sales–effect Research: The effect of advertising on sales is difficult to
measure, however advertising and research in this direction continue to
get answer to this question as best as possible. Researchers try to
measure the sales impact through analyzing historical and experimental
data. The historical approach involves correlating past sales to past
advertising expenditures using advanced statistical techniques.

Relations..
Sales Promotion: It can be in any form but it should have objectives
and tools clearly identified. Objectives for consumers may be
encouraging purchase of larger sized units, generating trials among
non-users and attracting switchers from competitors brands. Objectives
for retailers may be persuading them to carry new items and higher
levels of inventory, encouraging off-season buying, encouraging
stocking of related items, offsetting competitive promotions, building
brand loyalty, and gaining entry into new retail outlets. Objectives for
sales force may be encouraging support of a new product or model,
encouraging more prospecting and stimulating off-season sales.

Relations..
Sales Promotion…
Tools for consumer promotion may be samples, coupons, cash refund
offers, price packs, gifts, purchase frequency programs, warranties,
Point-of-purchase displays and demonstrations.
Tools for Trade promotions may be price-off, allowance for advertising
or displaying to retailers or free goods of merchandise to
intermediaries who buy a certain quantity or a certain flavor or size.
Tools for Business and sales Promotion may be trade shows and
conventions, sales contests and specialty advertising through pens,
calendars, key chains, writing pads etc to identified business
audiences

Relations..
Events and Experiences: Sponsoring Events provide companies with
opportunities to obtain wider exposure for their brands, and in
influencing attitudes towards brands. Objectives of events can be
identifying with a particular target market or lifestyle, increasing
awareness of company or product name, creating or reinforcing
perceptions of key brand image associations, enhancing corporate
image, creating experiences and evoking feelings, expressing
commitments to the community on social issues, entertaining key
clients or rewarding key employees and permitting merchandising or
promotional activities. Major sponsorship decisions are choosing
events, designing sponsorship programs and measuring sponsorship
activities.

Relations..
Public Relations: A Public is any group that has an actual or potential
interest in or impact on a company’s ability to achieve its objectives.
Public Relations (PR) involves a variety of programs designed to
promote or protect a company’s image or its individual products. The
best PR departments of professional organizations spend time
counseling top management to adopt positive programs and to
eliminate questionable practices so that negative publicity does not
arise in the first place. Mainly, they perform following functions
a. Relations with the press b. Publicizing product/s through sponsorship/s
c. Corporate communications internally as well externally d. lobbying with
legislators and government officials to promote or defeat legislation and
regulation e. Counseling Management about public issues and company
positions, image during good and bad times.

Managing Personal Communications: Direct and
Interactive Marketing, Word of Mouth, and
Personal Selling
Direct Marketing (DM): It is the use of consumer-direct
(CD) channels to reach and deliver goods and services to
customers without using marketing middlemen. Direct
marketers can use a number of channels to reach
individual prospects and customers: direct mail, catalog
marketing, telemarketing, interactive TV, kiosks, Web sites,
and mobile services. It helps in de-massifying market,
focussed targeting and reaching prospects at right time.
However, DM is criticized on grounds of its capacity to
irritate people, being unfair to them, deceptive as well as
intruding into their privacy

Personal Selling…
Interactive Marketing: Marketing through internet provides
marketers and consumers with opportunities for much
greater interaction and individualization. Advantages are
customization of ad messages, instantaneous gauging of
response as well buying ad space on sites related to
Marketers offerings. However, it has disadvantages due to
consumers power to screen out communications perceived
undesirable by them.

Personal Selling…
Word of Mouth: When consumers talk about products and
services through internet, it is word of mouth. Companies
use this powerful tool to their advantage by making such
talk go in their favor ultimately. Social networking sites add
lot of activity around this fast emerging marketing tool. It
gets manifested in the form of buzz, opinion leaders being
used and blogging for and on behalf of companies.
However, it requires to be in control of this tool as this word
of mouth can also become negative. In such a case,
companies have to counter this negative effect and
minimize damage due to it as fast as possible.

Personal Selling…
Designing the Sales Force: The term sales representative
covers a broad range of positions. There sequencing from
the least to the most creative is as follows:
1.Deliverer is the one who mainly delivers the product/s to
assigned destination
2.Order taker can be inside the company taking the order on the
counter or outside the company negotiating with a distributor
or shopping mall manager for order/s
3. Missionary is the one who spreads positive word of mouth
about the company and does not takes any order
4. Technician who is highly sound technically and uses this
knowledge to get orders and also consults clients

Personal Selling…
Designing the Sales Force…
5. Demand creator is the one who uses creative inputs to sell products to
clients
6. Solution vendor is the sales person who solves the client’s problem with
his/her company’s products or services.
Sales Force objectives and Strategy: Objectives of Sales Force are
many and these depend upon the situations in which a sales person is
with respect to different orders. These can be prospecting, targeting,
communicating, selling, Servicing, collecting useful information
from market and allocating resources.

Personal Selling…
Sales Force Structure
Strategy will guide the structure. A company that
sells one product line to one end-using industry
with customers in many locations would use a
territorial structure. A Company that sells many
products to many types of customers might need a
product or market structure.

Personal Selling…
Sales Force Size
It can be determined on the basis of workload approach.
1. Customers are grouped into size classes according to annual sales
volume.
2. Desirable call frequencies (number of calls on an account per year) are
established for each class.
3. This call frequency is multiplied with its corresponding number of
accounts generating the total number of sales calls in the whole year
for the country.
4. The average number of sales call a representative can make in a year is
determined separately.
5. Output of 3 is divide by output of 4 to get the number of sales
representatives for the market in the whole year.

Personal Selling…
Sales Force Compensation: On the one hand, sales reps
want income regularity, extra reward for above average
performance and fair payment for experience and
longevity.
On the other hand, management wants control, economy
and simplicity. We do find conflicts at times and at times, it
appears very smooth sailing. Compensation to sales
people should involve a fixed amount (salary), a variable
amount (commissions, bonus, profit sharing etc), expense
allowances( expenses involved in traveling and
entertaining) and benefits( paid vacations, sickness or
accident benefits,pensions, and life insurance etc)

Personal Selling…
Managing the Sales Force
Recruiting and Selecting Representatives
It requires to assess the requirement of sales reps in
numbers as well as qualities required etc. It also calls
upon the company to develop its selection criteria.
In recruitment, the human resources wing of the company
seeks applicants by soliciting names from current sales
reps, using employment (placement) agencies, advertising
in media and contacting college students.

Personal Selling…
Managing the Sales Force…
Training and Supervising Sales Representatives
In order to have deep product knowledge, helping
customer’s use products more effectively besides being
efficient and reliable, new sales reps need to be trained
and supervised. Depending upon the products to be
handled, markets to be covered and the complexity of
selling task, this training is imparted.
Sales Rep productivity can be increased by creating
norms about calls for prospects, using sales time most
efficiently when time also gets spent in many non-sales
related work.

Personal Selling…
Motivating Sales Representatives
Sales reps usually work alone, have irregular work hours,
besides being away from home most of the time. They are
most of the times at receiving ends of their buyers and they
also do not posses the necessary authority to win order/s.
Also, it happens at times that inspite of hardwork, they do
not get the order.
All this makes them highly de-motivated from time to time.
Management needs to have them continuously motivated
to ward off such de-motivation regularly.

Personal Selling…
Motivating Sales Representatives….
To keep motivation at a high level, marketers re-inforce
intrinsic and extrinsic rewards of all types. The different
rewards are pay hike, promotion, performance based
incentives, personal growth and sense of accomplishment.
However, other rewards also include liking and respect,
security and recognition.
Company has to see that what motivates whom as
everything will not motivate everyone. This differential
motivational plan is difficult to administer but than nothing is
easy as motivation is concerned.

Personal Selling…
Evaluating Sales Representatives
Sales reps are evaluated on the basis of the information
available on their performance.
The major source of information are sales reports.
Additional info comes through personal information,
salesperson self reports, customer letters and
complaints, customer surveys and conversations with
other sales reps.
A Formal evaluation is also done on the various figures
related to a particular salesperson

Personal Selling…
Principles of Personal Selling
Selling one’s product through personal interaction is
personal selling. Companies spend millions of dollars each
year to train sales people in the art of selling. Through
these training, salesperson gets transformed from a
passive order taker into an active order getter who engages
in customer problem solving.

Personal Selling…
Principles of Personal Selling….
Steps in Personal Selling
1. Prospecting and qualifying : It requires to identify and qualify
prospects. Many Companies get it done so that sales people
concentrate on real selling.
2. Pre-approach: It goes into preparing for association with the
prospect company through finding it various details, setting
call objectives, info gathering, best contact method/s.
3. Presentation and Demonstration: It involves story telling
about the co product and relating it to features, advantages,
benefits and values to the prospect.

Personal Selling…
4. Overcoming objections: Customers usually have two types of
objections viz., Psychological and logical.
5. Closing: Now the salesperson attempts to close the sale by
using several techniques. Asking for the order, reworking the
points of agreement, indicating that the buyer may lose
something if order is not given now etc.
6. Follow-up and maintenance. With the order taken and
delivery committed, salesperson should establish necessary
details like delivery time, purchase terms, and other matters
that are important to the customer. Salesperson should
continue follow up and maintenance requirements regularly.

Personal Selling…
Negotiation
In negotiated exchange, price and other terms are set via
bargaining behavior. Here two or more parties negotiate
long-term binding agreements. Price is the most
frequently negotiated issue, but other issues which get
negotiated are contract completion time, quality of
goods and services offered, purchase volume,
responsibility for financing, risk taking, promotion, title
ownership and product safety.

Personal Selling…
Relationship Marketing
In many cases, the company is not seeking an immediate
sale, but rather to build a long term supplier-customer
relationship. Here the company demonstrates that it has
the capabilities to serve the account’s needs in a superior
way. However, relationship marketing has emerged as a
very strong tool for long term business and professional
relationships, it is not effective in all situations.
The company has to judge as to which segments and
which specific customers will respond positively to
relationship marketing.

Sources:-
• Koshy and kotler,Marketing Management.

Mm unit 4point3

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