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Amity School of Business
Identify target audience
Determine objectives
Design communications
Select channelsEstablish budgetDecide on media mix
Measure results Manage IMC
Steps in Developing Effective Communications
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Amity School of Business
• Step 1: Identifying the Target Audience– Affects decisions related to what, how, when, and
where message will be said, as well as who will say it
• Step 2: Determining Communication Objectives– Objectives may be set to move buyers through
the six readiness stages
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Amity School of Business
• Step 3: Designing a Message– AIDA framework guides message design– Message content
• Rational • Emotional appeals: fear, humor, guilt, shame, love• Moral appeals
• Designing a Message– Message structure
• Draw a conclusion?• One-sided or two-sided?• Strongest arguments
presented first or last?
– Message format Novelty, contrast, and more
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Amity School of Business
• Step 4: Choosing Media– Personal communication channels
• Includes face-to-face, phone, mail, and Internet chat communications
• Word-of-mouth influence is often critical• Buzz marketing cultivates opinion leaders
– Nonpersonal communication channels• Includes media, atmosphere, and events
• Step 5: Selecting the Message Source– Highly credible sources are more persuasive– A poor choice of spokesperson can tarnish a brand
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Amity School of Business
• Setting the Total Promotional Budget– Affordability Method
• Budget is set at a level that a company can afford
– Percentage-of-Sales Method• Past or forecasted sales may
be used– Competitive-Parity Method
• Budget matches competitors’ outlays
Setting the Promotional Budget and Mix
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Amity School of Business
• Setting the Total Promotional Budget– Objective-and-Task Method
• Specific objectives are defined
• Tasks required to achieve objectives are determined
• Costs of performing tasks are estimated, then summed to create the promotional budget
Setting the Promotional Budget and Mix
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Amity School of Business
• Setting the Overall Promotion Mix– Determined by the nature of each promotional
tool and the selected promotion mix strategy
Setting the Promotional Budget and Mix
Revlon emphasizes advertising while Avon emphasizes personal selling
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Amity School of Business
Factors in Setting the Mix
Product Life-Cycle Stage
Buyer-Readiness Stage
Type of Product Market
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A comparison of push and pull promotional strategies
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Amity School of BusinessSetting the Promotional
Budget and Mix
• Reaches large, geographically dispersed audiences, often with high frequency
• Low cost per exposure, though overall costs are high
• Consumers perceive advertised goods as more legitimate
• Dramatizes company/brand• Builds brand image; may
stimulate short-term sales• Impersonal; one-way
communication
AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
Nature of Each Promotional Tool
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Amity School of BusinessSetting the Promotional
Budget and Mix
• Most effective tool for building buyers’ preferences, convictions, and actions
• Personal interaction allows for feedback and adjustments
• Relationship-oriented• Buyers are more attentive• Sales force represents a long-
term commitment• Most expensive of the
promotional tools
AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
Nature of Each Promotional Tool
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Amity School of BusinessSetting the Promotional
Budget and Mix
• May be targeted at the trade or ultimate consumer
• Makes use of a variety of formats: premiums, coupons, contests, etc.
• Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging sales
• Stimulates quick response• Short-lived• Not effective at building long-
term brand preferences
AdvertisingPersonal SellingSales PromotionPublic RelationsDirect Marketing
Nature of Each Promotional Tool
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Amity School of BusinessSetting the Promotional
Budget and Mix
• Highly credible• Many forms: news stories, news
features, events and sponsorships, etc.
• Reaches many prospects missed via other forms of promotion
• Dramatizes company or benefits• Often the most underused
element in the promotional mix
AdvertisingAdvertisingPersonal SellingPersonal SellingSales PromotionSales PromotionPublic RelationsPublic RelationsDirect MarketingDirect Marketing
Nature of Each Nature of Each Promotional ToolPromotional Tool
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Amity School of BusinessSetting the Promotional
Budget and Mix
• Many forms: Telephone marketing, direct mail, online marketing, etc.
• Four characteristics:– Nonpublic– Immediate– Customized– Interactive
• Well-suited to highly targeted marketing efforts
AdvertisingAdvertisingPersonal SellingPersonal SellingSales PromotionSales PromotionPublic RelationsPublic RelationsDirect MarketingDirect Marketing
Nature of Each Nature of Each Promotional ToolPromotional Tool
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• Step 6: Collecting Feedback– Recognition, recall, and behavioral measures
are assessed– May suggest changes in product/promotion
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Amity School of Business
Corporate communications Marketing communications
Aim building company's reputation brand building
Scope of communication
Company / Enterprise product/produce or service provided by the company
Target Audience multiple stakeholders customer
Mode multiple channels defined set of channels
Creativity less room for creativity more room for creativity
Consistency With corporate identity, image, philosophy; product & brand attributes
With product and brand attributes
Corporate Communication V/S Marketing Communications