Thank you friends for your reading

Tuesday, September 29, 2009

Consumer Behaviour ,Response to Communication Stimuli

Hi

this is collated for a quick review , understanding of the same.


A lot of understanding is drawn from "An Integrated Marketing Communications Perspective" from Belch & Belch

Friday, September 18, 2009

Integrated marketing communication process

With the media getting fragmented , budgets getting squeezed , consumers getting distracted an effective way being focussed nowadays is to target consumer touchpoints .


Involves coordinating various promotional tools ,marketing activities to form a message ,
rather than only relying on media advertising

-Get the consumer at touchpoints
-Avoid duplication
-Consistent message for the product /brand
-Maximise the ROI ,more cost effective
-Leverage on changing environment /behavior
-Focus on actual purchase /trials

Tools of IMC
-Advertising
-Direct marketing
-Interactive/internet marketing
-Sales promotion
-PR
-WOM
-Personal selling
-BTL
-POS

IMC planning process

-Review of marketing plan
-SWOT :environment/competition/TG/product/distribution/ manpower…
-Define the product message /TG/objective
-Understand the best mix of IMC basis the product /message /TG
-Understand the budget
-Develop IMC
-Message /strategy/tools of IMC/adapting the message
-Integrate the IMC strategy/execution
- Monitor/evaluate & control the IMC

POS
Participants of IMC

- Advertisers
-Agencies
-Media companies
-Marketing communication specialists
-Collateral services

Process towards defining the IMC for a product
  • understand : opportunity /competition/target market-TG
  • identify target markets - segment /define the positioning /product benefits
  • product decisions- product/pricing /packaging /placement-distribution channels/promotional activities/people/processess
  • elements of IMC which maximise the consumer touch-points and enable objectives
  • monitor /evaluate /replan
Consumer decision making process which IMC influences

-Problem recognition need/repeat purchase/desire/greed
-maslow’s heirarchy
-Psychoanalalytic theory –sigmund freud
-MR probes needs-in depth interview/FGD/associaiton tests/projecting techniques
-Information search
-Alternatives evaluation
-Purchase decision
-Post purchase evaluation –cognitive dissonance
-Recommendation-WOM

examples abound
-Nano launch (Tata) ,Ghajini (Aamir Khan) , Virgin Airlines (Richard Branson) ,Hero Honda ( MTV roadies )

Depending on the stage of PLC of a product , IMC can work to address objectives like -
St
  • awareness
  • Recall
  • Trials
  • Informative
  • Consumption
  • Repeat purchase
St

Celebrity endoresements

With more and more companies thinking it as the way to break clutter , it is relevant to reflect on the same.

Stage of the product - It depends on what stage of the product life cycle is the brand in.

Is it a strategic decision over 4, 5 years- brand value must remain consistent with the value of the celebrity being endorsed in terms of personality, positioning. So even if the celebrity changes the values remain consistent ..

Celebrity–brand match: , strong enough so that the endorsements are able to strongly influence the thought processes of consumers and create a positive perception of the brand ?

Constant monitoring mechanism : Are we able to monitor the behavior, conduct and public image of the celebrity continuously to minimize/maximize any potential.

Brand over endorser: should ensure that this does not happen by formulating advertising collaterals and other communications

Celebrity endorsement is just a channel: it is one part of the communication mix that falls under the broader category of marketing. I have observed that the teams/ sales /CP

Celebrity ROI: should have a system combining quantitative and qualitative measures to measure the overall effect of celebrity endorsements.

Small SKU's are again the darling of the consumers..The Magic Price point -SMALL is buyable

Good day biscuit - Rs 5/- ;Nestea at Rs 2/-; Lux at Rs 10/-; pepsico has started advertsising its Kurkure in packs of Rs 3/- and Rs 5/-

The escalating prices have forced the consumers to lap the low ..CONVENIENTLY priced small vol units . Companies like HUL,ITC,Frito lays ,Britannia are all encouraging the same .Last year claim the companies the small SKU's contributed around 25/30% of their sales.

Cigarette companies/confectionary companies /haircare companies have all been working on convenient price points for a long time . It helps substitute for - change which is not available / it helps dispose of unnecesary Rs 2/, Rs 5/, Rs 1 coins ...it helps define the price points for the companies .Earlier when 10p/20p/50 p was available the pricing of cigarettes/toffees/chewing gum was such .Later on with the shortage of coins it started moving towards the most conveniently available coin.

However nowadays affordability /accessability alongwith

-the inflationary pressures on prices of products
-the choice /options/variants available
-the reduced shelf space to stock
-the reduced space to merchandise
-abundant distribution

all of it makes a small conveniently priced product a good option for generating trails /repeat purchase and the acceptability of a consumer to stock multiple variants.



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