Advertising & PromotionsAn IMC Perspective

Kruti Shah

Alan D’Souza

Chapter 1

An Introduction to

Integrated Marketing Communications

Chapter takeaways

• Understand marketing and marketing

communication

• Learn about the various promotional tools

• Understand IMC, its evolution and importance

• Appreciate interrelation and integration of various

promotional tools

• Comprehend the IMC model and programme

Integrated communication for Incredible

India

Marketing

• “The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.”

- American Marketing Association

Marketing

Product

Price

Place

Promotion

Marketing communication

• Purpose: Seek a

cognitive, affective

or behavioural

response from the

target audience

• Marketing

communication mix

Advertising

Sales Promotion

Public RelationsDirect Marketing

Interactive tools

Unconventional tools

Integrated marketing communication

IMC

Advertising

Sales Promotion

Direct Marketing

Public Relations/ Publicity

Unconventional tools

Interactive tools

The growth of advertising & promotions

(India)

Year Advertising

expenditure

(Rs. Crores)

% Growth over

last year

2008 21,000 20.0

2007 17,690 22.0

2006 14,505 21.7

2005 11,915 15.1

2004 10,354 10.9

2003 9,329

The growth of advertising & promotions

(Worldwide)

Advertising

• Any paid form of non-personal presentation and promotion of ideas or products by an identified sponsor

• Objectives– Inform

– Persuade

– Remind

– Reinforce

Advertising

Strengths

Informs, persuades, reminds,

reinforces

Builds brand equity

Can reach large

audiences

Weaknesses

Expensive

Cluttered

Advertising types

Brand-building

Tactical-Direct response

National

Public serviceSelective-

demand

Corporate

Advocacy

Primary-demandRetail

B2B

Trade

…

Quick Q!

Ramroti Ltd. has come up with a first-of-its-kind portable device that can make up to 500 rotis at a time. Which of the following types of advertising is most important to sell the product?a. Trade advertising

b. B2B advertising

c. Primary-demand advertising

d. Selective-demand advertising

e. Brand-building advertising

Sales promotion

Increases

value

Decreases

price

Increases

value

Decreases

price

OR OR AND

Changes the price-value relationship of a product

Trade sales

promotionAllowances

Sales contests

Price dealsTrade shows

Training programmes

Cooperative advertising

Sales promotion tools

Consumer sales

promotion

Price discounts

Coupons

Sampling

Rebates Contests

Sweepstakes

Loyalty points

Point-of-purchase

Balancing sales promotion:

How much is too much?

Strengths

Immediate results

Direct impact on sales

Measurable

Clears extra inventory

Fights competitive promotions

Gets trade support

Less expensive than advertising

Weaknesses

Short-term results

Makes consumers deal prone

May erode brand equity & loyalty

Cluttered

Direct marketing

• One-to-one approach that uses advertising media to produce an inquiry, a transaction and some other immediate response

• No intermediary between manufacturer & customer

• Requires a database

Direct mail

Direct response TV/radio

Mail-order catalogues

Internet

Telemarketing…

Tools

Direct marketing

Strengths

Highly targeted

Measurable

Personalization & customization possible

Two-way communication

Relationship building

Weaknesses

Expensive

Not suitable for large audiences

Publicity

• Non-personal

communication by

third-party sources

regarding an

organization’s products

Tools

• Press releases

• Press conferences

• Special events

• Opinion polls

• Interviews

• Contests

• Weblog writeups…

Public relations

• Positively influencing

public opinion to build

goodwill, and earn

appreciation and

acceptance

• May result in publicity

Tools

• Publicity tools

• Community affairs

• Events and

conventions

• Corporate advertising

• Lobbying…

The publics of PR

PR

Media

Community

Government

Shareholders

Customers

Employees

Publicity/PR

Strengths

Builds goodwill

Low cost

Reaches many audiences

Weaknesses

Little control

Hidden costs

Difficult to measure

No direct impact on sales

Internet as a

communication tool

Strengths

Direct, interactive

Low in cost

Personalized

Targeted

Up-to-date

Less intrusive

Weaknesses

Smaller audiences

Difficult for non-savvy audiences

Internet tools

Websites

Emails

Blogs

Discussion forums

Online games…

Axe creates a sensation!

Personal selling

• Personal presentation by a representative of an organization with the purpose of influencing consumer buying decision, making a sale, or building long-term relationships

Strengths

• Targeted, flexible, interactive, measurable, offers immediate feedback, ideal for high-value & high-deliberation products & niche audiences

Weaknesses

• Expensive, not suitable for large audiences

Unconventional media

Novel

Media

Customer

service

Packaging

Events,

Trade shows

Sponsorships

POP

Advertising

specialties

Quick Q!

Which of the following tools of communication is likely to create the highest credibility among consumers?

a. Advertising

b. Publicity

c. Sales promotion

d. Packaging

e. Personal selling

Integrated marketing communication

(IMC)

• Various promotional tools provide consistent messages to target audiences for clarity, consistency & impact

• One voice, one message, one strategy

Pepsodent Bhoot Police

Pepsodent

commercials

Jingle on ‘The

Midday show’

Contest to

write lyrics

School contact

programmes

Interactive

website

Chorus by

dabbawallas

Encourage kids

to brush teeth

at night

12 lakh kids signed the pledge,

campaign won EMVIES’06

Why IMC?

Decreasing impact of advtg

New ways to reach consumers

Demand for greater

accountability

Growth of database mktg

Growth of international mktg

Emphasis on relationship mktg

Tighter control over

communication

Changing compensation

structure of agencies

Need for a single brand custodian

Need for brand identity

Kingfisher integrates

‘the good times’ experience

The IMC model

Marketing plan (objectives & strategies)

Integrated Marketing

Product

Price

Place

Promotion

IMC

Advertising

Sales Promotion

Direct Marketing

Public Relations/ Publicity

Unconventional tools

Interactive tools

Low control messages

The IMC planning process

Corporate objectives & strategies

Situational analysis

Marketing objectives

Marketing strategies

Implementation tactics

Monitor/evaluate performance

Situational analysis

Problem determination

Communication objectives

Budget determination

IMC strategiesImplementation

tactics

Monitor/evaluate perfomance

Marketing objectives & strategies

IMC objectives & strategies

The IMC Plan

Evaluate the

Planning process

Situational analysis

Problem/opportunity

determination

Communication objectives

Budget determination

IMC

strategies

Implement & monitor

activities

Cadbury manages a crisis with IMC