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
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