ASP-2009 BATCH

CLASS 2

Evolution of IMC
• A task force from the American Association of Advertising Agencies (the “4As”) developed one of the first definitions of integrated marketing communications: • a concept of marketing communications planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines— for example, general advertising, direct response, sales promotion, and public relations—and combines these disciplines to provide clarity, consistency, and maximum communications impact

• The 4As’ definition focuses on the process of using all forms of promotion to achieve maximum communication impact. • Consumers’ perceptions of a company and/or its various brands are a synthesis of the bundle of messages they receive or contacts they have, such as media advertisements, price, package design, direct-marketing efforts, publicity, sales promotions, websites, point-of-purchase displays, and even the type of store where a product or service is sold.

interest groups. investors. . and the general public. suppliers.• The IMC approach helps companies identify the most appropriate and effective methods for communicating and building relationships with their customers as well as other stakeholders such as employees.

• Tom Duncan and Sandra Moriarty note that IMC is one of the “new-generation” marketing approaches being used by companies to better focus their efforts in acquiring. retaining. and developing relationships with customers and other stakeholders. .

. as they collectively create.• They have developed a communicationbased marketing model that emphasizes the importance of managing all corporate or brand communications. or weaken the customer and stakeholder relationships that drive brand value. maintain.

marketing-mix activities.• Messages can originate at three levels— corporate. and marketing communications—since all of a company’s corporate activities. . and marketing communications efforts have communication dimensions and play a role in attracting and keeping customers. marketing.

and ways of responding to inquiries. various aspects of a firm’s business practices and philosophies. hiring practices. philanthropies. corporate culture. . such as its mission. all have dimensions that communicate with customers and other stakeholders and affect relationships.• At the corporate level.

• For example. a high price may symbolize quality to customers. or the image of the stores in which it is sold. its brand name. its packaging. appearance. .• Consumers make inferences about a product on the basis of elements such as its design. pricing. performance. service support. and where and how it is distributed. as may the shape or design of a product.

high-status products. jewelry stores.• Montblanc uses classic design and a distinctive brand name as well as high price to position its watches and pens as high-quality. • This upscale image is enhanced by the company’s strategy of distributing its products only through boutiques. and other exclusive retail shops. .

• Many companies are realizing that communicating effectively with customers and other stakeholders involves more than traditional marketing communications tools. . as well as advertising agencies. are embracing the IMC approach and adopting total communication solutions to create and sustain relationships between companies or brands and their customers. • Many marketers.

.The Promotional Mix: The Tools for IMC • Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.

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product. service. or idea by an identified sponsor. • The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. .Advertising • Advertising is defined as any paid form of non personal communication about an organization. • An occasional exception to this is the public service announcement (PSA). whose advertising space or time is donated by the media.

• The non personal component means that advertising involves mass media (e.g. radio. • Therefore. TV. • The non personal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (except in direct-response advertising). magazines. .. often at the same time. newspapers) that can transmit a message to large groups of individuals. before the message is sent. the advertiser must consider how the audience will interpret and respond to it.

it can be a very cost-effective method for communicating with large audiences. .• There are several reasons why advertising is such an important part of many marketers’ promotional mixes. First.

since 1980 Absolut has used creative advertising to position its vodka as an upscale. • For example. fashionable. sophisticated drink and differentiate it from other brands.• Advertising can be used to create brand images and symbolic appeals for a company or brand. • The advertising strategy has been to focus attention on two unique aspects of the product: • the Absolut name and the distinctive shape of the bottle . a very important capability for companies selling products and services that are difficult to differentiate on functional attributes.

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• Popular advertising campaigns attract consumers’ attention and can help generate sales. • For example. promotional displays. • These popular campaigns can also sometimes be leveraged into successful integrated marketing communications programs. and other merchandising activities . Eveready used the popularity of its Energizer Bunny campaign to generate support from retailers in the form of shelf space.

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• Eveready has extended its integrated marketing efforts to include tie-ins with sports marketing and sponsorships. and sweepstakes feature the pink bunny. . premium offers.• Consumer promotions such as in-store displays. • Pictures of the Energizer Bunny appear on Energizer packages to ensure brand identification and extend the campaign’s impact to the point of purchase.

Milk Mustache campaign. . which began in 1995. has been to change the image of milk and help reverse the decline in percapita milk consumption in the United States. • The goal of this campaign.

Classifications of advertising • ADVERTISING TO CONSUMER MARKETS .

National Advertising • Advertising done by large companies on a nationwide basis or in most regions of the country. or uses and to create or reinforce its image so that consumers will be predisposed to purchase it. benefits. • Most of the ads for well-known companies and brands that are seen on prime-time TV or in other major national or regional media are examples of national advertising. . • The goals of national advertisers are to inform or remind consumers of the company or brand and its features. advantages.

or patronize a particular establishment. . so their promotions often take the form of direct-action advertising designed to produce immediate store traffic and sales. atmosphere.Retail/Local Advertising • Advertising done by retailers or local merchants to encourage consumers to shop at a specific store. or merchandise assortment • Retailers are concerned with building store traffic. • Retail or local advertising tends to emphasize specific patronage motives such as price. image. service. use a local service. hours of operation.

since the challenge is to sell customers on the product concept as much as to sell a particular brand. its brand dominates a market and will benefit the most from overall market growth. . • Most advertising for products and services is concerned with stimulating selective demand and emphasizes reasons for purchasing a particular brand.versus SelectiveDemand Advertising • Primary-demand advertising is designed to stimulate demand for the general product class or entire industry. for example. • Selective-demand advertising focuses on creating demand for a specific company’s brands. • An advertiser might concentrate on stimulating primary demand when.Primary. • Primary-demand advertising is often used as part of a promotional strategy to help a new product gain market acceptance.

• ADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS .

Business-to-Business Advertising • Advertising targeted at individuals who buy or influence the purchase of industrial goods or services for their companies. • Business services such as insurance.. office supplies. travel services.g. . and health care are also included in this category. are used in manufacturing other goods (machinery). computers). or are used to help a company conduct its business (e. • Industrial goods are products that either become a physical part of another product (raw material or component parts).

or professors to encourage them to use a company’s product in their business operations. engineers.Professional Advertising • Advertising targeted to professionals such as doctors. lawyers. • It might also be used to encourage professionals to recommend or specify the use of a company’s product by end-users. . dentists.

.Trade Advertising • Advertising targeted to marketing channel members such as wholesalers. • The goal is to encourage channel members to stock. and resell the manufacturer’s branded products to their customers. distributors. promote. and retailers.

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