Advertising & Promotions

An IMC Perspective

Chapter 1 An Introduction to Integrated Marketing Communications Kruti Shah Alan DSouza

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 communication
Purpose: Seek a cognitive, affective or behavioural response from the target audience Marketing communication mix

Unconventional tools

Advertising

Interactive tools

Sales Promotion

Direct Marketing

Public Relations

Integrated marketing communication

Advertising

Interactive tools

Sales Promotion

IMC
Unconventional tools Direct Marketing

Public Relations/ Publicity

The growth of advertising & promotions (India)

Year

Advertising expenditure (Rs. Crores) 21,000 17,690 14,505 11,915 10,354 9,329

% Growth over last year 20.0 22.0 21.7 15.1 10.9

2008 2007 2006 2005 2004 2003

The growth of advertising & promotions (Worldwide)

Advertising
Any paid form of nonpersonal presentation and promotion of ideas or products by an identified sponsor Objectives
Inform Persuade Remind Reinforce

Advertising
Strengths
Informs, persuades, reminds, reinforces

Weaknesses

Expensive

Builds brand equity

Cluttered

Can reach large audiences

Advertising types
Brand-building Public service Selectivedemand B2B

Tactical
-Direct response

Corporate

National

Advocacy

Trade

Retail

Primary-demand

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. b. c. d. e. Trade advertising B2B advertising Primary-demand advertising Selective-demand advertising Brand-building advertising

Sales promotion
Changes the price-value relationship of a product

Increases value OR OR Decreases price

Increases value AND Decreases price

Sales promotion tools

Rebates Sampling

oupons

Price discounts

onsumer sales promotion

ontests

Sweepstakes

Loyalty points

Point-ofpurchase

Price deals

Trade shows

Sales contests

Training programmes

Allowances

Trade sales promotion

ooperati e ad ertising

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
Tools One-to-one approach that uses advertising media to produce an inquiry, a transaction and some other immediate response No intermediary between manufacturer & customer Internet Requires a database Telemarketing Direct mail Direct response TV/radio Mail-order catalogues

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 organizations 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
Community Media PR Government hareholders Employees Customers

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 highvalue & high-deliberation products & niche audiences Weaknesses Expensive, not suitable for large audiences

Unconventional media
Packaging Customer service Events, Trade shows Novel Media POP

Advertising specialties

Sponsorships

Quick Q!
Which of the following tools of communication is likely to create the highest credibility among consumers?
a. b. c. d. e. Advertising Publicity Sales promotion Packaging 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

Jingle on The Midday show

School contact programmes

Interactive website

Chorus by dabbawallas

Pepsodent commercials

Encourage kids to brush teeth at night

Contest to write lyrics

12 lakh kids signed the pledge, campaign won EMVIES06

Why IMC?
Decreasing impact of advtg Changing compensation structure of agencies Tighter control over communication Need for a single brand custodian

New ways to reach consumers

Need for brand identity

Demand for greater accountability

Emphasis on relationship mktg

Growth of database mktg

Growth of international mktg

Kingfisher integrates the good times experience

The IMC model

Marketing plan (objectives & strategies)
Product

Promotion
Advertising

Integrated Marketing

Price

Low control messages

Sales Promotion

Place

IMC
Interactive tools Direct Marketing

Unconventional tools

Public Relations/ Publicity

Corporate objectives & strategies

IMC objectives & strategies

Marketing objectives & strategies

Situational analysis

Problem determination

Situational analysis

Marketing objectives

Budget determination

Communication objectives

Implementation tactics

Marketing strategies

IMC strategies

Implementation tactics

Monitor/evaluate performance

The IMC planning process

Monitor/evaluate perfomance

The IMC Plan

Situational analysis Pro le /opportunity eter ination Co unication o jectives Bu get eter ination IMC strategies I ple ent & onitor activities Evaluate the Planning process

Cadbury manages a crisis with IMC