Professional Documents
Culture Documents
An IMC Perspective
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
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
Product
Promotion
Marketing
Price
Place
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
Interactive tools
Sales Promotion
IMC
Unconventional tools Direct Marketing
Year
Advertising expenditure (Rs. Crores) 21,000 17,690 14,505 11,915 10,354 9,329
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
Cluttered
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
oupons
Price discounts
ontests
Sweepstakes
Loyalty points
Point-ofpurchase
Price deals
Trade shows
Sales contests
Training programmes
Allowances
ooperati e ad ertising
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
Weaknesses
Smaller audiences Difficult for non-savvy audiences
Internet tools
Websites Emails Blogs Discussion forums Online games
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
Interactive website
Chorus by dabbawallas
Pepsodent commercials
Why IMC?
Decreasing impact of advtg Changing compensation structure of agencies Tighter control over communication Need for a single brand custodian
Promotion
Advertising
Integrated Marketing
Price
Sales Promotion
Place
IMC
Interactive tools Direct Marketing
Unconventional tools
Situational analysis
Problem determination
Situational analysis
Marketing objectives
Budget determination
Communication objectives
Implementation tactics
Marketing strategies
IMC strategies
Implementation tactics
Monitor/evaluate performance
Monitor/evaluate perfomance