INTEGRATED MARKETING

COMMUNICATION

1
 COURSE OBJECTIVE:

This course introduces students to the

basic concepts of advertising and sales
promotion and how business
organizations and other institutions
carry out such activities.

2
 COURSE OUTCOME

Insight into the importance of

advertising and sales promotion
campaigns planning and objective
setting in relation to consumer decision
making processes.

3
 Books For Reference
Advertising & Sales Promotion by
Kazmi & Batra
Advertising & Sales Promotion by Aakar
& Batra
Advertising & Sales Promotion by
S.L.Gupta & V.V. Ratna

4
INTRODUCTION TO ADVERTISEMENT

Concept –definition-scope-Objectives-
functions-principles of advertisement –
Social, Economic and Legal
Implications of advertisements – setting
advertisement objectives –
Advertisement Agencies – Selection
and remuneration – Advertisement
campaigns – case studies.
5
 UNIT - 1

Introduction To
Unit -1
Advertisement

Introduction to Advertising

6
7
8
9
Advertising’s Role in the Marketing Plan

10
Marketing Communication Mix
Advertising

Packaging Personal
Selling
How the Marketer May
Point-of- Communicate With Sales
Sale Target Markets. Promotion

Direct Public
Marketing Relations
11
 What is Advertising?

Advertising is Paid, Nonpersonal

Communication From An Identified
Sponsor Using Mass Media to
Persuade or Influence an Audience.

12
 Broad Dimensions That
Characterize Great Advertising
The Ultimate Test for the Greatness of An Ad is Whether
It Achieved Its Goals.

Strategy Creativity

Execution

13
Objectives - Advertisement

To cause Awareness.
To Persuade.
To create Image.
To Remind

14
15
 Advertising Publicity
Paid Form Non Paid Form
Openly Sponsored Done By Media ,
Advertiser
Positive Objectives Either Negative or
Positive
Planned presentation Organisation doesn’t have
about the features any control
Media Decisions Organisation doesn’t have
taken by advertiser any control
Matter is not believed It is believed relatively
100 % more than advertising 16
 Functions Of Advertisement
Primary Functions
 To increase sales volume
 To persuade channel intermediaries
 To assist channel intermediaries
 To increase usage of the product
 To create brand awareness
 To build confidence in brand
 To eliminate seasonal fluctuations
 To raise the standard of living
 To build positive attitude towards a product
category.
17
Secondary Functions
 To encourage salesman
 To furnish information
 To generate confidence in the present
employees
 To attract better employees
 To instill confidence in the minds of various
groups of public customers, employees,
channel intermediaries, suppliers, media
etc.
18
 Characteristics of Great Ads

Good or Great Ads Work on Two Levels

Satisfy the Customer’s

Objectives by Engaging Achieve the Sponsor’s
Them & Delivering a Objectives
Relevant Message
19
20
 The Evolution of Advertising
1441- 1850’s- 1900- 1920’s
1850 1900 1950’s

Industrial
Age of Age of Rise of
Revolution &
Print Science Agencies
Consumer Society

World War I- 1950’s 1960’s- 1970’s-

World War II 1970’s 1990’s

Reintroducing
Advertising Creative Accountability
Consumers to
Declines Era Era
Marketing

21
 History
Egyptians used papyrus to make sales messages and
wall posters
Wall or rock painting for commercial advertising in Asia,
Africa, South America
cobbler, miller, tailor or blacksmith would use an image
associated with their trade such as a boot, a suit, a hat, a
clock, a diamond, a horse shoe, a candle or even a bag
of flour.
Fruits and vegetables were sold in the city square from
the backs of carts and wagons and their proprietors used
street callers (town criers) to announce their
whereabouts for the convenience of the customers.
In the 17th century advertisements started to appear in
weekly newspapers in England.
22
23
 HISTORY OF ADVERTISING
1704 1st newspaper ad, seeking buyer for an
Oyster Bay was published.
1836, French newspaper La Presse was the first
to include paid advertising in its pages
1843 1st Ad. Agency set up in Philadelphia
1882 Advertising of a soap brand was done with a
huge budget of 11000 US$.
1893 A famous beverage brand was registered as
a trade mark.
1899 J. Walters: 1st agency opens an office in U.K.

24
1920s, first radio stations were established
1923 1st entertainment program was sponsored
by an advertiser
1947 J .Walter Thompson 1st agency to cross
100Mil $ in billing.
1978 1st TV commercial is launched.
1990 A new Medium Internet is born.
1993 5 million internet users get on line.
1999 Internet advertising breaks 2 Billion US$
mark.
2003 TV show with built in advertising is
planned.

25
History of Indian Advertising
Concrete advertising history begins with classified
advertising

Press advertisements – largely imported goods which

had reached Indian shores
Ads appear for the first time in print in Hickey's Bengal
Gazette. India's first newspaper (weekly).

Studios mark the beginning of advertising created in

India (as opposed to imported from England) Studios
set up for bold type, ornate fonts, more fancy, larger
ads

Newspaper studios train the first generation of

visualisers & illustrators 26
Major advertisers: Retailers like Spencer's,
Army & Navy and Whiteaway & Laidlaw
Marketing promotions: Retailers' catalogues
provided early example
Ads appear in newspapers in the form of lists
of the latest merchandise from England
Patent medicines: The first brand as we know
them today were a category of advertisers
Horlicks becomes the first 'malted milk' to be
patented on 5th June 1883 (No. 278967).

27
1905 - Dattaram & Co claims to be the oldest
existing Indian agency in Girgaum in
Bombay.
1920s D J Keymer gives rise to Ogilvy &
Mather and Clarion.
1925 LR Swami & Co, Madras formed
1929 J Walter Thompson Co Pr. Ltd formed

28
 1930’s
The talkies and radio emerge as media
Colour movies
1934 Venkatrao Sista opens Sista Advertising
and Publicity Services as first full service Indian
agency
1936 Indian Broadcasting Company becomes
All India Radio (AIR)

29
 1940’s
2nd World War
Famine
Fight for Independence

30
 1950’s
Watershed years for Indian advertising
Industrial revolution in the Nehruvian era
1st survey of the rural market (Wood)
vans used for advertising
Cinema advertising began
Kolkata gets the privilege of India’s first ad
club
Leading ad agency - Press Syndicate

31
 1960’s
India’s first Advertising Convention (1960)
Advertising to to be Indian in thought and
content
Shift to marketing orientation
Professionalisation within agencies
1st Asian Advertising Congress at New Delhi
Research data generated
MRI (Market Rating Indices)
Creativity was emphasised
Photography find increasing use
Social marketing
32
 1970’s
Media boom
Special magazines
2nd Asian Advertising Congress at New Delhi
Lifestyle studies, positioning
Rural marketing
1973 RK Swamy/BBDO established
1978 First television commercial seen

33
 1980’s
Indianisation of western advertising
Public sector advertising
Expansion and diversification of agencies
Aug 15th 1982 – Colour TV introduced
Radio commercials introduced
Colour Printing more popular
Regional broadcasts, expansion of radio
Formation of Indian chapter of
International Advertising Association
Concept of sponsored programmes on TV
1980 - Mudra Communications Ltd set up
34
 1990’s
Niche magazines
1991 - First India-targetted satellite channel, Zee
STAR (Satellite Transmission for Asia Region) TV
starts broadcast
CNN – 1st channel to be beamed to India
DD Metro to counter satellite channels
DD Audience surveys
Movie channels and pay channels
FM Radio
1996 Sun TV becomes the first regional TV channel to go live
24 hours a day on all days of the week
Internationalisation of Advertising
Emphasis on Brand Equity
Consumer Tracking and Satisfaction studies
1997 Advertising on the Internet gains popularity

35
 2000
CAS
Internationalisation of domestic
agencies
Net Advertising
The role of the advertising agency –
changing to that of a marketing
consultant

36
 Types of Advertising
Interactive Brand
Advertising Advertising

Public Service
Retail or Local
Advertising
Advertising

Institutional
Advertising Political
Advertising
Business-to-
Business Directory
Advertising Advertising
Direct-Response
Advertising
37
 Roles of Advertising
Marketing Role •Marketing is the process a business
uses to satisfy consumer needs and
wants through goods and services.

Communication Role
•Advertising is a form of mass
communication.

Economic Role •Two main views about advertising,

either the market power model or the
economics of information theory.

•Informs us about new and

Societal Role improved products, teaches us how
to use these innovations, etc.
38
Current Advertising Issues
Interactive Advertising

Integrated Marketing Communication

Globalization

Niche Marketing

Consumer Power, Relationship Marketing

and Customization
39
 Social, Ethical, and
Economic Aspects of
Advertising

40
Advertising and Promotion: Two Viewpoints
Proponents Argue That
Advertising and Promotion:

Encourages Creates Jobs and

Provides
A Higher Standard Helps New Firms
Information
Of Living Enter a Market

Promotes
Competition in
The Marketplace

Critics Argue That Advertising and

Promotion

Promotes
Creates Needs and Is More
Materialism,
Wants Among Propaganda
Insecurity and
Consumers Than Information
Greed 41
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Controversies About Advertising
Public criticism
Advertising’s effect on prices
Promote or discourage competition?
Affect on overall consumer demand.
Effects on consumer choice and the overall
business cycle
Societal effects
 More materialistic?
 Forces us to buy things we don’t need?
 Reach us subliminally?
 Debase our language?

42
Ethics in Advertising and Promotion

Moral principles and values that govern the

actions of and individual or group

A Marketing or Marketers Must

Not All Issues Promotion Action Make Decisions
Can Be May Be Legal but Regarding the
Regulated Not Considered Appropriateness
Ethical of Their Actions

43
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising and Promotion as
Untruthful or Deceptive

General Mistrust of Advertising and

Among Consumers. Many Do Not
Perceive Ads As Honest or Believable

Abuses Involving Sales Promotions

Such As Contests, Sweepstakes,
Premium Offers

Unethical And/or Deceptive Practices

Involving Mail Order, Telemarketing and
Other Forms of Direct Marketing

Internet Scams and Abuses

44
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 The Social
Advertising Impact or
as Offensive of in
Advertising
Bad Taste

Deception in Advertising
The Subliminal Advertising Myth
The Effect of Advertising on Our Value
System
The Proliferation of Advertising
The Use of Stereotypes in Advertising
Offensiveness in Advertising

45
Cultural Consequences of Advertising

Advertising
Does Advertising
Make People
Make
People
BuyBuy
Things
Things
They
They Don’t
Don’t Need?
Need

Does
Advertising
Advertising
Encourage
Encourage Materialism?
Materialism

46
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Advertising and Stereotyping
Portrayal of Women to
Reflect Their Changing
Role in Society

Portrayal of
Gender
Criticisms of Women As
Stereotyping
Advertising Sex Objects
With Regard to
Stereotyping

Ethnic
Portrayal of Stereotyping/
The Elderly Representation
of Minorities
47
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising and Children
Children's TV
Watching Behavior

Children between ages Television is an

2-11 watch on average important source of
21.5 hours of TV per information for
week and may see children about products
22,000 commercials
per year

48
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Perspectives on Advertising to Children
Consumer Advocates Argue That
Children Are Vulnerable to
Advertising Because:

They Lack the

They Cannot
Knowledge and
Differentiate
Skills to Critically
Between Programs
Evaluate
and Commercials
Advertising Claims

While Marketers Argue That:

Children Must Learn Need to Acquire

Through the Skills Needed
Socialization To Function in the
Process Marketplace
49
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
What is your opinion of this ad?

Is This Woman Portrayed As

a Sex Object?

Does This Ad Contain

Cues That Are Sexually
Suggestive?

Does This Ad Present an

Image of Sexual
Submissiveness?
50
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Do Advertisers Control the Media?

Advertising Is the Primary Source

of Revenue for Newspapers,
Magazines, and Television and
Radio Networks and Stations

The Media’s Dependence on

Advertising For Revenue Makes
Them Vulnerable To Control by
Advertisers

Advertisers May Exert Control

Over The Media by Biasing
Editorial Content, Limiting
Coverage of Certain Issues or
Influencing Program Content
51
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Do Advertisers Control the media?

They Must Report the News

Fairly and Accurately to Retain
Public Confidence

Advertisers Need the Media

More Than the Media Need Any
One Advertiser

The Media Maintain Separation

Between News and Business
Departments “The Wall”

52
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Role of Advertising in the Economy

Making Consumers Aware of

Products and Services

Providing Consumers With

Information to Use to Make
Purchase Decisions

Encouraging Consumption
+ and Fostering Economic
Growth

53
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Economic Impact of Advertising

Effects on Consumer Choice

• Differentiation
• Brand Loyalty

Effects on Competition
• Barriers to entry
• Economies of scale

Effects on product costs and prices

• Advertising as an expense that
increases the cost of products
• Increased differentiation

54
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Economic Impact of Advertising
Effect on the Value of Products
Effect on Prices
Effect on Competition
Effect on Consumer Demand
Effect on Consumer Choice
Effect on the Business Cycle
The Abundance Principle

55
 Advertising Helps New
Competitors Enter the Market

56
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin