Advertising & Promotions

An IMC Perspective

Chapter 1
An Introduction to
Integrated Marketing Communications

Kruti Shah
Alan D’Souza
 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
Mark
create exchanges that
eting
satisfy individual and
organizational
objectives.”

- American Marketing Association

 Marketing communication
• Purpose: Seek a
cognitive, affective
or behavioural Unconve
ntional
Advert
ising
response from the tools

target audience Interacti Sales

ve tools Promotion

• Marketing Direct
Marketin
Public
Relations
g
communication mix
Integrated marketing communication

Interacti Advert
ve tools ising

Unconven IMC Sales

tional
Promotion
tools

Public
Direct
Relations/
Marketing
Publicity
The growth of advertising & promotions
(India)

Year Advertising % Growth over

expenditure last year
(Rs. Crores)
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

 Advertising types

Selective-
Brand-building Public service
demand

Tactical Corporate B2B

-Direct response

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

Changes the price-value relationship of a product

Increases Increases
value value

OR OR AND

Decreases Decreases
price price
 Sales promotion tools
Rebate
Contes
Sampli Sweep
Coupo s ts Loyalty
ng stakes
ns
Price points
Point-of-
discounts Consumer
purchase
sales
promotion

PriceTrade
Training
Salesdeals
shows
programm
contests es
Allowa Cooperativ
e
nces advertising
Trade
sales
promotion
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

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

Strengths

Highly targeted

Measurable

Personalization & customization possible

Two-way communication

Relationship building
 Publicity
• Non-personal Tools
communication by • Press releases
• Press conferences
third-party sources
• Special events
regarding an • Opinion polls
organization’s products • Interviews
• Contests
• Weblog writeups…
 Public relations
• Positively influencing Tools
public opinion to build • Publicity tools
goodwill, and earn • Community affairs
appreciation and
• Events and
acceptance
conventions
• May result in publicity
• Corporate advertising
• Lobbying…
The publics of PR
 Publicity/PR

Strengths
Builds goodwill
Low cost
Reaches many audiences
 Internet as a
communication tool

Strengths

Direct, interactive

Low in cost

Personalized

Targeted

Up-to-date

Less intrusive
 Internet tools

Websites

Emails

Blogs

Discussion forums

Online games…
Axe creates a sensation!
 Personal selling
• Personal presentation by a
representative of an Strengths
organization with the • Targeted, flexible,
purpose of influencing interactive, measurable,
consumer buying decision, offers immediate
making a sale, or building feedback, ideal for high-
value & high-deliberation
long-term relationships products & niche
audiences

Weaknesses
• Expensive, not suitable
for large audiences
 Unconventional media

Packaging
Customer
POP
service
Novel
Events, Media Advertising
Trade shows specialties

Sponsorships
 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

Jingle on ‘The School contact Interactive Chorus by

Midday show’ programmes website dabbawallas

Encourage kids
Pepsodent
to brush teeth Contest to
commercials at night write lyrics

12 lakh kids signed the pledge,

campaign won EMVIES’06
 Why IMC?

New ways to
Decreasing
reach
impact of advtg
consumers

Demand for
Growth of
greater
database mktg
accountability

Growth of Emphasis on
international relationship
mktg mktg

Changing Tighter control

compensation over
structure of agencies
communication

Need for a
Need for
single brand
custodian brand identity
 Kingfisher integrates
‘the good times’ experience
 The IMC model
Marketing plan
(objectives & strategies)

Integrate
d
Marketin
g
Low
control
Adver
messages tising

Interac Sales
tive
tools
IMC Promoti
on

Unconv Direct
entional Marketi
tools Public ng
Relations/
Publicity
 Corporate objectives & IMC objectives &
strategies strategies

Situational Problem Communicati

analysis determination on objectives

Marketing objectives &

strategies IMC
strategies
Budget
determination

Monitor/
Implementa
evaluate
tion tactics perfomance
Situational Marketing
analysis objectives

Marketing
strategies

Monitor/
Implementa evaluate
tion tactics performance

The IMC planning process

The IMC Plan
Cadbury manages a crisis with IMC