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
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

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)

% Growth over last year

2008
2007 2006

21,000
17,690 14,505

20.0
22.0 21.7

2005
2004 2003

11,915
10,354 9,329

15.1
10.9

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 (3 for 2 offer) Decreases price ( 10 % discount )

Sales promotion tools

Rebates Contests Sampling Sweepstakes

Coupons

Loyalty points

Price discounts

Consumer sales promotion

Point-ofpurchase

Price deals

Trade shows

Sales contests

Training programmes

Allowances

Trade sales promotion

Cooperative advertising

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 Requires a database

Direct mail Direct response TV/radio Mail-order catalogues

Internet
Telemarketing

Direct marketing
Strengths
Highly targeted Measurable Personalization & customization possible Two-way communication Relationship building

Weaknesses
Expensive Not suitable for large audiences

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

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

The publics of PR
Community Media
PR Government Shareholders Employees

Customers

Publicity/PR

Strengths
Builds goodwill Low cost

Weaknesses
Little control Hidden costs

Reaches many audiences

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

POP Novel Media

Events, Trade shows

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 gold for Best Media Innovation ( Radio category) EMVIES06

Pepsodent increases recall and consumption with IC

Problem: Maturing Sales Insight: Research indicated that while mothers wanted their kids to brush regularly at night, kids often avoided it. Objective: Promote the habit of brushing ones teeth at night among kids Media: A tv commercial introduced Bhoot Police that fights Bhoot

contd
Commercial of aarti to God Groups of parents, teachers and dabbawalas were invited to sing the jingle in a live chorus on popular radio stations A contest for parents to pen their own lyrics on this topic A contest for children to become the Bhoot Police. School contact programme Website launched 12 lakh children signed the pledge- Pepsodent

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 Problem/opportunity determination Communication objectives Budget determination IMC strategies Implement & monitor activities Evaluate the Planning process

Cadbury manages a crisis with IMC