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MARKETING COMMUNICATIONS

ADVERTISING
AND PROMOTION

Faculty : Dr. Ravindra P.SAXENA


An Introduction to
Integrated
Marketing
Communications
What is Marketing?
• An organizational
function Value

• Processes for creating,


communicating, and Relationship marketing

delivering value to
customers Mass customization
• Managing customer
relationships in ways Customer relationship
that benefit the management (CRM)

organization and its


stakeholders
The Four P Components of the
Marketing Mix
The Four P Components of the
Marketing Mix

• For making a successful marketing strategy


the 4 Ps of marketing should correspond to
the 4 Cs of the target market.
4 Ps of Marketing 4 Cs of Target Market
• PRODUCT CUSTOMER NEEDS
AND WANTS
• PRICE COST TO THE
CUSTOMERS
• PLACE CONVENIENCE
• PROMOTION COMMUNICATION
4 Ps of Marketing Mix

Product Price

Place Promotion

Utilities created by marketers for


customers:
• Product or service utility
• Possession utility / price utility
• Time utility
• Place utility
What is promotion……?

• “ Promotion is the co-ordination


of seller’s efforts to set up
channels of information and
persuasion to facilitate the sales
of goods/services or acceptance
of an idea. ”
What is promotion……?

To Inform To Persuade
PROMOTION

To Modify Behavior To Remind


PROMOTIONAL TOOLS
(THE PROMOTION MIX)

Advertising Publicity
PROMOTION

Sales Personal
Promotion Direct Selling
Marketing
ELEMENTS OF
PROMOTION MIX
Five Major methods used for
promotion (Promotion Mix)
1.Advertising : Any paid form of non-
personal presentation and promotion of
ideas, goods or services by an identified
sponsor.
2.Publicity : Non-personal stimulation of
demand for a product or service or
business unit by planting commercially
significant news about it in a published
medium or obtaining favorable
presentation of it upon radio, T.V., or stage
that is not paid for by the sponsor.
McDonald’s reminded the public of its support for
the Olympics with a series of advertisements.
ELEMENTS OF
PROMOTION MIX
3.Personal Selling : Oral presentation in a
conversation with one or more
prospective purchasers for the purpose
of making sales.
4.Direct Marketing : Has several forms -
direct mail, telemarketing, electronic
marketing and so on. It has a few
distinctive characteristics non – public /
customized / Up- to- Date (Messages
can be prepared very quickly for an
individual) .
ELEMENTS OF
PROMOTION MIX

5.Sales Promotion : All those marketing


activities – other than advertising,
publicity ,personal selling and direct
marketing that stimulate consumer
purchasing and dealer effectiveness such
as displays, shows & exhibition,
demonstrations and various non –
recurrent selling efforts. These are usually
short term activities
Traditional
Marketing Mix

Product Price Promotion Distribution

Advertising Sales Promotions Personal Selling

Database Direct Sponsorship Internet Guerilla Alternative


Marketing Marketing Marketing Marketing Marketing Marketing
Traditional Marketing Approach
Sales
Special
Point of promotion
events
purchase Interactive
marketing

Media
Packaging
Adver-
tising
Public
relations
Publicity Direct
Direct
marketing response
Contemporary IMC Approach
Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events
Defining IMC

IMC is a strategic business process used


to plan, develop, execute and evaluate
coordinated, measurable, persuasive brand
communication programs with consumers,
customers, prospects employees and other
relevant external and internal audiences.

The goal of IMC is to generate


short-term financial returns and
build long-term brand value.
INTEGRATED MARKETING
COMMUNICATIONS
• IMC - combining and integrating
different elements of the
communication mix.
• The key idea behind IMC, however, is
simply that advertising has various
strengths and weaknesses and that it
thus has to be combined with the
other elements of the communication
mix - in an integrated and consistent
way.
(Contd.)
INTEGRATED MARKETING
COMMUNICATIONS
• The different elements of the
communications mix have to be used in a
way that the strengths of one are used to
offset the weakness of another.
• For instance, one of advertising’s weakness
is its frequent failure to induce immediate
action. Very often advertising can create
high awareness and favorable attitudes, but
it can not create the final “push” needed to
get the inquiry, trial, or sale. When such a
situation appears, a marketer must use
direct marketing, or sales promotions, to get
the necessary action, possibly after an
advertising campaign.
INTEGRATED MARKETING
COMMUNICATIONS
Integrated Marketing Communications is
the coordination and integration of all
marketing communication tools, avenues
and sources within a company into a
seamless program which maximizes the
impact on consumers and other end-users
at a minimal cost. The IMC includes all
business-to-business, channel, customer,
external communications and internal
communications.
IDEAS INVOLVED IN IMC APPROACH
Despite the increasing use of the
term IMC approach by both
practitioners and academics in recent
years, there is little agreement on
what the term actually means.
According to one recent review, at
least two related ideas are involved :
• One-voice Marketing Communications
• Integrated Communications
IDEAS INVOLVED IN IMC APPROACH

• I. One-voice Marketing
Communications As consumers
increasingly being to be addressed
by the same marketer in a variety
of different ways ( i.e. through 5
tools of promotion) - there is a
need to ensure a consistency of
positioning, message, and tone
across these different media. These
different communications must
reach consumers with one voice.
IDEAS INVOLVED IN IMC APPROACH

• II. Integrated Communications


A marketer’s consumer communications need to not
only raise brand awareness, or create or change brand
preference and image, or to get sales trial or
repurchase, but to do all of the above at the same time.
Increasing image without getting a sales result is not
good enough and getting short-term sales (e.g. via
sales promotion) at the expense of a brand’s long-term
image is also courting disaster. Thus , all marketing
communications should attempt to simultaneously
achieve targeted communication goals (e.g. raising
attitudes or building image) and lead to some
behavioral action (e.g. trial or repurchase).
Contemporary Perspective
of IMC

Recognized as a business process

IMC Importance
Multiple of relevant
relevant audience
audiences

Demand for accountability and


Demand for accountability
measurement of outcomes
Growing Importance of IMC
• Strategic integration of
communications functions
– Avoids duplication
– Synergy among promotional tools
– More efficient and effective marketing
• Rapidly changing environment
– Consumers
– Technology
– Media
Behind the Growing Importance of IMC
From Toward
Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability Greater agency accountability

Traditional compensation Performance-based compensation

Limited Internet availability Widespread Internet availability


The Role of IMC in Branding
• Brand identity is a combination of
– Name
– Logo IMC plays a major role in
developing and sustaining
– Symbols brand identity and equity

– Design
– Packaging
– Performance
– Image or associations
Finding New Ways to Build
Brands
• Consumers are driving the trend
– They view brands as a form of
self-expression
– They know more about brands and the
companies that make them
– They seek and share information with
other consumers via the Internet
Finding New Ways to Build
Brands
• Get consumers involved
– Apple Computer lets consumers test
products in store
– Starbucks positions stores as a
community gathering place
• Interaction can be the best
marketing
– MySpace
– Facebook
– Google
The Promotional Mix
Advertising

Direct Marketing

Interactive/
Internet Marketing

Sales Promotion

Publicity/Public
Relations

Personal Selling
Advertising
• Paid forms of non-personal
communication
– About an organization, product, service,
or idea by an identified sponsor
– No feedback from audience
– Important for products and services
aimed at mass consumer markets
– Cost effective
The Most Common Forms of Advertising
National Advertising

Retail/Local Advertising

Primary vs. Selective


Demand Advertising
Consumers

Business-to-Business Advertising

Professional Advertising

Trade Advertising
Organizations
Direct Marketing
Direct
Mail
Direct
Internet Response
Sales Advertising

Direct
Marketing
Shopping
Telemarketing
Channels

Catalogs
Interactive/Internet
Marketing
• Back-and-forth communication
– Users participate in and modify the form
and content of information
– Happens in real time
• Interactive media
– Internet
– CD-ROMs
– Kiosks
– Digital cell phones
Using the Internet as an IMC Tool
The
Internet

Educates or A persuasive A sales tool


informs advertising or an actual
customers medium sales vehicle

Obtains Provides Builds and


Communicates
customer customer maintains
and interacts
database service and customer
with buyers
information support relationships
Sales Promotion
Coupons
Samples
Trade Allowances
Premiums
Contest/Sweepstake POP Displays
Refunds/Rebates Training Programs
Bonus Packs Trade Shows
Loyalty Programs
Coop Advertising
Events

Consumer-oriented Trade-oriented
[For end-users] [For resellers]
Sales Promotion

• Most of the promotional budget now


goes to sales promotion
– Declining brand loyalty
– Increased consumer sensitivity to “deals”
– Larger and more powerful retailers are
demanding more trade promotion support
Advertising Versus Publicity
Factor Advertising Publicity

Control Great Little

Credibility Lower Higher

Reach Measurable Undetermined

Frequency Schedulable Uncontrollable

Cost High/Specific Low/Unspecified

Flexibility High Low

Timing Specifiable Tentative


Publicity Vehicles
Feature
Articles

News
Interviews
Releases Publicity
Vehicles

Press Special
Conferences Events
Public Relations

Systematically planning and


distributing information in an attempt
to control and manage image and the
nature of the publicity received.
Public Relations Tools
Cause-related
Marketing

Publicity Special
Vehicles Publications

Community Corporate
Activities Advertising

Public Affairs Special Event


Activities Sponsorship
Personal Selling

• Person-to-person communication
– A seller attempts to assist and/or
persuade prospective buyers to make a
purchase or act on an idea
IMC Audience Contact Tools
Public
Broadcast Internet/
Print media Relations/
media interactive
publicity

Out-of-home Direct
media marketing

Target Audience
Personal Sales
selling Promotion

Point-of- Word-of- Events and Product


purchase mouth sponsorship placements
The IMC Planning Process
• Developing an integrated marketing
communications plan requires

Planning
Executing
Evaluating
Controlling
Basic Elements of a Marketing Plan
1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance


Model of the IMC Planning Process
Review of marketing plan

Analysis of Promotional program situation

Analysis of communications process

Budget determination

Develop integrated marketing communications program

Sales PR/ Personal Direct Internet/


Advertising
promotion publicity selling marketing interactive

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program