Advertising & Promotions

An IMC Perspective

An Introduction to Integrated Marketing Communications

Chapter takeaways

Learn about the various promotional tools Appreciate interrelation and integration of various promotional tools Comprehend the IMC model and programme

Integrated communication for Incredible India

Result

The IMC model

Marketing plan (objectives & strategies)
Advertising
Promotion Product

Low control messages

Sales Promotion

Integrated Marketing

Price

Interactive tools

IMC
Public Relations/ Publicity

Place

Direct Marketing

Unconventio nal tools

Marketing communication
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.
Advertising

Interactive tools

Sales Promotion

IMC
Unconventional tools Direct Marketing

Public Relations/ Publicity

The growth of advertising & promotions (India)

Year 2012

Advertising expenditure (Rs. Crores) 28,013 (annually growing at 9% pa)

source: http://www.exchange4media.com

2008 2007 2006

21,000 17,690 14,505

2005
2004 2003

11,915
10,354 9,329

Global Advertising Forecast

MAGNAGLOBAL, a division of IPG Mediabrands released an updated global advertising forecast. The key findings from the report show: 2011 global growth is revised down to +4.7% (downgraded by 0.5%), totaling $427 billion. 2012 global growth is revised to +5.0% (downgraded by -1.5%), totaling $449 billion. Quadrennial events, combined with the scale and dynamism of the BRIC countries (Brazil, Russia, India, and China) will help sustain global growth despite worsening economic outlook. They contribute to 45% of the global growth in 2011. Internet will become the second biggest media category in 2011, reaching a 20% global market share in 2012. China will become the second largest advertising market in 2012, outgrowing Japan.

Beyond the BRICs: the next wave of emerging ad markets Adspend growth (2014 v 2011)
US$ million, current prices. Currency conversion at 2010 average rates.
Source: ZenithOptimedia

1 2 3 4 5 6 7 8 9 10

China Russia Indonesia Brazil South Africa Argentina India Turkey Mexico South Korea

Estimated Adspend growth US$ million (2014) 16,439 4,418 3,768 2,972 2,050 1,812 1,571 1,435 1,092 1,016

IMC Model

Develop an IMC Mix

Push and Pull Strategies

PUSH strategy

Producer

PULL strategy

Retailers and Wholesalers

Retailers and Wholesalers

Consumers

Consumers

Advertising
Any paid form of nonpersonal presentation and promotion of ideas or products by an identified sponsor Objectives
Inform Persuade Remind Reinforce

What is Advertising?
Three criteria have to be met for a communication to be classified as advertising:
The communication must be paid for. The communication must be delivered through mass media. The communication must be an attempt to persuade.

Role of Advertising in the Promotion Mix

1. 2. 3. 4. 5. Information and persuasion Introduction of new brandsextensions Building brand loyalty/brand equity Creating an image/meaning Building brand loyalty in the trade channel

Mercedes SL What does it bring to mind?

http://www.youtube.com/watch?v=ZDNWFlhrWo4

Advertising
Strengths
Informs, persuades, reminds, reinforces

Weaknesses

Expensive

Builds brand equity

Cluttered

Can reach large audiences

Kinds of Advertising
Primary demand stimulation Selective demand stimulation

Direct response advertising

Delayed response advertising

Corporate advertising

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

Nimbooz 2009 From Pepsico

Brand History Nimbooz was launched in India on the 28th of February 2009. Indias first nationally available packaged Nimbu Pani.
Brand Advantage The brand delivers very strongly on certain expectations. These are: Locally Relevant Taste Nimbooz has capitalized on the existing familiarity with and high consumption of home-made nimbu pani. It has remained true to its authentic Indian Identity by using the traditional Matka (Earthen Pot) and Squeezer in the manufacturing process. Convenience and Great Value The product is available in three convenient formats, 350ml PET, 200ml RGB and 200ml Tetra at the remarkable price points of Rs15, Rs 10 and Rs 10 respectively. Accessibility Nimbooz is Indias first nationally available packaged Nimbu Pani. Hygienic It is just like home-made nimbu pani. You can enjoy its natural and delicious lemony refreshment anywhere you go. QUICK BRAND FACTS It was launched in India in 2009.

Nimbooz by 7UP is an authentic drink thats made with real lemon juice squeezed from the best of lemons. It has No Fizz & no added Artificial Flavours.

It is tasty and 100% hygienic and is available in trendy and convenient packs, so that you can enjoy natural delicious, lemony refreshment anytime, anywhere

Nimbooz by 7UP. Refreshing Nimbu pani with Real lemon Juice.

Insight
Our culture is rich and deep rooted. No matter how much we migrate to a modern lifestyle, its only when we enjoy truly familiar & authentic experiences (albeit in a contemporary way) that we can relish being our true selves.

Brand Idea
Enjoy Being My Asli Self

Brand Role
The ASLI Indian Refresher

Nimbooz creative brief Get busy Indian men and women Who have adopted a modern lifestyle but still love their (Indian) tradition To try Nimbooz, the real nimbu paani with real lemon juice
By telling them Nimbooz is the cool way to enjoy a traditional favourite

Nimbooz Launch Objective

The objective of the promotion was to communicate the launch of the brand Nimbooz with the proposition Ekdum Asli Indian (Absolutely Real Indian). which is a refreshing Nimbu Paani (Lemonade) with Asli (Real) Lemon Juice

Launch Package

Launched in Delhi, U.P., Haryana, Punjab, Maharashtra and Gujrat on 18th March 08. Launched in the above cities with TV, Radio, OOH, Press and BTL. Association with Kings XI Punjab cricket team.

Total Work
Radio
MyFM Big FM

Red FM

Radio Mirchi

T.V

Nimbooz

OOH

15 different channel Including IPL (setmax)

Billboards Bus Shelters Innovations

Hindustan Times
Hindi Hindustan Amar Ujala

Press ads
Punjab Kesari Dainik Bhaskar

Mobile Van

Press Ads Teaser Launch

Invite and Give away

Invite and give away sent to the Opinion leader/Bottlers/Media on the occasion of the launch

INVITE/ GIVE AWAY

Retail Package
POS was done to create impact across all the mediums and drive consumption

Poster

Range look To highlight all three packs

Banner

Gate

Flange

Streamer

The brands proposition of Ekdum Asli Indian (Absolutely Real Indian) was brought alive on outdoors in some very interesting ways.
Here are some examples.

Jute Bag Installation Location: Mumbai

Day 3

Day 2

3 days to go for the real thing

Day 1

2 days to go for the real thing

Launch Day

1 day to go for the real thing

Giant Squeezer Bottle Installation and Outdoor Mechanized Moving Squeezer Location: Delhi, UP, Punjab, Haryana, Jaipur

Teaser

Outdoor Mechanized Moving Squeezer

Reveal

IPL Indian Premier League

Our association with Kings XI Punjab cricket team

For 2009, Nimbooz was a part sponsor for Kings XI Punjab as Punjab is one of the key markets of Nimbooz .Therefore, the objective was to encourage general public into sampling the product and make this sponsorship regionally pertinent. This offered people from all over Punjab an opportunity to dance with the Kings XI Punjab in South Africa.

Outdoor Communication

Translation Drink Nimbooz and dance with Kings XI Punjab in South Africa

Kings XI Tableau Mechanics of the Promo: The Tableau was made to go around all the major cities in Punjab in the span of 7 days. The participants were expected to come and give dance auditions at the tableau, where winners were selected on the basis of their performance and were given an opportunity to dance with Kings XI Punjab team in South Africa.

Independence day Campaign Media: Radio and Outdoor

 Nimbooz celebrated Independence Day in Asli Indian style using Kite as a device. On that day, 200,000 kites were distributed in Delhi and NCR

Nimbooz TV Ad

High and Low Control Messages

Quick Q!
Which of the following tools of communication is likely to create the highest credibility among consumers?
a. b. c. d. e. Advertising WOM 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

Cadburys Dairy Milk Shubh Aarambh (Consume Instead of Traditional Sweets)

FM Radio talk shows where people interacted

Facebook

Cadburys commercials

Encourage people to consume Cadbury Milk Chocolate

Mid Days New Years Ad with a Chocolate attached

Hoardings at CST

Increase Perceived Value

Shubh Aarambh

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

Cadbury Worm Crisis in Oct 2003

Crisis Management and Communication through an IMC Plan

Sales promotion
Changes the price-value relationship of a product

Increases value OR OR Decreases price

Increases value
AND

Decreases price

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

Weaknesses
Short-term results

Direct impact on sales

Measurable Clears extra inventory Fights competitive promotions

Makes consumers deal prone

May erode brand equity & loyalty Cluttered

Gets trade support

Less expensive than advertising

Direct marketing
Tools One-to-one approach that uses advertising media to produce an inquiry, a transaction and some other immediate response

Direct mail
Direct response TV/radio Mail-order catalogues Internet

No intermediary between manufacturer & customer Requires a database

Telemarketing

Direct marketing
Strengths
Highly targeted
Measurable

Weaknesses
Expensive
Not suitable for large audiences

Personalization & customization possible

Two-way communication Relationship building

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 Shareholders Employees Customers

Publicity/PR

Strengths
Builds goodwill

Weaknesses
Little control

Low cost Reaches many audiences

Hidden costs Difficult to measure

No direct impact on sales

Internet as a communication tool

Strengths
Direct, interactive Low in cost Personalized Targeted

Weaknesses
Smaller audiences Difficult for non-savvy audiences

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 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

Sponsorships