Unit 1 Advt

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
Understanding marketing
Marketing is a vast field that encompasses many
activities:
A hawker pricing his wares is marketing
A hotel manager taking customer feed back is marketing
A barber placing his big hoarding announcing his
services is marketing
A movie theatre distributing cinema tickets through
internet is also marketing
Street hawkers selling
bags and sunglasses
in central Rome, Italy
Marketing is not simply selling and advertising
These functions are only the tip of the marketing
iceberg.
Marketing is a composite of many activities related to
customer need fulfillment and satisfaction.
Today Young discipline of marketing is born to
improve the relationship between buyers and sellers
In mid 1900s several factors like competition and
greater consumer awareness led companies to mend
their old selling ways and focus more on consumer
satisfaction and long-term relationships.
This led to the development of Marketing concept
that placed customer at the center of all business.
All functions from production to selling were relegated
to the end, to be performed only after finding out what
customer wanted ,where and how.
In essence marketing is customer centered and
products are often developed to meet the needs of
groups of customers , or at times, specific customers
Marketing includes many tasks right from identifying
the customer needs and wants and fulfilling them.
This includes marketing research,
This includes
Marketing research
New product development
Distribution management
Pricing
Promotion
Analysis of competition
The American marketing association defines
marketing as the process of planning and executing
the conception, pricing, promotion and distribution of
ideas goods and services to create exchanges to
satisfy individual and organizational objectives.
Marketing is not limited to the exchange of tangible
goods, but can be for various types of entities
goods,services,people,places,events,properties,orga
nisations,information,experiences and ideas.
What do you think is marketed at the fun park or
amusement park
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
Marketing communication
Purpose: Seek a
cognitive, affective
or behavioural
response from the
target audience
Marketing
communication mix
The growth of advertising & promotions

(India)
Year
Advertising
expenditure
(Rs. Crores)
% Growth over
last year
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)
Integrated marketing communication

For many years, the promotional function in most
companies was dominated by mass-media
advertising.
Companies relied primarily on their advertising
agencies for guidance in nearly all areas of
marketing communication. Most marketers did use
additional
promotional
and
marketing
communication tools, but sales promotion and
direct-marketing agencies as well as package
design firms were generally viewed as auxiliary
services and often used on a per-project basis.

Public relations agencies were used to manage the
organizations publicity, image, and affairs with
relevant publics on an ongoing basis but were not
viewed as integral participants in the marketing
communications process

Many marketers built strong barriers around the
various marketing and promotional functions and
planned and managed them as separate practices,
with different budgets, different views of the market,
and different goals and objectives.
These companies failed to recognize that the wide
range of marketing and promotional tools must be
coordinated to communicate effectively and present
a consistent image to target markets.

The Evolution of IMC
During the 1980s, many companies came to see the
need for more of a strategic integration of their
promotional tools. These firms began moving toward
the
process
of
integrated
marketing
communications (IMC), which involves coordinating
the various promotional elements and other
marketing activities that communicate with a firms
customers.

As marketers embraced the concept of integrated
marketing communications, they began asking their
ad agencies to coordinate the use of a variety of
promotional tools rather than relying primarily on
media advertising.
A number of companies also began to look beyond
traditional advertising agencies and use other types
of promotional specialists to develop and implement
various components of their promotional plans.

Many agencies responded to the call for synergy
among the promotional tools by acquiring PR, sales
promotion, and direct-marketing companies and
touting themselves as IMC agencies that offer onestop shopping for all their clients promotional needs.
Some agencies became involved in these nonadvertising areas to gain control over their clients
promotional programs and budgets and struggled to
offer any real value beyond creating advertising..

However, the advertising industry soon recognized
that IMC was more than just a fad. Terms such as
new advertising, orchestration, and seamless
communication were used to describe the concept of
integration

DEFINITION OF IMC
A task force from the American Association of Advertising
Agencies (the 4As) developed one of the first definitions
of integrated marketing communications:
A concept of marketing communications planning that
recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of
communication disciplines for example, general
advertising, direct response, sales promotion, and public
relationsand combines these disciplines to provide
clarity, consistency, and maximum communications
impact.

The 4As definition focuses on the process of using
all forms of promotion to achieve maximum
communication impact
However, advocates of the IMC concept, such as
Don Schultz of North western University argue for
an even broader perspective that considers all
sources of brand or company contact that a
customer or prospect has with a product or
service.

Schultz and others note that the process of
integrated marketing communications calls for a
big-picture approach to planning marketing and
promotion programs and coordinating the various
communication functions. It requires that firms
develop a total marketing communications strategy
that recognizes how all of a firms marketing
activities, not just promotion, communicate with its
customers.

Consumers perceptions of a company and/or its
various brands are a synthesis of the bundle of
messages they receive or contacts they have, such
as media advertisements, price, package design,
direct-marketing efforts, publicity, sales promotions,
websites, point-of-purchase displays, and even the
type of store where a product or service is sold.

The integrated marketing communications approach
seeks to have all of a companys marketing and
promotional activities project a consistent, unified
image to the marketplace. It calls for a centralized
messaging function so that everything a company
says and does communicates a common theme and
positioning.

The reasons for adopting IMC approach by
marketers
Many companies have adopted this broader perspective
of IMC. They see it as a way to coordinate and manage
their marketing communications programs to ensure that
they give customers a consistent message about the
company and/or its brands.
For these companies, the IMC approach represents an
improvement over the traditional method of treating the
various marketing and communications elements as
virtually separate activities.

marketers
The IMC approach helps companies identify the most
appropriate and effective methods for communicating and
building relationships with their customers as well as
other stakeholders such as employees, suppliers,
investors, interest groups, and the general public.

The reasons for adopting IMC approach by marketers
There are a number of reasons why marketers are adopting

the IMC approach. A fundamental reason is that they
understand the value of strategically integrating the various
communications functions rather than having them operate
autonomously.
By coordinating their marketing communications efforts,
companies can avoid duplication, take advantage of synergy
among promotional tools, and develop more efficient and
effective marketing communications programs.
Advocates of IMC argue that it is one of the easiest ways
for a company to maximize the return on its investment in
marketing and promotion.

marketers
The move to integrated marketing communications
also reflects an adaptation by marketers to a
changing environment, particularly with respect to
consumers, technology, and media. Major changes
have occurred among consumers with respect to
demographics, lifestyles, media use, and buying and
shopping patterns.
For example, cable TV and more recently digital
satellite systems have vastly expanded the number
of channels available to households

marketers
Even as new technologies and formats create new ways for
marketers to reach consumers, they are affecting the more
traditional media. Television, radio, magazines and
newspapers are becoming more fragmented and reaching
smaller and more selective audiences

marketers
In addition to facing the decline in audience size for many
media, marketers are facing the problem of consumers being
less responsive to traditional advertising.
They recognize that many consumers are turned off by
advertising and tired of being bombarded with sales
messages.
These factors are prompting many marketers to look for
alternative ways to communicate with their target audiences,
such as making their selling messages part of popular culture.

The major reasons for growing importance of
IMC approach
A major reason for the growing importance of the IMC approach is
the ongoing revolution that is changing the rules of marketing and
the role of the traditional advertising agency.
Major characteristics of this marketing revolution include:
A shifting of marketing dollars from media advertising to other forms of
promotion, particularly consumer- and trade-oriented sales promotions.
Many marketers feel that traditional media advertising has become too
expensive and is not cost-effective. Also, escalating price competition in
many markets has resulted in marketers pouring more of their
promotional budgets into price promotions rather than media advertising.

IMC approach
A movement away from relying on advertising-focused approaches, which
emphasize mass media such as network television and national magazines, to
solve communication problems. Many companies are turning to lower-cost, more
targeted communication tools such as event marketing and sponsorships, direct
mail, sales promotion, and the Internet as they develop their marketing
communications strategies.

IMC approach
A shift in marketplace power from manufacturers to retailers. Due to
consolidation in the retail industry, small local retailers are being
replaced by regional, national, and international chains. These large
retailers are using their clout to demand larger promotional fees and
allowances from manufacturers, a practice that often siphons money
away from advertising. Moreover, new technologies such as
checkout scanners give retailers information on the effectiveness of
manufacturers promotional programs. This is leading many
marketers to shift their focus to promotional tools that can produce
short-term results, such as sale promotion.

IMC approach
The rapid growth and development of database marketing. Many
companies are building databases containing customer names;
geographic, demographic, and psychographic profiles; purchase
patterns; media preferences; credit ratings; and other characteristics.
Marketers are using this information to target consumers through a
variety of direct-marketing methods such as telemarketing, direct
mail, and direct-response advertising, rather than relying on mass
media. Advocates of the approach argue that database marketing is
critical to the development and practice of effective IMC.

IMC approach
Demands for greater accountability from advertising agencies and
changes in the way agencies are compensated. Many companies
are moving toward incentive-based systems whereby compensation
of their ad agencies is based, at least in part, on objective measures
such as sales, market share, and profitability. Demands for
accountability are motivating many agencies to consider a variety of
communication tools and less expensive alternatives to mass-media
advertising.

IMC approach
The rapid growth of the Internet, which is changing the very nature of
how companies do business and the ways they communicate and
interact with consumers. The Internet revolution is well under way,
and the Internet audience is growing rapidly. The Internet is an
interactive medium that is becoming an integral part of
communication strategy, and even business strategy, for many
companies

IMC approach
This marketing revolution is affecting everyone involved in the marketing
and promotional process. Companies are recognizing that they must
change the ways they market and promote their products and services.
They can no longer be tied to a specific communication tool (such as media
advertising); rather, they should use whatever contact methods offer the
best way of delivering the message to their target audiences Most agencies
recognize that their future success depends on their ability to understand
all areas of promotion and help their clients develop and implement
integrated marketing communications programs

IMC approach
Another major reasons for the growing importance of
integrated marketing communications over the past decade is
that it plays a major role in the process of developing and
sustaining brand identity and equity

IMC approach
Brand identity and equity
Building and maintaining brand identity and equity
require the creation of well-known brands that have
favourable, strong, and unique associations in the
mind of the consumer

IMC approach
Brand identity is a combination of many factors,
including the name, logo, symbols, design, packaging,
and performance of a product or service as well as the
image or type of associations that comes to mind when
consumers think about a brand. It encompasses the
entire spectrum of consumers awareness, knowledge,
and image of the brand as well as the company behind it.
It is the sum of all points of encounter or contact that
consumers have with the brand, and it extends beyond
the experience or outcome of using it.

The major reasons for growing importance of IMC
approach
These contacts can also result from various forms of
integrated marketing communications activities used by a
company, including mass-media advertising, sales promotion
offers, sponsorship activities at sporting or entertainment
events, websites on the Internet, and direct-mail pieces such
as letters, brochures, catalogs, or videos. Consumers can also
have contact with or receive information about a brand in
stores at the point of sale; through articles or stories they see,
hear, or read in the media; or through interactions with a
company representative, such as a salesperson

IMC approach
A successful IMC program requires that marketers
find the right combination of communication tools and
techniques, define their role and the extent to which
they can or should be used, and coordinate their use

The concept of
communication
Integrated
marketing
IMC is a management concept that brings together all tools of

marketing communication to send consisting messages to target
audiences
A target audience is the group of consumers whom marketing
communication messages are directed. A company cannot succeed
when it targets everybody in its marketing program
There will be some people who have greater need and interest in the
product, ability to buy at the quoted price, access to the companys
distribution channel and potential to receive and responds to
messages. These people should be chosen as part of the company's
target audience.

The concept of Integrated marketing c
Communication
Instead of dividing communications into several
overlapping areas, IMC unifies each communication
element to deliver consistent messages with one
voice, one theme and one strategy.
Advertising
Any paid form of nonpersonal presentation
and promotion of ideas
or products by an
identified sponsor
Objectives
Inform
Persuade
Remind
Reinforce

Advertising
The paid aspect of this definition reflects the fact that the
space or time for an advertising message generally must
be bought. An occasional exception to this is the public service
announcement (PSA), whose advertising space or time is
donated by the media.

Advertising
The non personal component means that advertising involves
mass media (e.g., TV, radio, magazines, newspapers) that can
transmit a message to large groups of individuals, often at the
same time. The non personal nature of advertising means that
there is generally no opportunity for immediate feedback from
the message recipient (except in direct-response advertising).
Therefore, before the message is sent, the advertiser must
consider how the audience will interpret and respond to it.

Advertising
Presentation signifies the format in which advertisement
communicate
Promotion indicates the objective of advertising
Identified sponsor refers to the identification of the brand or
advertiser that is communicating

Advertising
Advertising is the best-known and most widely discussed form
of promotion, probably because of its pervasiveness. It is also
a very important promotional tool, particularly for companies
whose products and services are targeted at mass consumer
markets. More than 200 companies each spend over $100
million a year on advertising in the United States

Advertising
Advertising can be used to create brand images and symbolic
appeals for a company or brand, a very important capability for
companies selling products and services that are difficult to
differentiate on functional attributes.

Advertising
Another Definition
According to Gardner, Advertising is the means of mass
selling that has grown up parallel with and has been made
necessary to mass production

Advertising
FEATURES OF ADVERTISING
Communication : Advertising is means of mass communication reaching
the masses. It is a non-personal communication because it is addressed to
masses.
Information : Advertising informs the buyers about the benefits they would
get when they purchase a particular product. However, the information
given should be complete and true.
Persuasion : The advertiser expects to create a favourable attitude which
will lead to favourable actions. Any advertising process attempts at
converting the prospects into customers. It is thus an indirect salesmanship
and essentially a persuasion technique.

Advertising
Profit Maximisation : True advertising does not attempt at maximising
profits by increasing the cost but by promoting the sales. This way It won't
lead to increase the price of the product. Thus, it has a higher sales
approach rather than the higher-cost approach.
Non-Personal Presentation : Salesmanship is personal selling whereas
advertising is non-personal in character. Advertising is not meant for
anyone individual but for all. There is absence of personal appeal in
advertising

Advertising
Identified Sponsor : A sponsor may be an individual or a firm who pays for
the advertisement. The name of reputed company may increase sale or
products. The product gets good market because of its identity with the
reputed corporate body.
Consumer Choice : Advertising facilitates consumer choice. It enables
consumers to purchase goods as per their budget requirement and choice.
Right choice makes consumer happy and satisfied

Advertising
Art, Science and Profession : Advertising is an art because it represents
a field of creativity. Advertising is a science because it has a body of
organised knowledge. Advertising is profession is now treated as a
profession with its professional bodies and code of conduct for members.
Element of Marking Mix : Advertising is an important element of
promotion mix. Advertising has proved to be of great utility to sell
goods and services. Large manufactures spend crores of rupees on
advertising.

Advertising
Element of Creativity : A good advertising campaign involves lot of
creativity and imagination. When the message of the advertiser matches
the expectations of consumers, such creativity makes way for successful
campaign

Advertising
OBJECTIVES OF ADVERTISING
To introduce a new product by creating interest for it among the
prospective customers.
To support personal selling programme. Advertising maybe used to open
customers' doors for salesman
To reach people inaccessible to salesman.
To enter a new market or attract a new group of customers.
To light competition in the market and to increase the sales as seen in
the fierce competition between Coke and Pepsi.
To enhance the goodwill of the enterprise by promising better quality
products and services.

Advertising
OBJECTIVES OF ADVERTISING
To improve dealer relations. Advertising supports the dealers in selling he
product. Dealers are attracted towards a product which is advertised
effectively.
To warn the public against imitation of an enterprise's products.

Advertising
GOALS OF ADVERTISING
Inform
Persuade
Remind and
Reinforce
TOOLS OF IMC
Advertising :
Advertisement is a non-personal presentation of an idea or a product
(where as personal selling or salesmanship help in personal promotional.)
Advertisement supplements personal selling to a great extent. Advertising
has, acquired great importance in the modern India characterized by tough
competition in the market and fast changes in technology, and fashion and
taste customers. It creates an active role in integrated marketing
communication mix as it creates.
Good image
Top of the mind awareness
Counterclaim the competitors
Reinforce positive attitude
TOOLS OF IMC
Publicity
Publicity is the non-personal presentation. It originates from the desk of the
editor. It aims at only informing the public about the events, person, firm
etc. There is no control on the publicity by the advertiser as it comes from
the media owner. Publicity can be favourable or unfavourable. Large firms
have separate publicity or public relation department for publicity and
cordial public relation. The secret of the publicity is to get placement in the
desired media.
Thus the use of publicity provides various advantages to the seller they are:
It is available free of cost
It provides more information than advertising as it comes from the editors
desk
Consumer believe publicity more than advertising
TOOLS OF IMC
Public relation :
A Public relations is defined as a management function which identifies,
establishes, and maintains mutually beneficial relationships between an
organization and the publics. Public relations consider multiple audiences
(consumers, employees, suppliers, vendors, etc.) and uses two-way
communication to monitor feedback and adjust both its message and the
organization's actions for maximum benefit. It is used to generate goodwill for
the organization. Public relation help the company and its public by relating
each other for mutual benefits.
The main objective of public relation is :
To remove misunderstanding, doubts, confusion, and wrong impression in the
minds of different social groups
To maintain good corporate image.
To have the public support to the future of the company.
To fulfil social responsibility
TOOLS OF IMC
Sales promotion :
Sales promotions are direct inducements that offer extra incentives to
enhance or accelerate the product's movement from producer to consumer.
Sales promotion constitutes devices like contests, coupons, free samples,
premium, and point of purchase material. Sales promotion is action
oriented. It motivates customers to buy the goods under incentive plans.
Sales promotion not only covers consumers but also dealers and
wholesalers. It acts as a connecting link between advertising and
salesmanship. Thus in a competitive marketing sales promotion act as a
effective tool to an advertiser to solve several short term hurdles in
marketing.
TOOLS OF IMC
Personal Selling :
Personal selling includes all person-to-person contact with customers with
the purpose of introducing the product to the customer, convincing him or
her of the product's value, and closing the sale. The role of personal selling
varies from organization to organization, depending on the nature and size
of the company, the industry, and the products or services it is marketing.
Many marketing executives realize that both sales and non-sales
employees act as salespeople for their organization in one way or another.
Personal selling is the most effective way to make a sale because of the
interpersonal communication between the salesperson and the prospect.
Messages can be tailored to particular situations, immediate feedback can
be processed, and message strategies can be changed to accommodate
the feedback.
TOOLS OF IMC
Packaging :
A properly designed package can induce the prospects to buy the product.
A well designed package can communicate the type and quality of the
product. Packaging plays an important role in converting the minds of the
consumers as it provides
Providing information of the product.
Protection of goods while transportation and handling
Preservation of quality of the products.
Promotion of the product.
TOOLS OF IMC
Internet :
Just as direct marketing has become a prominent player in the promotional
mix, so too has the Internet. Virtually unheard of in the 1980s, the 1990s
saw this new medium explode onto the scene, being adopted by families,
businesses and other organizations more quickly than any other medium in
history. Web sites provide a new way of transmitting information,
entertainment, and advertising, and have generated a new dimension in
marketing: electronic commerce. E-commerce is the term used to describe
the act of selling goods and services over the Internet. In other words, the
Internet has become more that a communication channel; it is a marketing
channel itself with companies such as Amazon.com, CD-Now, eBay, and
others selling goods via the Internet to individuals around the globe.
TOOLS OF IMC
Internet :
The interactivity of the Internet is perhaps its greatest asset. By
communicating with customers, prospects, and others one-on-one, firms
can build databases that help them meet specific needs of individuals, thus
building a loyal customer base.
TOOLS OF IMC
Sponsorships :
Many advertisers heavily rely on sponsorship in order to create positive
feelings toward a company. Sponsorships increase awareness of a
company or product, build loyalty with a specific target audience, help
differentiate a
product from its competitors, provide merchandising
opportunities, demonstrate commitment to a community or ethnic group, or
impact the bottom line. Like advertising, sponsorships are initiated to build
long-term associations. Organizations sometimes compare sponsorships
with advertising by using gross impressions or cost-per-thousand
measurements. However, the value of sponsorships can be very difficult to
measure. Companies considering sponsorships should consider the shortterm public relations value of sponsorships andthe long-term goals of the
organization. Sports sponsorships makeup about two-thirds of all
sponsorships.
TOOLS OF IMC
Trade shows and Exhibition :
It is one of the oldest forms of promoting the sales of products
Trade shows and exhibition provide opportunities for face-to-face contact
with prospects, enable new companies to create a viable customer base in
a short period of time, and allow small and midsize companies that may not
be visited on a regular basis by salespeople to become familiar with
suppliers and vendors. Because many trade shows generate media
attention, they have also become popular venues for introducing new
products and providing a stage for executives to gain visibility. In India, ndia
trade promotion organization (ITPO) has been set up by the government to
organized trade fairs and exhibitions.
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
No intermediary between
manufacturer & customer
Internet
Requires a database
Telemarketing
Direct marketing
Forms of Direct Marketing

Direct Mail
Mail
Direct
Catalogs
Catalogs
Direct
Direct
ResponseAds
Ads
Response
Telemarketing Direct
Direct Selling
Selling
Telemarketing
Database
Database
Management
Management
Shopping
Shopping
Channels
Channels
Internet
Internet
Sales
Sales
1-76
DIRECT
DIRECT MARKETING
MARKETING
One of the fastest-growing sectors of the world. economy is direct
marketing in which organizations communicate directly with target
customers to generate a response and/or a transaction. Traditionally, direct
marketing has not been considered an element of the promotional mix.
However, because it has become such an integral part of the IMC program
of many organizations and often involves separate objectives, budgets, and
strategies, it is viewed direct marketing as a component of the promotional
mix.
Direct marketing involves a variety of activities, including database
management, direct selling, telemarketing, and direct response ads
through direct mail, the Internet, and various broadcast and print media
DIRECT
DIRECT MARKETING
MARKETING
Dell Computer and Gateway have experienced tremendous growth in the
computer industry by selling a full line of personal computers through direct
marketing
One of the major tools of direct marketing is direct response advertising,
whereby a product is promoted through an ad that encourages the
consumer to purchase directly from the manufacturer.
The availability of credit cards and toll-free phone numbers has also
facilitated the purchase of products from direct-response ads.
More recently, the rapid growth of the Internet is fuelling the growth of
direct marketing.
The convenience of shopping through the companys website and placing
orders by mail, by phone, or online has led the tremendous growth of direct
marketing.
DIRECT
DIRECT MARKETING
MARKETING
Direct marketing plays a big role in the integrated marketing
communications programs of consumer-product companies and businessto-business marketers.
These companies spend large amounts of money each year developing
and maintaining databases containing the addresses and/or phone
numbers of present and prospective customers.
They use telemarketing to call customers directly and attempt to sell them
products and services or qualify them as sales leads.
Direct-marketing techniques are also used to distribute product samples or
target users of a competing brand.
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Marketing mix consist of four important variables of marketing, i.e. 4PsProduct, Price, Promotion and Place. Apart from the traditional 4 Ps, there
are also other variables, i.e. Packaging, Position, and Pace (speed at
which movement occurs).
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising is an element of promotion. However, it not only assists in
promoting the product, but also affects the other variables of marketing mix.
This can be explained as follows:
Advertising and Product :
A product is normally a set of physical elements, such as quality, shape,
size, colour and other features. The product may be of very high quality .At
times, the product is so designed that it requires careful handling and
operations. Buyers must be informed and educated on the various aspects
of the product. This can be effectively done through advertising. Thus,
advertising plays the role of information and education.
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Price
The price is the exchange value of the product. A marketer may bring out a
very high quality product with additional features as compared to
competitors. In such a case, price would be definitely high. But buyers may
not be willing to pay a high price would be definitely high. Here comes
advertising. Advertising can convince buyers regarding the superiority of
the brand and thus its value for money. This can be done by associating the
product with prestigious people, situations, or events. Alternatively when a
firm offers a low price products the job of advertising needs to stress the
price advantage by using hard hitting copy. It is not just enough to
convince, but it is desirable to persuade the buyer. Thus advertising plays
the role of conviction and persuasion.
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Place :
Place refers to physical distribution and the stores where the goods are
available Marketer should see to it that the goods are available at the
convenient place and that too at the right time when the buyers need it. To
facilitate effective distribution and expansion of market, advertising is of
great significance. Thus advertising do help in effective distribution and
market expansion.
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Place :
Place refers to physical distribution and the stores where the goods are
available Marketer should see to it that the goods are available at the
convenient place and that too at the right time when the buyers need it. To
facilitate effective distribution and expansion of market, advertising is of
great significance. Thus advertising do help in effective distribution and
market expansion.
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Promotion :
Promotion consists of advertising, publicity, personal selling and sales
promotion technique. Businessmen today have to face a lot of competition.
Every seller needs effective promotion to survive and succeed in this
competitive business world. Advertising can play a significant role to put
forward the claim of seller, and to counter the claims of competitor. Through
effective advertising, sellers can face competition and also help to develop
brand image and brand loyalty
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Pace :
Pace refers to the speed in marketing decisions and actions. It involves
among other things the launch of new products or brand variations at
greater speed than before. As and when new brands are launched,
advertising plays an important role of informing, educating and persuading
the customers to buy the product
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Packaging :
The main purpose of packaging is protection of the product during transit,
and preservation of quality and quantity. Nowadays, marketers take lot of
efforts to develop and design attractive packages as they carry advertising
value. A creatively design package attract the attention of the customers. It
also carries an assurance of quality and creates confidence in the minds of
customers to buy the product.
ROLE
ROLE OF
OF ADVERTISING
ADVERTISING IN
IN MARKETING
MARKETING MIX
MIX
Advertising and Positioning :
Product positioning aims at creating and maintaining a distinct image of the
brands in the minds of the customers. Through advertising the marketer
can convey the positioning of the brand and accordingly can influence the
buying decision of the target audience.
Advertising
Advertising types
Brand-building
Public service
Selectivedemand
Tactical
Corporate
B2B
Advocacy
Trade
-Direct response
National
Retail
Primary-demand
Advertising Classifications
National
National
Retail
Retail // Local
Local
Consumers
Primary
Primary // Selective
Selective Demand
Demand
Business-to-Business
Business-to-Business
Professional
Professional
Trade
Trade
Organizations
1-91
Classifications
Classifications of
of advertising
advertising
ADVERTISING TO CONSUMER MARKETS
National Advertising
Advertising done by large companies on a nationwide basis or in most
regions of the country. Most of the ads for well-known companies and
brands that are seen on prime-time TV or in other major national or
regional media are examples of national advertising. The goals of national
advertisers are to inform or remind consumers of the company or brand
and
its features, benefits, advantages, or uses and to create or reinforce its
image so that consumers will be predisposed to purchase it.
Classifications
Classifications of
of advertising
advertising
Retail/Local Advertising
Advertising done by retailers or local merchants to encourage consumers
to
shop at a specific store, use a local service, or patronize a particular
establishment. Retail or local advertising tends to emphasize specific
patronage motives such as price, hours of operation, service, atmosphere,
image, or merchandise assortment. Retailers are concerned with building
store traffic, so their promotions often take the form of direct-action
advertising designed to produce immediate store traffic and sales
Classifications
Classifications of
of advertising
advertising
Primary- versus Selective-Demand Advertising
Primary-demand advertising is designed to stimulate demand for the
general product class or entire industry. Selective-demand advertising
focuses on creating demand for a specific companys brands. Most
advertising for products and services is concerned with stimulating selective
demand and emphasizes reasons for purchasing a particular brand. An
advertiser might concentrate on stimulating primary demand when, for
example, its brand dominates a market and will benefit the most from
overall market growth. Primary-demand advertising is often used as part of
a promotional strategy to help a new product gain market acceptance, since
the challenge is to sell customers on the product concept as much as to sell
a particular brand. Industry trade associations also try to stimulate primary
demand for their members products, among them cotton, milk, orange
juice, pork, and beef.
.
Classifications
Classifications of
of advertising
advertising
ADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS
Business-to-Business Advertising
Advertising targeted at individuals who buy or influence the purchase of
industrial goods or services for their companies. Industrial goods are
products that either become a physical part of another product (raw
material or component parts), are used in manufacturing other goods
(machinery), or are used to help a company conduct its business (e.g.,
office supplies, computers). Business services such as insurance, travel
services, and health care are also included in this category.
.
Classifications
Classifications of
of advertising
advertising
Professional Advertising
Advertising targeted to professionals such as doctors, lawyers, dentists,
engineers, or professors to encourage them to use a companys product in
their business operations. It might also be used to encourage professionals
to recommend or specify the use of a companys product by end-users.
Classifications
Classifications of
of advertising
advertising
Trade Advertising
Advertising targeted to marketing channel members such as wholesalers,
distributors, and retailers. The goal is to encourage channel members to
stock, promote, and resell the manufacturers branded products to their
customers.
TELEVISION
TELEVISION AS
AS AN
AN ADVERTISING
ADVERTISING MEDIA
MEDIA
Television is often called "king" of the advertising media, since a majority of
public spends more hours watching TV per day than any other medium. It
combines the use of sight, color, sound and motion...and it works.
TV has proven its convincing power in influencing human behaviour time
and time again. But it's also the "king" of advertising costs. The Internet
may grab all of the attention these days, but TV is still the media king.
Television advertising offers the benefit of reaching large numbers in a
single exposure. Yet because it is a mass medium capable of being seen
by nearly anyone, television lacks the ability to deliver an advertisement to
highly targeted customers compared to other media outlets.
Television networks are attempting to improve their targeting efforts. In
particular, networks operating in the pay-to-access arena, such as those
with channels on cable and satellite television, are introducing more
narrowly themed programming (i.e., TV shows geared to specific interest
groups) designed to appeal to selective audiences
TELEVISION
TELEVISION AS
AS AN
AN ADVERTISING
ADVERTISING MEDIA
MEDIA
However, television remains an option that is best for products that targeted
to a broad market.TV media companies have it somewhat easier than
competitors that have been relying on print newspaper and magazines or
radio for their revenue.
The Indian Entertainment &Media as an industry is estimated to grow from
INR 646.0 billion in the year 2010, at a CAGR of 13.2% for the next five
years to reach INR 1198.9 billion in the year 2015.
The television industry is anticipated to continue to be the major contributor
to the industry revenue pie taken as a whole With a cumulative growth of
14.5% over next five years the industry is estimated to reach INR 602.5
billion by 2015 from .INR 306.5 billion in 2010.
In the year 2015 the Television advertising is projected to command a
share of 42.5% which is presently having a share of 41% of the advertising
industry pie.
Creating
Creating aa desire
desire to
to purchase
purchase through
through Television
Television Ad
Ad
campaigns
campaigns by
by being
being creative
creative
When you advertise on TV, your commercial is not only competing with
other commercials, it's also competing with the other elements in the
viewer's environment as well. The viewer may choose to get a snack during
the commercial break, go to the bathroom or have a conversation about
what they just saw on the show they were viewing. Even if your commercial
is being aired, viewers may never see it unless it is creative enough to
capture their attention. That's why it's so important to consider the kind of
commercial you are going to create...and how you want your audience to
be affected. Spending money on a good commercial in the beginning will
pay dividends in the end.
Creating
Creating aa desire
desire to
to purchase
purchase through
through Television
Television Ad
Ad
campaigns
campaigns by
by being
being creative
creative
The process of making a decision in advertising consists of 5 steps: setting
goals, administrating the budget, conceiving the message and assessing
the advertising efficiency. Advertising users have to define clear objectives,
establishing whether the role of advertising is to inform, to persuade or to
refresh the customers' memory. Advertising budget is usually determined
according to the company's expenses, based on a percentage of sales or
depending on the objectives that the company aims to achieve.
Creating
Creating aa desire
desire to
to purchase
purchase through
through Television
Television Ad
Ad
campaigns
campaigns by
by being
being creative
creative
TV commercial of Munch Rollz: "Caramel se bhara crunch ka fun dose".
A girl enters a confectionery shop. She is crying with animated tears
pouring out like a fountain from her eyes. She puts a coin on the table and
suddenly a Munch Rollz pops out of the container and says, "Aansun
poncho, main aa gaya". The girl cries even louder seeing this character
and
her tears also flow heavily. The animated Munch Rollz character starts
dancing and sings, "Sadness ko dur bhagane, masti ko wapis lane". The
girl gets awe-struck to see the Rollz come directly towards her and she
opens her mouth wide enough to take a bite. The girl's animated tears stop
and she smiles soon after taking the first bite.
Creating
Creating aa desire
desire to
to purchase
purchase through
through Television
Television Ad
Ad
campaigns
campaigns by
by being
being creative
creative
As the world of advertising becomes more and more competitive,
advertising becomes more and more sophisticated. Yet the basic principles
behind advertising copy remain that it must attract attention and persuade
someone to take action. Every day we're bombarded with many advertising
commercials aiming to grab our attention. The primary objective of
advertising campaigns is not to sell; it's to call our attention. While both
online and print media offer some of the same advantages, TV advertising
still offers the best way to tell your story in an engaging, consumer-friendly
format. TV ads give you an opportunity to be creative and to give your
business a real sense of personality. Television as a media of
communicating your brand can create a desire to buy a product by using
appropriate appeal with sight, sound, and motion, all of which can combine
to lend your business a big dose of instant credibility. TV makes it easier to
accomplish that quickly, allowing your business to convert more potential
buyers into paying customers.
PERSUASIVE
PERSUASIVE COMMUNICATION
COMMUNICATION PROCESS
PROCESS
Communication with the people takes place almost constantly.
Persuasive communication is a specific type of communication in
promotion.
If a particular ad is intended to achieve an intermediate objective
such as to build awareness, deliver information or remind the
target audience the ultimate objective of promotion strategy is to
persuade the audience towards some desired goal of the
marketers.
Persuasion through advertising or PR/personal selling or sales
promotion take less time and a shorter route.
Marketing objectives are based on company objectives
Persuasive communication is based on marketing objectives
PERSUASIVE
PERSUASIVE COMMUNICATION
COMMUNICATION PROCESS
PROCESS
SOCIAL
SOCIAL ASPECTS
ASPECTS OF
OF ADVERTISING
ADVERTISING
Culture is total of tangible and intangible concepts that define a
way of life culture includes art literature, music (tangible) and
knowledge, morals, customs, laws etc. (intangible). It covers the
attitude and values of the whole society which are passed from
one generation to another. Habits, customs, attitude, beliefs and
values are thus, a part of culture.
Advertising is a product of culture. Advertising is an art of
persuasion, but still people buy only those goods and services
which they needs. What they purchase is the outcome of the
cultural values. The consumer's behaviour is influenced by his
family status, family life cycle, social relations, opinion leaders,
reference groups etc.
SOCIAL
SOCIAL ASPECTS
ASPECTS OF
OF ADVERTISING
ADVERTISING
The value system is ever changing with the passage of time. With
these changes on value system, the role of advertising keeps
pace with the changing times. Once a particular set of values
have been accepted by a society, the advertising as a social and
business process tries to bring all those goods and services which
are made to respect the value system.
Critics of advertising points out that mass media supported by
advertising have encouraged what is popular rather than what is
good and in doing so have encouraged materialistic values rather
than cultural ones. They cite the examples of films, serials that
are shown on TV and on the big screen, which depicts scenes of
rape, murders, and other acts of violence and crime.
SOCIAL
SOCIAL ASPECTS
ASPECTS OF
OF ADVERTISING
ADVERTISING
However, there are various social, religious and educational
institutions to guide the people of a particular society in their
behaviour.
On the other hand, supporters claim that advertising do upgrade
the cultural values for the betterment of the society. They cite the
instances of advertising campaigns on family planning, drug
abuse, noise pollution and other such public awareness
advertising.
Thus it can be concluded that advertising upholds and upgrades
the cultural values in several respect but in some cases
advertising may be directly or indirectly responsible to the evil
craze of materialism.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
Ethics is a set of moral principles, norms or values. It is a branch of social

science. It deals with good and bad with reference to a particular culture. It
refers to the moral duty and obligation and advertiser has towards the
society. Moral principles are the rules or standards of what is right or
wrong .
Ethics in Advertising and Promotion

Ethics:
Ethics: Moral
Moral principles
principles and
and values
values that
that govern
govern the
the
actions
actions and
and decisions
decisions
of
of an
an individual
individual or
or group
group
Not
Not all
all issues
issues
can
can be
be
regulated
regulated
AA marketing
marketing or
or
promotion
promotion action
action
may
may be
be legal
legal but
but
not
not ethical
ethical
Marketers
Marketers must
must
decide
decide the
the
appropriate-ness
appropriate-ness
of
of their
their actions
actions
21-110
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
Every advertising tries to persuade the people. In the modern competitive
market each advertiser wants to win over his rivals by effective advertising.
In this process, there are chances of hiding truth and facts in order to
succeed in increased sales and profit. But the advertiser has social and
moral duty or obligation towards consumers.
An advertiser should maintain a high degree of ethical stands i.e. he must
inform the facts or truth to consumers. An advertisement with false claims
may succeed in short run but it will definitely give a bad name to the
product in long run. Because one can fool some people all the time, and all
the people for sometime, but one cannot fool all the people all the time.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
If unethical practices are continued they will destroy the image of the
business as a whole and advertising itself will become less effective. Some
of the moral codes developed in advertising are :
It should avoid attacking competitors unfairly.
It shall be free from offensive to public decency.
It shall make clearest claims regarding price reduction guarantees etc.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
ETHICS IN ADVERTISING
Ethics in advertising means that the advertisers should do only good
advertising, meaning thereby honest advertising. It means that only true
facts, no exaggeration and no lies, about the product, service, idea or
institution should be stated, in clear Tenos, in the ad.
Ethics in advertising also means that only good products services and
ideas should be advertised and that too to the right consumers. Advertising
for products rum, gin, tobacco, pan-parag and other harmful products like
cigarettes, beer, whisky, should be avoided.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
Ads showing testimonials should be restricted to competent persons,
who must express honest views and choices.
Ads in poor taste and offensive to public decency with double meaning
tone must be avoided.
Ads should avoid attacking unfairly competitors. In sum, advertising
should be honest, objective, informative and persuasive in contents.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
Ethical issues must be considered in integrated marketing
communications decisions. Advertising and promotion are areas where a
lapse in ethical standards or judgment can result in actions that are highly
visible and often very damaging to a company.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
Comparative advertising
Misleading advertising
Misleading advertising means any advertising which in any way deceives or
is likely to deceive consumers and is likely to affect their economic
behaviour or injure a competitor. Thus false or deceptive comparative
advertising is also a type of misleading advertising. Advertising can mislead
consumers regarding product price, quality, features, country of origin,
sponsorships, sales promotion offers, comparison with other products etc.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
Surrogate advertising
Surrogate advertising means substituting the brand image and advertising
of one product to promote another product of the same brand usually one
that is forbidden from advertisement.
It is commonly seen for liquor and tobacco products whose advertising is
banned in many countries.
For example ITC has come up with Gold Flake expression greeting cards
and Wills has registered its sportswear as a new business entity.
ETHICS
ETHICS IN
IN ADVERTISING
ADVERTISING
STEREO TYPING
Surrogate advertising
Surrogate advertising means substituting the brand image and advertising
of one product to promote another product of the same brand usually one
that is forbidden from advertisement.
It is commonly seen for liquor and tobacco products whose advertising is
banned in many countries.
For example ITC has come up with Gold Flake expression greeting cards
and Wills has registered its sportswear as a new business entity.
Advertising and Stereotyping

Portrayal of women to
reflect their changing role
in society
Gender
stereotyping
Sexual
orientation
Criticisms of
Advertising
With Regard to
Stereotyping
Portrayal of
women as
sex objects
Ethnic
stereotyping/
representation
21-119
Sales promotion
Changes the price-value relationship of a product
Increases
value
Increases
value
OR
OR
Decreases
price
AND
Decreases
price
Sales promotion tools
Balancing sales promotion:

How much is too much?
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
Publicity/PR
Internet as a
communication tool
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
Events,
Trade shows
POP
Novel
Media
Sponsorships
Advertising
specialties
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

(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
Pepsodent
commercials
School contact
programmes
Interactive
website
Encourage kids
to brush teeth
at night
12 lakh kids signed the pledge,

campaign won EMVIES06
Chorus by
dabbawallas
Contest to
write lyrics
Why IMC?
Kingfisher integrates
the good times experience
Cadbury manages a crisis with IMC
UNCONVENTIONAL
UNCONVENTIONAL MEDIA
MEDIA
UNCONVENTIONAL MEDIA
Packaging
Point of purchase
Advertising specialities ( offering gift items to promote company
name like calendar, table-clock, diaries, t-shirts etc. )
Sponsorship
Event marketing
Trade shows and exhibits
Customer service

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Advertising & Promotions

Integrated communication for Incredible

The growth of advertising & promotions

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Integrated marketing communication

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Integrated marketing communication

Integrated marketing communication

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Integrated marketing communication

Integrated marketing communication

Integrated marketing communication

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Integrated marketing communication

Integrated marketing communication

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Integrated marketing communication

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Ethics is a set of moral principles, norms or values. It is a branch of social

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Balancing sales promotion:

Axe creates a sensation!

Integrated marketing communication

Pepsodent Bhoot Police