Advertising & Promotions

An IMC Perspective

An Introduction to Integrated Marketing Communications

Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

Integrated communication for Incredible India

India, one of the Asias most popular tourism destinations lured foreign tourists through its hills, rivers, plateaus, plains, beaches, deltas and deserts, many luxurious hotels

and resorts, picturesque nature sites, and the architectural wealth. India delivered
novelty in various categories of tourism like history tourism, adventure tourism, medical tourism like Ayurveda and other forms of Indian medications, spiritual tourism, business travels, holiday seekers, beach tourism, etc. The liberalisation of Indian economy in the 1990s attracted investment in the tourism sector and infrastructure development fostered the international tourist flow to India. But, between 2001 and 2002, the Indian tourism sector witnessed fall in foreign tourist arrivals due to the 9/11 incident in the US, Afghanistan war, and India-Pak border tension. To boost the tourists flow, Ministry of Tourism (MoT), launched Incredible India in 2002 a campaign aimed at building brand image of India in global tourism industry and to increase foreign exchange earnings. The tourism industry witnessed positive results of this campaign and now enjoying the fruits of Incredible India campaign
Prof. Vikram Parekh on IMC

Integrated communication for Incredible India

Prof. Vikram Parekh on IMC

Integrated communication for Incredible India

Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

Marketing communication

Purpose: Seek a

cognitive, affective or behavioural response from the target audience

Marketing

Unconventional tools

Advertising

Interactive tools

Sales Promotion

Direct Marketing

Public Relations

communication mix
Prof. Vikram Parekh on IMC

Integrated marketing communication

Advertising

Interactive tools

Sales Promotion

IMC
Unconventional tools Direct Marketing

Public Relations/ Publicity

Prof. Vikram Parekh on IMC

The growth of advertising & promotions (India)

Year

Advertising expenditure (Rs. Crores) 21,000 17,690

% Growth over last year 20.0 22.0

2008 2007

2006
2005 2004 2003

14,505
11,915 10,354 9,329

21.7
15.1 10.9

Prof. Vikram Parekh on IMC

The growth of advertising & promotions (India)

Prof. Vikram Parekh on IMC

The growth of advertising & promotions (Worldwide)

Prof. Vikram Parekh on IMC

Advertising
Any paid form of non-

personal presentation and promotion of ideas or products by an identified sponsor

Objectives Inform Persuade Remind Reinforce
Prof. Vikram Parekh on IMC

Advertising
Strengths
Informs, persuades, reminds, reinforces

Weaknesses

Expensive

Builds brand equity

Cluttered

Can reach large audiences

Prof. Vikram Parekh on IMC

Advertising types

Brand-building
Cadbury kya swaad hai zinddagi ka

Public service
Cancer Patients Aid Association

Selective Demand
Hair Colour Brand promoting its product differentiation

Tactical
-Direct response
Reader Digest discount offer

Corporate
Amul, HCL

B2B
Industrial Product

National
Done in national channel like DD, Sony, ZEE & Star

Advocacy
Hutch bina izazat photo na kheechein

Trade
Targeted towards marketing Channel members like dealers, retailers, etc

Retail
Done by retailers at its venue

Primary-demand
Livon, Milk, Egg

Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

Sales promotion

Changes the price-value relationship of a product

Increases value OR OR Decreases price

Increases value AND Decreases price

Prof. Vikram Parekh on IMC

Sales promotion tools

Rebates Sampling Contests 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

Prof. Vikram Parekh on IMC

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 Gets trade support Less expensive than advertising
Prof. Vikram Parekh on IMC

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

Direct mail

Direct response TV/radio

Mail-order catalogues Internet Telemarketing

manufacturer & customer

Requires a database

Prof. Vikram Parekh on IMC

Direct marketing

Strengths
Highly targeted
Measurable Personalization & customization possible Two-way communication

Weaknesses
Expensive
Not suitable for large audiences

Relationship building

Prof. Vikram Parekh on IMC

Publicity
Non-personal

communication by thirdparty sources regarding an organizations products

Tools Press releases Press conferences Special events Opinion polls Interviews Contests Weblog writeups

Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

The publics of PR

Community Media PR Government Shareholders

Prof. Vikram Parekh on IMC

Customers

Employees

Publicity/PR

Strengths
Builds goodwill Low cost Reaches many audiences

Weaknesses
Little control Hidden costs Difficult to measure

No direct impact on sales

Prof. Vikram Parekh on IMC

Internet as a communication tool

Strengths
Direct, interactive Low in cost Personalized Targeted Up-to-date Less intrusive
Prof. Vikram Parekh on IMC

Weaknesses
Smaller audiences Difficult for non-savvy audiences

Internet tools
Websites
Emails Blogs Discussion forums Online games
Prof. Vikram Parekh on IMC

Axe creates a sensation!

Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

Unconventional media

Packaging Customer service Events, Trade shows Novel Media POP

Advertising specialties

Sponsorships
Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

Integrated marketing communication (IMC)

Various promotional tools provide consistent

messages to target audiences for clarity, consistency & impact

One voice, one message, one strategy

Prof. Vikram Parekh on IMC

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 EMVIES06

Prof. Vikram Parekh on IMC

Why IMC?
Changing compensation structure of agencies Tighter control over communication

Decreasing impact of advtg

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

Prof. Vikram Parekh on IMC

Kingfisher integrates the good times experience

Prof. Vikram Parekh on IMC

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

Prof. Vikram Parekh on IMC

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
Prof. Vikram Parekh on IMC

The IMC planning process

Monitor/evaluate perfomance

The IMC Plan

Situational analysis Problem/opportunity determination Communication objectives Budget determination IMC strategies Implement & monitor activities

Prof. Vikram Parekh on IMC

Evaluate the Planning process

Cadbury manages a crisis with IMC

Prof. Vikram Parekh on IMC