Advertising & PromotionsAn IMC PerspectiveKruti Shah Alan DSouzaChapter 1An Introduction to Integrated Marketing Communications

Chapter takeawaysUnderstand marketing and marketing communicationLearn about the various promotional toolsUnderstand IMC, its evolution and importanceAppreciate interrelation and integration of various promotional toolsComprehend the IMC model and programme

Integrated communication for Incredible India

Understanding marketingMarketing is a vast field that encompasses many activities:A hawker pricing his wares is marketingA hotel manager taking customer feed back is marketingA barber placing his big hoarding announcing his services is marketingA movie theatre distributing cinema tickets through internet is also marketing

Understanding marketingStreet hawkers selling bags and sunglasses in centralRome, Italy

Understanding marketingMarketing is not simply selling and advertisingThese 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

Understanding marketingIn 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.

Understanding marketingIn essence marketing is customer centered and products are often developed to meet the needs of groups of customers , or at times, specific customersMarketing includes many tasks right from identifying the customer needs and wants and fulfilling them.This includes marketing research,

Understanding marketingThis includesMarketing researchNew product developmentDistribution managementPricingPromotionAnalysis of competition

Understanding marketingThe 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.

Understanding marketingMarketing is not limited to the exchange of tangible goods, but can be for various types of entitiesgoods,services,people,places,events,properties,organisations,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 communicationPurpose: 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 year200821,00020.0200717,69022.0200614,50521.7200511,91515.1200410,35410.92003 9,329

The growth of advertising & promotions (Worldwide)

Integrated marketing communicationFor 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.

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

Integrated marketing communicationMany 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.

Integrated marketing communicationThe Evolution of IMCDuring 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.

Integrated marketing communicationThe Evolution of IMCAs 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.

Integrated marketing communicationThe Evolution of IMCMany 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 one-stop shopping for all their clients promotional needs. Some agencies became involved in these non-advertising areas to gain control over their clients promotional programs and budgets and struggled to offer any real value beyond creating advertising..

Integrated marketing communicationThe Evolution of IMCHowever, the advertising industry soon recognizedthat IMC was more than just a fad. Terms such as new advertising, orchestration, and seamless communication were used to describe the concept of integration

Integrated marketing communicationDEFINITION OF IMCA 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.

Integrated marketing communicationThe 4As definition focuses on the process of using all forms of promotion to achieve maximum communication impactHowever, 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.

Integrated marketing communicationSchultz 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 strategythat recognizes how all of a firms marketing activities, not just promotion, communicate with its customers.

Integrated marketing communicationConsumers 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.

Integrated marketing communicationThe 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.

Integrated marketing communicationThe reasons for adopting IMC approach by marketersMany 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.

Integrated marketing communicationThe reasons for adopting IMC approach by marketersThe 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.

Integrated marketing communicationThe reasons for adopting IMC approach by marketersThere 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.

Integrated marketing communicationThe reasons for adopting IMC approach by marketersThe 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 todemographics, 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

Integrated marketing communicationThe reasons for adopting IMC approach by marketersEven 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

Integrated marketing communicationThe reasons for adopting IMC approach by marketersIn 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.

Integrated marketing communicationThe 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.

Integrated marketing communicationThe major reasons for growing importance of IMC approach Major characteristics of this marketing revolution include:

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.

Integrated marketing communicationThe major reasons for growing importance of IMC approach Major characteristics of this marketing revolution include: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.

Integrated marketing communicationThe major reasons for growing importance of IMC approach Major characteristics of this marketing revolution include: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.

Integrated marketing communicationThe major reasons for growing importance of IMC approach Major characteristics of this marketing revolution include: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.

Integrated marketing communicationThe major reasons for growing importance of IMC approach Major characteristics of this marketing revolution include: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

Integrated marketing communicationThe major reasons for growing importance of 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

Integrated marketing communicationThe major reasons for growing importance of 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

Integrated marketing communicationThe major reasons for growing importance of IMC approach Brand identity and equityBuilding 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

Integrated marketing communicationThe major reasons for growing importance of IMC approach Brand identity and equityBrand 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.

Integrated marketing communicationThe major reasons for growing importance of IMC approach Brand identity and equityThese 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

Integrated marketing communicationThe major reasons for growing importance of IMC approach Brand identity and equityA 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

Integrated marketing communicationThe concept of Integrated marketing communication IMC is a management concept that brings together all tools of marketing communication to send consisting messages to target audiencesA target audience is the group of consumers whom marketing communication messages are directed. A company cannot succeed when it targets everybody in its marketing programThere 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.

Integrated marketing communicationThe concept of Integrated marketing cCommunicationInstead of dividing communications into several overlapping areas, IMC unifies each communication element to deliver consistent messages with one voice, one theme and one strategy.

Integrated marketing communication

Advertising Any paid form of non-personal presentation and promotion of ideas or products by an identified sponsor

ObjectivesInformPersuadeRemindReinforce

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

Integrated marketing communicationAdvertisingThe 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.

Integrated marketing communicationAdvertisingPresentation signifies the format in which advertisement communicatePromotion indicates the objective of advertisingIdentified sponsor refers to the identification of the brand or advertiser that is communicating

Integrated marketing communicationAdvertisingAdvertising 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

Integrated marketing communicationAdvertisingAdvertising 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.

Integrated marketing communicationAdvertisingAnother DefinitionAccording to Gardner, Advertising is the means of mass selling that has grown up parallel with and has been made necessary to mass production

Integrated marketing communicationAdvertisingFEATURES OF ADVERTISINGCommunication : 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.

Integrated marketing communicationAdvertisingFEATURES OF ADVERTISINGProfit 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

Integrated marketing communicationAdvertisingFEATURES OF ADVERTISINGIdentified 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

Integrated marketing communicationAdvertisingFEATURES OF ADVERTISINGArt, 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.

Integrated marketing communicationAdvertisingFEATURES OF ADVERTISINGElement 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

Integrated marketing communicationAdvertisingOBJECTIVES OF ADVERTISINGTo 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.

Integrated marketing communicationAdvertisingOBJECTIVES OF ADVERTISINGTo 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.

Integrated marketing communicationAdvertisingGOALS OF ADVERTISINGInformPersuadeRemind and Reinforce

TOOLS OF IMCAdvertising :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 imageTop of the mind awarenessCounterclaim the competitorsReinforce positive attitude

TOOLS OF IMCPublicityPublicity 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 costIt provides more information than advertising as it comes from the editors deskConsumer believe publicity more than advertising

TOOLS OF IMCPublic 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 groupsTo maintain good corporate image.To have the public support to the future of the company.To fulfil social responsibility

TOOLS OF IMCSales 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 IMCPersonal 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 IMCPackaging :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 providesProviding information of the product.Protection of goods while transportation and handlingPreservation of quality of the products.Promotion of the product.

TOOLS OF IMCInternet :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, theInternet 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 IMCInternet :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 IMCSponsorships :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 short-term public relations value of sponsorships andthe long-term goals of the organization. Sports sponsorships makeup about two-thirds of all sponsorships.

TOOLS OF IMCTrade 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 marketingOne-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 databaseDirect mailDirect response TV/radioMail-order cataloguesInternetTelemarketingTools

Direct marketing

Forms of Direct MarketingDatabase ManagementTelemarketingDirect MailShopping ChannelsCatalogsInternet SalesDirect SellingDirect Response Ads1-*

DIRECT 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 MARKETING

Dell Computer and Gateway have experienced tremendous growth in the computer industry by selling a full line of personal computers through direct marketingOne 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 MARKETING

Direct marketing plays a big role in the integrated marketing communications programs of consumer-product companies and business-to-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 themproducts 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 OF ADVERTISING IN MARKETING MIXMarketing mix consist of four important variables of marketing, i.e. 4Ps-Product, 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 OF ADVERTISING IN MARKETING MIXAdvertising 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 OF ADVERTISING IN MARKETING MIXAdvertising 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 OF ADVERTISING IN MARKETING 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 OF ADVERTISING IN MARKETING 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 OF ADVERTISING IN MARKETING 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 OF ADVERTISING IN MARKETING 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 OF ADVERTISING IN MARKETING 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 OF ADVERTISING IN MARKETING 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

Advertising Classifications1-*

Classifications of advertisingADVERTISING TO CONSUMER MARKETSNational AdvertisingAdvertising 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 nationaladvertisers are to inform or remind consumers of the company or brand andits features, benefits, advantages, or uses and to create or reinforce its image so that consumers will be predisposed to purchase it.

Classifications of advertisingADVERTISING TO CONSUMER MARKETSRetail/Local AdvertisingAdvertising done by retailers or local merchants to encourage consumers toshop 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 of advertisingADVERTISING TO CONSUMER MARKETSPrimary- versus Selective-Demand AdvertisingPrimary-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 of advertisingADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS

Business-to-Business AdvertisingAdvertising 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 of advertisingADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS

Professional AdvertisingAdvertising targeted to professionals such as doctors, lawyers, dentists,engineers, or professors to encourage them to use a companys product intheir business operations. It might also be used to encourage professionalsto recommend or specify the use of a companys product by end-users.

Classifications of advertisingADVERTISING TO BUSINESS AND PROFESSIONAL MARKETS

Trade AdvertisingAdvertising 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 AS AN ADVERTISING MEDIATelevision 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 AS AN ADVERTISING MEDIAHowever, 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 a desire to purchase through Television Ad campaigns by being creativeWhen 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 a desire to purchase through Television Ad campaigns by being creativeThe 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 determinedaccording to the company's expenses, based on a percentage of sales or depending on the objectives that the company aims to achieve.

Creating a desire to purchase through Television Ad campaigns by being creativeTV 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 andher 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 a desire to purchase through Television Ad campaigns by being creativeAs 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 COMMUNICATION PROCESSCommunication 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 objectivesPersuasive communication is based on marketing objectives

PERSUASIVE COMMUNICATION PROCESS

SOCIAL ASPECTS OF ADVERTISINGCulture 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 ASPECTS OF ADVERTISINGThe 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 ASPECTS OF ADVERTISINGHowever, 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 IN 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 PromotionEthics: Moral principles and values that govern the actions and decisions of an individual or group21-*

ETHICS IN ADVERTISINGEvery 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 IN ADVERTISINGIf 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 IN ADVERTISINGETHICS 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 IN ADVERTISINGETHICS IN 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 IN ADVERTISINGETHICS IN 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 IN ADVERTISINGETHICS IN ADVERTISINGComparative advertisingMisleading advertisingMisleading 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 IN ADVERTISINGETHICS IN ADVERTISINGSurrogate advertisingSurrogate 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 IN ADVERTISINGSTEREO TYPINGSurrogate advertisingSurrogate 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 StereotypingCriticisms of AdvertisingWith Regard to Stereotyping21-*

Sales promotionIncreases valueDecreases priceIncreases valueDecreases priceORORANDChanges the price-value relationship of a product

Sales promotion tools

Balancing sales promotion: How much is too much?

Publicity Non-personal communication by third-party sources regarding an organizations productsTools Press releasesPress conferencesSpecial eventsOpinion pollsInterviewsContests Weblog writeups

Public relationsPositively influencing public opinion to build goodwill, and earn appreciation and acceptanceMay result in publicity

ToolsPublicity toolsCommunity affairsEvents and conventionsCorporate advertisingLobbying

The publics of PR

Publicity/PR

Internet as a communication tool

Internet tools

Axe creates a sensation!

Personal sellingPersonal presentation by a representative of an organization with the purpose of influencing consumer buying decision, making a sale, or building long-term relationshipsStrengthsTargeted, flexible, interactive, measurable, offers immediate feedback, ideal for high-value & high-deliberation products & niche audiences

WeaknessesExpensive, not suitable for large audiences

Unconventional mediaNovel MediaCustomerservicePackagingEvents,Trade showsSponsorshipsPOPAdvertising specialties

Quick Q!Which of the following tools of communication is likely to create the highest credibility among consumers?AdvertisingPublicitySales promotionPackagingPersonal 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

Why IMC?

Kingfisher integrates the good times experience

Cadbury manages a crisis with IMC

UNCONVENTIONAL MEDIAUNCONVENTIONAL MEDIAPackagingPoint of purchaseAdvertising specialities ( offering gift items to promote company name like calendar, table-clock, diaries, t-shirts etc. )SponsorshipEvent marketingTrade shows and exhibitsCustomer service

***Reference to text: This slide refers to the In Perspective feature on the Incredible India campaign discussed on pages 3-7.

*********Reference to text: This slide refers to section 1.1 that introduces students to marketing, and its four tools or mix.*Reference to text: This slide refers to section 1.2 on page 9 that introduces students to marketing communication, and to section 1.2.1 on pages 12 and 13 that discuss the various tools of the communication mix. *Reference to text: This slide refers to the write up on the growth of advertising and promotions on pages 9-12.*Reference to text: This slide refers to the write up on the growth of advertising and promotions on pages 9-12.*********************************Reference to text: This slide refers to the conceptual understanding of IMC as discussed in section 1.3 on page 38.*Reference to text: This slide refers to the understanding of advertising as discussed in section 1.2.1.1.*************************Reference to text: This slide refers to section 1.2.1.3 that introduces direct marketing as a communication tool, and in turn, the various tools of direct marketing.*Reference to text: This slide identifies the strengths and weaknesses of direct marketing as pointed out in table 1.6 on page 37.**************Reference to text: This slide identifies the strengths and weaknesses of advertising as pointed out in table 1.6 on page 37.*Reference to text: This slide refers to the understanding of various types of advertising as discussed in section 1.2.1.1 on pages 19-24.

******************************Reference to text: This slide refers to section 1.2.1.2 that explains the concept of sales promotion as a marketing communication tool.*Reference to text: This slide refers to section 1.2.1.2 that mentions the various tools of consumer and trade sales promotion.*Reference to text: This slide identifies the strengths and weaknesses of sales promotion as pointed out in table 1.6 on page 37.*Reference to text: This slide refers to section 1.2.1.4 that introduces publicity as a communication tool, and the various tools of publicity.*Reference to text: This slide refers to section 1.2.1.4 that introduces public relations as a communication tool, and the various tools of PR.*Reference to text: This slide refers to page 26 of section 1.2.1.4 that points to the various audiences of PR.*Reference to text: This slide identifies the strengths and weaknesses of publicity and PR as pointed out in table 1.6 on page 37.*Reference to text: This slide identifies the strengths and weaknesses of Internet as a communication tool as pointed out in table 1.6 on page 37.*Reference to text: This slide refers to the various tools of Internet communication as pointed out in section 1.2.1.5.*Reference to text: This slide refers to the Management Focus feature on Axes Internet campaign, as discussed on pages 33 and 34.*Reference to text: This slide introduces personal selling as a communication tool, as discussed in section 1.2.1.6, and identifies the strengths and weaknesses of personal selling as pointed out in table 1.6 on page 37.*Reference to text: This slide refers to section 1.2.1.7 that discusses some of the prominent media that defy traditional categorisation.*Reference to text: This slide tests students understanding of the different marketing communication tools discussed in the earlier slides. The correct answer is b. Publicity. As publicity is often incidentally created, not directly sponsored by the marketing organisation, and mostly created by neutral third parties, consumers are likely to have more faith in its message.*Reference to text: This slide refers to the conceptual understanding of IMC as discussed in section 1.3 on page 38.*Reference to text: This slide refers to the Case in Point of Pepsodent Bhoot Police as discussed on page 39.*Reference to text: This slide refers to section 1.3.1 on The Case for IMC.*Reference to text: This slide refers to the Management Focus feature on Kingfisher airlines, as discussed on pages 43 and 44.*Reference to text: This slide refers to the end-of-chapter case on Cadburys Dairy Milk.*