Advertising & Integrated
                  Marketing Communication



August 30, 2012                                1
Learning Objectives of the Course
 On completing the course it is expected that you will be
  able to
  Evaluate the need for Marketing Communication for a
       Brand
  To Conduct relevant research & formulate the
       Communication Objectives for a Brand
  To successfully liaison between the Advertising Agency &
       the Client Organization

August 30, 2012                                               2
Learning Objectives …..contd

 To develop effective Creative Strategy for Marketing
 Communication

 To develop effective Media Planning for IMC campaign


 To evaluate the Communication & Sales Effectiveness of
 Marketing communication


August 30, 2012                                            3
A Recap of Marketing basics




August 30, 2012                         4
Marketing
  “The process of
    planning and executing                             Product
    the conception, pricing,
    promotion, and
    distribution of ideas,
    goods and services to
    create exchanges that                            Marketing
                                         Promotion               Price
    satisfy individual and                             Mix
    organizational
    objectives.”
                                                        Place
                  - American Marketing
                           Association

August 30, 2012                                                          5
Definitions….contd
  Identifying and Satisfying Needs profitably




August 30, 2012                                  6
Marketing communication
  Purpose: Seek a
   cognitive, affective
                                     Event
                                                Advertising
   or behavioral                    Marketing


   response from the        Interactive
                              tools &                     Sales
   target audience        Unconventional
                               tools
                                                       Promotion




                                     Direct      Public
  Marketing                        Marketing   Relations


    communication mix

August 30, 2012                                                    7
The growth of advertising & promotions
(India)

                   Year     Advertising     % Growth over
                            expenditure       last year
                            (Rs. Crores)
            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

August 30, 2012                                             8
The growth of advertising & promotions
(Worldwide)




August 30, 2012                      9
The Philosophy of
Integrated marketing communication
                                      Advertising




                  Interactive tools                 Sales Promotion




                                      IMC
                  Unconventional                       Direct
                      tools                           Marketing



                                       Public
                                      Relations/
                                      Publicity



August 30, 2012                                                       10
IMC
 Bring together all tools of Marketing Communication to send
  consistent messages to target audiences
 A Concept of Marketing Communication Planning that
  recognizes the added value of a comprehensive plan that
  evaluates the strategic roles of a variety of Communication
  disciplines ( like Advertising, Sales Promotion, Public
  Relations, Events etc) and combines these disciplines to
  provide clarity, consistency and maximum impact
 Proposed by Communication specialists Michael hammer &
  James Champy in 1980
 Led to reorganizing of traditional advertising agencies. Eg –
  O&M in India


 August 30, 2012                                                  11
The Case of IMC for Incredible India




August 30, 2012                        12
Incredible India
 Background- Historically India was a less
  preferred international tourist destination
 Unorganised promotions by State run tourism
  boards, tour operators, Indian Delegates etc.
 Post 9/11 worldwide tourism industry was in a
  slump- opportunity for India
 Objective – Differentiate India from competing
  destinations by developing a unique, upmarket
  image for India as a Tourist destination


 August 30, 2012                                   13
Incredible India ….contd
 Target Audience – Affluent Tourists from US, Europe, Asis
  Pacific and Middle East
 USP – Ancient country with rich wildlife, The
  Himalayas, Yoga, Ayurveda, festivals & spiritual therapy.
 The department of tourism braught together all sources of
  communication.
 The iconic ”Incredible !ndia” logo, where the exclamation
  mark that formed the “I” of India was used to great effect
  across all communications.




August 30, 2012                                          14
The Communication Mix for Incredible India Campaign
 Advertising served the primary purpose of generating
    awareness
   Public Relations complemented by lending authenticity,
    addressing issues such as Safety
   Special Events – eg – Incredible India Road Shows built up
    excitement
   Participation in Industry Fairs –
   Direct Marketing – Print , electronic and audio visual mailers
   Online Marketing – Banner ads, detailed interactive website




 August 30, 2012                                                 15
The Impact
 IMPACT - The campaign successfully established India as a
  high-end tourist destination, generating a 16% increase in
  tourist traffic in the first year.
 the Incredible India campaign focused on spiritual tourism,
  resulting in a 28.8% increase in tourist traffic and a no.1
  ranking in the Travel+Leisure readers survey.
 In 2003, Condé Nast Traveller selected India as one of the top
  ten preferred destinations for the discerning traveller. “India’s
  results are very exciting and show the country’s increasing
  popularity amongst sophisticated travellers. It also reflects
  very positively on the individuals involved in promoting India
  as a premium tourist destination.” Sarah Miller, Editor, Condé
  Nast Traveller, 2003.

 August 30, 2012                                                  16
August 30, 2012   17
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August 30, 2012   19
August 30, 2012   20
August 30, 2012   21
Advertising
 Any paid form of non-
 personal presentation
 and promotion of ideas
 or products by an
 identified sponsor

 Objectives
      Inform
      Persuade
      Remind
      Reinforce

August 30, 2012           22
Advertising
                  Strengths              Weaknesses


                   Informs, persuades,
                                             Expensive
                   reminds, reinforces




                   Builds brand equity       Cluttered




                     Can reach large
                       audiences

August 30, 2012                                          23
Advertising types
                                            Selective-
      Brand-building       Public service
                                             demand

            Tactical         Corporate          B2B
        -Direct response



           National          Advocacy           Trade


             Retail        Primary-demand   …
August 30, 2012                                          24
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. Trade advertising
       b. B2B advertising
       c. Primary-demand advertising
       d. Selective-demand advertising
       e. Brand-building advertising


August 30, 2012                                         25
Sales promotion
          Changes the price-value relationship of a product



              Increases                         Increases
                value                             value

                    OR             OR              AND

                            Decreases            Decreases
                              price                price


August 30, 2012                                               26
Sales promotion tools  Rebates     Contests


              Sampling                          Sweepstakes




                                                              Loyalty
    Coupons
                                                              points




                              Consumer
  Price                                                          Point-of-
discounts                        sales                           purchase
                              promotion                                            Price deals     Trade shows



                                                                         Sales                                     Training
                                                                        contests                                 programmes




                                                               Allowances
                                                                                           Trade sales               Cooperative
                                                                                           promotion                 advertising



  August 30, 2012                                                                                                             27
Balancing sales promotion:
How much is too much?
                     Strengths                        Weaknesses
                        Immediate results                  Short-term results

                      Direct impact on sales          Makes consumers deal prone

                           Measurable               May erode brand equity & loyalty

                      Clears extra inventory                   Cluttered

                  Fights competitive promotions

                        Gets trade support

                  Less expensive than advertising
August 30, 2012                                                                    28
Direct marketing                       Tools
 One-to-one approach that
   uses advertising media to         Direct mail
   produce an inquiry, a
   transaction and some
   other immediate response    Direct response TV/radio

 No intermediary between       Mail-order catalogues
   manufacturer & customer

 Requires a database                  Internet


                                   Telemarketing…
August 30, 2012                                         29
Direct marketing
                  Strengths                    Weaknesses
                      Highly targeted                    Expensive


                       Measurable              Not suitable for large audiences

             Personalization & customization
                         possible

                  Two-way communication


                   Relationship building




August 30, 2012                                                                   30
Publicity
  Non-personal               Tools
    communication by third-    Press releases
    party sources regarding    Press conferences
    an organization’s          Special events
    products                   Opinion polls
                               Interviews
                               Contests
                               Weblog writeups…




August 30, 2012                                     31
Public relations
  Positively influencing    Tools
   public opinion to build    Publicity tools
   goodwill, and earn         Community affairs
   appreciation and
                              Events and conventions
   acceptance
                              Corporate advertising
  May result in publicity
                              Lobbying…




August 30, 2012                                     32
The publics of PR
                           Community

                  Media                   Customers


                               PR
              Government                  Employees


                           Shareholders

August 30, 2012                                       33
Publicity/PR

                  Strengths           Weaknesses
                   Builds goodwill        Little control

                      Low cost            Hidden costs

           Reaches many audiences     Difficult to measure

                                     No direct impact on sales



August 30, 2012                                              34
Internet as a
communication tool
                  Strengths                Weaknesses
                   Direct, interactive          Smaller audiences

                      Low in cost        Difficult for non-savvy audiences

                     Personalized

                       Targeted

                      Up-to-date

                     Less intrusive

August 30, 2012                                                         35
Internet tools
                  Websites


                        Emails


                                 Blogs


                                   Discussion forums


                                              Online games…
August 30, 2012                                               36
Personal selling
  Personal presentation by       Strengths
    a representative of an         Targeted, flexible,
    organization with the           interactive, measurable,
    purpose of influencing          offers immediate
    consumer buying                 feedback, ideal for high-
    decision, making a              value & high-deliberation
    sale, or building long-term     products & niche
                                    audiences
    relationships
                                  Weaknesses
                                   Expensive, not suitable
                                    for large audiences


August 30, 2012                                                 37
Unconventional media
                              Packaging
                  Customer
                                               POP
                   service
                               Novel
                Events,        Media        Advertising
              Trade shows                    specialties

                             Sponsorships


August 30, 2012                                            38
Quick Q!
         Which of the following tools of communication is
         likely to create the highest credibility among
         consumers?
       a.     Advertising
       b.     Publicity
       c.     Sales promotion
       d.     Packaging
       e.     Personal selling




August 30, 2012                                             39
Integrated marketing communication (IMC)

  Various promotional tools provide consistent
    messages to target audiences for clarity, consistency
    & impact

  One voice, one message, one strategy




August 30, 2012                                         40
Pepsodent Bhoot Police


                  Jingle on ‘The     School contact     Interactive    Chorus by
                  Midday show’        programmes          website     dabbawallas



                                           Encourage kids
 Pepsodent
                                            to brush teeth                  Contest to
commercials                                     at night                    write lyrics




                                   12 lakh kids signed the pledge,
                                     campaign won EMVIES’06
August 30, 2012                                                                            41
Why IMC?
                                           Changing
                  Decreasing impact      compensation       Need for a single
                      of advtg            structure of      brand custodian
                                            agencies

                                        Tighter control
                  New ways to reach                         Need for brand
                                             over
                     consumers                                 identity
                                        communication


                     Demand for
                                          Emphasis on
                       greater
                                       relationship mktg
                    accountability


                  Growth of database        Growth of
                        mktg           international mktg

August 30, 2012                                                                 42
The IMC model         Marketing plan                                                            Product
                  (objectives & strategies)



                                                                                  Promotion
                                                                                              Integrated   Price
                                        Advertising                                           Marketing

           Low control
                                                              Sales Promotion
            messages



                                                                                                 Place

                                        IMC
                                                                       Direct
   Interactive tools
                                                                      Marketing




                                                        Public
                       Unconventional
                                                      Relations/
                           tools
                                                       Publicity


August 30, 2012                                                                                                    43
Corporate objectives &           IMC objectives &
                 strategies                    strategies



           Marketing objectives &
                strategies




                         The IMC planning process
August 30, 2012                                                44
The IMC Plan
                  Situational analysis

                     Problem/opportunity
                        determination

                       Communication objectives


                              Budget determination

                                              IMC
                                           strategies

                                         Implement & monitor
                                              activities

                                                 Evaluate the
                                               Planning process
August 30, 2012                                                   45
Cadbury manages a crisis with IMC




August 30, 2012                        46

Imc

  • 1.
    Advertising & Integrated Marketing Communication August 30, 2012 1
  • 2.
    Learning Objectives ofthe Course On completing the course it is expected that you will be able to  Evaluate the need for Marketing Communication for a Brand  To Conduct relevant research & formulate the Communication Objectives for a Brand  To successfully liaison between the Advertising Agency & the Client Organization August 30, 2012 2
  • 3.
    Learning Objectives …..contd To develop effective Creative Strategy for Marketing Communication  To develop effective Media Planning for IMC campaign  To evaluate the Communication & Sales Effectiveness of Marketing communication August 30, 2012 3
  • 4.
    A Recap ofMarketing basics August 30, 2012 4
  • 5.
    Marketing  “Theprocess of planning and executing Product the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that Marketing Promotion Price satisfy individual and Mix organizational objectives.” Place - American Marketing Association August 30, 2012 5
  • 6.
    Definitions….contd  Identifyingand Satisfying Needs profitably August 30, 2012 6
  • 7.
    Marketing communication Purpose: Seek a cognitive, affective Event Advertising or behavioral Marketing response from the Interactive tools & Sales target audience Unconventional tools Promotion Direct Public  Marketing Marketing Relations communication mix August 30, 2012 7
  • 8.
    The growth ofadvertising & promotions (India) Year Advertising % Growth over expenditure last year (Rs. Crores) 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 August 30, 2012 8
  • 9.
    The growth ofadvertising & promotions (Worldwide) August 30, 2012 9
  • 10.
    The Philosophy of Integratedmarketing communication Advertising Interactive tools Sales Promotion IMC Unconventional Direct tools Marketing Public Relations/ Publicity August 30, 2012 10
  • 11.
    IMC  Bring togetherall tools of Marketing Communication to send consistent messages to target audiences  A Concept of Marketing Communication Planning that recognizes the added value of a comprehensive plan that evaluates the strategic roles of a variety of Communication disciplines ( like Advertising, Sales Promotion, Public Relations, Events etc) and combines these disciplines to provide clarity, consistency and maximum impact  Proposed by Communication specialists Michael hammer & James Champy in 1980  Led to reorganizing of traditional advertising agencies. Eg – O&M in India August 30, 2012 11
  • 12.
    The Case ofIMC for Incredible India August 30, 2012 12
  • 13.
    Incredible India  Background-Historically India was a less preferred international tourist destination  Unorganised promotions by State run tourism boards, tour operators, Indian Delegates etc.  Post 9/11 worldwide tourism industry was in a slump- opportunity for India  Objective – Differentiate India from competing destinations by developing a unique, upmarket image for India as a Tourist destination August 30, 2012 13
  • 14.
    Incredible India ….contd Target Audience – Affluent Tourists from US, Europe, Asis Pacific and Middle East  USP – Ancient country with rich wildlife, The Himalayas, Yoga, Ayurveda, festivals & spiritual therapy.  The department of tourism braught together all sources of communication.  The iconic ”Incredible !ndia” logo, where the exclamation mark that formed the “I” of India was used to great effect across all communications. August 30, 2012 14
  • 15.
    The Communication Mixfor Incredible India Campaign  Advertising served the primary purpose of generating awareness  Public Relations complemented by lending authenticity, addressing issues such as Safety  Special Events – eg – Incredible India Road Shows built up excitement  Participation in Industry Fairs –  Direct Marketing – Print , electronic and audio visual mailers  Online Marketing – Banner ads, detailed interactive website August 30, 2012 15
  • 16.
    The Impact  IMPACT- The campaign successfully established India as a high-end tourist destination, generating a 16% increase in tourist traffic in the first year.  the Incredible India campaign focused on spiritual tourism, resulting in a 28.8% increase in tourist traffic and a no.1 ranking in the Travel+Leisure readers survey.  In 2003, Condé Nast Traveller selected India as one of the top ten preferred destinations for the discerning traveller. “India’s results are very exciting and show the country’s increasing popularity amongst sophisticated travellers. It also reflects very positively on the individuals involved in promoting India as a premium tourist destination.” Sarah Miller, Editor, Condé Nast Traveller, 2003. August 30, 2012 16
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
    Advertising  Any paidform of non- personal presentation and promotion of ideas or products by an identified sponsor  Objectives  Inform  Persuade  Remind  Reinforce August 30, 2012 22
  • 23.
    Advertising Strengths Weaknesses Informs, persuades, Expensive reminds, reinforces Builds brand equity Cluttered Can reach large audiences August 30, 2012 23
  • 24.
    Advertising types Selective- Brand-building Public service demand Tactical Corporate B2B -Direct response National Advocacy Trade Retail Primary-demand … August 30, 2012 24
  • 25.
    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. Trade advertising b. B2B advertising c. Primary-demand advertising d. Selective-demand advertising e. Brand-building advertising August 30, 2012 25
  • 26.
    Sales promotion Changes the price-value relationship of a product Increases Increases value value OR OR AND Decreases Decreases price price August 30, 2012 26
  • 27.
    Sales promotion tools Rebates Contests Sampling Sweepstakes Loyalty Coupons points Consumer Price Point-of- discounts sales purchase promotion Price deals Trade shows Sales Training contests programmes Allowances Trade sales Cooperative promotion advertising August 30, 2012 27
  • 28.
    Balancing sales promotion: Howmuch is too much? Strengths Weaknesses Immediate results Short-term results Direct impact on sales Makes consumers deal prone Measurable May erode brand equity & loyalty Clears extra inventory Cluttered Fights competitive promotions Gets trade support Less expensive than advertising August 30, 2012 28
  • 29.
    Direct marketing Tools  One-to-one approach that uses advertising media to Direct mail produce an inquiry, a transaction and some other immediate response Direct response TV/radio  No intermediary between Mail-order catalogues manufacturer & customer  Requires a database Internet Telemarketing… August 30, 2012 29
  • 30.
    Direct marketing Strengths Weaknesses Highly targeted Expensive Measurable Not suitable for large audiences Personalization & customization possible Two-way communication Relationship building August 30, 2012 30
  • 31.
    Publicity  Non-personal Tools communication by third-  Press releases party sources regarding  Press conferences an organization’s  Special events products  Opinion polls  Interviews  Contests  Weblog writeups… August 30, 2012 31
  • 32.
    Public relations Positively influencing Tools public opinion to build  Publicity tools goodwill, and earn  Community affairs appreciation and  Events and conventions acceptance  Corporate advertising  May result in publicity  Lobbying… August 30, 2012 32
  • 33.
    The publics ofPR Community Media Customers PR Government Employees Shareholders August 30, 2012 33
  • 34.
    Publicity/PR Strengths Weaknesses Builds goodwill Little control Low cost Hidden costs Reaches many audiences Difficult to measure No direct impact on sales August 30, 2012 34
  • 35.
    Internet as a communicationtool Strengths Weaknesses Direct, interactive Smaller audiences Low in cost Difficult for non-savvy audiences Personalized Targeted Up-to-date Less intrusive August 30, 2012 35
  • 36.
    Internet tools Websites Emails Blogs Discussion forums Online games… August 30, 2012 36
  • 37.
    Personal selling Personal presentation by Strengths a representative of an  Targeted, flexible, organization with the interactive, measurable, purpose of influencing offers immediate consumer buying feedback, ideal for high- decision, making a value & high-deliberation sale, or building long-term products & niche audiences relationships Weaknesses  Expensive, not suitable for large audiences August 30, 2012 37
  • 38.
    Unconventional media Packaging Customer POP service Novel Events, Media Advertising Trade shows specialties Sponsorships August 30, 2012 38
  • 39.
    Quick Q! Which of the following tools of communication is likely to create the highest credibility among consumers? a. Advertising b. Publicity c. Sales promotion d. Packaging e. Personal selling August 30, 2012 39
  • 40.
    Integrated marketing communication(IMC)  Various promotional tools provide consistent messages to target audiences for clarity, consistency & impact  One voice, one message, one strategy August 30, 2012 40
  • 41.
    Pepsodent Bhoot Police Jingle on ‘The School contact Interactive Chorus by Midday show’ programmes website dabbawallas Encourage kids Pepsodent to brush teeth Contest to commercials at night write lyrics 12 lakh kids signed the pledge, campaign won EMVIES’06 August 30, 2012 41
  • 42.
    Why IMC? Changing Decreasing impact compensation Need for a single of advtg structure of brand custodian agencies Tighter control New ways to reach Need for brand over consumers identity communication Demand for Emphasis on greater relationship mktg accountability Growth of database Growth of mktg international mktg August 30, 2012 42
  • 43.
    The IMC model Marketing plan Product (objectives & strategies) Promotion Integrated Price Advertising Marketing Low control Sales Promotion messages Place IMC Direct Interactive tools Marketing Public Unconventional Relations/ tools Publicity August 30, 2012 43
  • 44.
    Corporate objectives & IMC objectives & strategies strategies Marketing objectives & strategies The IMC planning process August 30, 2012 44
  • 45.
    The IMC Plan Situational analysis Problem/opportunity determination Communication objectives Budget determination IMC strategies Implement & monitor activities Evaluate the Planning process August 30, 2012 45
  • 46.
    Cadbury manages acrisis with IMC August 30, 2012 46