Unit-1
Introduction
Integrated Marketing
Communication – Scope - Advertising management –
Advertiser, facilitating institutions and perspectives on advertising.
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• Marketing is a process of planning and executing the conception ,pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy the perceived needs ,wants and objectives of customer and the organization. (AMA)
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• Consumer market.
• Business to business market.
• Institutional market.
• reseller market .
Marketing mix
• Price
• Product
• Place
• promotion
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• Quality
• Design
• Features
• Brand name
• Packaging
• services
• warranties
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• Channels
• Transport
• Inventory
• Locations
• Discount
• Allowances
• Payment period
• Credit terms
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• Advertisement.
• Sales promotion.
• Direct marketing.
• Publicity.
• Personal selling.
• Internet marketing.
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Meaning of advertising:
Derived from Latin word
‘advertero’
• ‘Ad ’ means towards
• ‘Verto’ means to turn
• Literally “ totally turn people attention to a specific thing”
• Derived from French word ‘advertir’ which means to notify or to inform or to give public information's or announcement.
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Concept and Definition of advertisements
Definition:
Any paid form of non -personal presentation and promotion of ideas goods and services by an identified sponsor per (AMA)
Concept :
• Non personal and Paid form
• Sponsor is known
• Very cost effective
• Brand image
• Mass communication
• No opportunity for immediate feedback
• No immediate change in customer behavior.
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Elements in the communication process
• Sender
• Encoding
• Media
• Decoding
• Receiver
• Feedback
• noise
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Target audience may not receive the intended message because of:
• Selective attention
• Selective distortion
• Selective retention
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Steps in Developing effective
Integrated Marketing Communications
1. Identify target audience
– Image analysis
2. Determine the communication objectives
– Behavior modification
– Objective to inform
– Objective to persuade
– Objective to remind
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Steps in Developing effective communications
3. Design message
– Message content
– Message structure
– Message format
– Message source
4. Select channels
– Personal
– Non personal
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5.Establish the communication budget
•
To determine how much money to be spend on the promotions.
•
Methods:
1. Affordable method
2. Percentage to sales method
3. Competitive parity method
4. Objective and task method.
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6. Decide on the marketing communication mix
• Advertisement.
• Sales promotion.
• Direct marketing.
• Publicity.
• Personal selling.
• Internet marketing.
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Factors influencing promotional mix
1. Product related factors
– Complexity of product information.
– Stages of PLC.
– Product type and unit price.
2. Customer related factors
– Size and characteristic of the target markets.
– Type of buying decisions.
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•
Marketing channel and promotion strategy.
1. Push strategy
2. pull strategy
•
Branding strategy.
•
Pricing strategy.
•
Availabilities of fund.
•
Company personal.
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• Visibility of the firm
• Competitors action
7. Measuring the communication results
8. Manage IMC process
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Characteristic features of advertising
• One of the method of promotional mix
• It is a paid Mass communication
• Salesmanship in writing
• Non personal communication
• Sponsor is identified
• Sponsored publicity
• Influence buying behaviors of customer
• Persuades the buyer to purchase the goods adv.
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• Elements of marketing mix
• Promotion mix
• Mass communication
• Message
• Sponsor
• Persuasive
• Elements of control
• Identifiable and target group
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• Effectiveness of message
• Appropriate media
• Merchandise
• Advertising functions
• Responsibility of advertiser
• Fulfillment of objective
• Generates various activities
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All products cant be advertised effectively. Only product which possess certain essential characteristics or qualities can be advertised effectively.
Factors
• Primary demand
• Demand expansion
• Distinguishing nature of the product
• Technical features of the product
• Capable of provoking emotional buying motives
• Price of the product
• Adverts ability of funds for advertisement campaign
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• Delay in adv development due to late industrialization.
• Before in India Adv was mainly thro’ newspapers.
• All India radio introduced commercial adv in
1967.
• Adv in TV was introduced from 1976.
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• Pre independence- press adv
• In 1930 talkie and radio emerges as media.
• In 1950 Transit adv and cinema adv.
• 1970 media and special magazines.
• 1980 TV ,colour printing, radio.
• 1990 FM radio in private hands, satellite channels introduced.
• Internet .
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•
Broadly under four heads:
• Commercial function
• Social function
• Economic function
• Psychological function
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• Deceptive and misleading
• Does not help in lowering the prices
• Playing on human feelings, weakness and sentiments
• Leads to monopolies.
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Primary:
• To increase sales
• Persuade dealers to stock
• Assisting dealers to liquidate stocks
• To eliminate seasonal fluctuations
• Creation of demand
• Recognition of quality
• Protect manufactures interest
• Raising standard of living of people.
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• To lend moral support to salesman
• Sense of security
• Ensure product improvement
• To furnish correct information
• Appointment of efficient employees.
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• To announce a new product
• To announce modification
• To announce price change and new pack
• To invite enquiries
• To educate customer
• To maintain sales
• To remind
• To challenge competition
• To get back lost sales
• To recruit staff
• To test a medium
• to expand the market to new buyer
• To please stockists and sales force
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Dagmar approach for setting objectives
• Awareness
• Comprehension
• Conviction
• Action
Criticism of Dagmar
• Problem with response hierarchy.
• Sales objectives.
• Practicality and costs.
• Inhibition of creativity.
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• Information advertising
• Persuasive advertising
• Reminder advertising
Characteristic of objective
• Concrete, measurable tasks.
• Target audience
• Benchmark and degree of change sought
• Specified time period
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Hierarchy of effects model (Robert lavidge and gray Steiner)
1.
Unawareness of the goods or services
2.
Awareness of the product
3.
Knowledge (what the product offers)
4.
Liking (develop favorable attitude towards pdt
5.
Preference (one brand over other)
6.
A desire to buy the pdt and Conviction of wise decision.
7.
Actual purchase of the product
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1. Precipitation
2. Persuasion function
3. Reinforcement
4. Reminder advertisement
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• Wastage of natural resources.
• Indecent and vulgar
• Slaves to brand
• Induces to use cigarettes,liquor,tobacco product.
• It frustrate people who cant afford to buy.
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1. Attention
2. Interest
3. Desire
4. Action
5. sale
Aidas model
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• Advertiser ( client)
• Advertising agency
• Media organization
• Specialized marketing communication services.
• Collateral services
Organizing for advertisement and promotion
• Centralized
• Decentralized
• In –house agencies.
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• Full service agency
•
Services they perform for a client
• Account service
• Marketing service
• Creative service
• Management and finance
Other types of agencies and services
• Creative boutique
• Media buying service
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• Compatibility
• Agency team
• Agency Stability
• Creativity
• Services.
• Financial soundness
• Problem solving capacity
• Profitability.
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• Referrals.
• Solicitation
• Presentation
• Public relations
• Image and reputation
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• Fee arrangement
• Cost plus agreement
• Incentive based compensation
• Percentage charges
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Advertisement Budget
• It is the total amount of money which a marketer allocated for advertising for a specific time period.
• The major part of adv budget is provided for buying space and time in media.
Method of determining the advertisement budget
Top down approaches:
• Percentage of sales method.
• Affordable method.
• Arbitrary allocation.
• ROI
• Competitive parity method.
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• Objective and task method
• Payout planning
• Quantitative models.
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• Allocating to IMC elements
• Client/agency policies
• Market size
• Market potential
• Market share goals.
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• Advertising plan
• Creation and execution
• Coordination
• Research
• Mechanical production
• Accounting
• Public relation
• Traffic.
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• Poor performance or service
• Poor communication
• Unrealistic demand by the clients
• Personality conflict
• Personnel changes
• Change in client marketing strategy
• Declining sales
• Conflicting compensation philosophies
• Conflict of interest.
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• Direct response agencies
• Sales promotion agencies
• Public relation firms
• Interactive agencies
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Campaign means organized and planned use of paid publicity for the accomplishment of objective
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• The trade consist of enterprising business people
• For distributor, wholesaler and retailer
• They are concerned only to know if these qualities will make the product saleable to their end-customers and earn themselves income and profit
• Contents of trade advertising are the promotional support that is planned in terms of launch advertising
• Include planned sales promotion schemes to encourage customers and consumers to try and buy the product
• Incentives for the retailers might also be included
• Trade advertising also states the point-of-sale (POS) and display material available as well as any in-store demonstration that are planned
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Consumer Advertising
• Generic Advertising
• Product Advertising
• Brand Advertising
• Range Advertising
• Corporate Advertising
• Retail Advertising
• Co-operative Advertising
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• Generic advertising means advertising a product type rather than a brand and is usually undertaken by a trade association or consortium of manufacturers and supplier
• Does not promote a particular supplier but promotes the overall benefits and advantages of the product type
• Eg: Got Milk?
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• Concentrates on promoting the benefits and advantages of the product, such as the price, value and performance
• Eg: Rinso, Coca Cola, etc
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• The emphasis of brand advertising is on the brand name, with sometimes little or no reference to the product
• The essence of brand advertising is usually image building for the total product offeringdeveloping that feeling of goodwill between the branded product or brand name and the customer
• Eg: Nike
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• Promote complete range of products
• Range are frequently promoted in a single commercial or advertisement
• Eg: Rinso-Molto, Pixy
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• Promotes the company not the individual products
• Also used for financial advertising to re-assure existing shareholders, launch a company on the stock exchange or attract new investors
• Eg: XL, Telkomsel, Indosat
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• The message may be based on what brands and products they have or the range of goods that they can offer, though it may also include additional benefits like a convenient location, free parking, late-night opening or even a restaurant/coffee shop
• Eg: Carrefour, Electronic city, etc
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• The message is relative simple-for a limited period, this brand/product/model pack is available only at this outlet at a special offer price or with a gift
• Eg: Credit card BCA-Starbucks, XL-
Blackberry, etc
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• Direct advertising is advertising to customer who deal with the manufacturer or supplier without intermediate wholesalers and retailers
• Eg: TV Media
Public-Service Advertising
• A public service Advertising ( PSA ) or community service announcement (CSA) is a non-commercial advertisement, typically on radio or television, broadcast for the public.
• The main concept is to modify public attitudes by raising awareness about specific issues.
• Eg: Anti Narkoba, Pekan Imunisasi Nasional
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