03. unit 1 IMC

advertisement
Unit-1
Introduction Integrated Marketing
Communication – Scope - Advertising management –
Advertiser, facilitating institutions and perspectives on
advertising.
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Introduction to Marketing.
• 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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Types of markets
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Consumer market.
Business to business market.
Institutional market.
reseller market.
Marketing mix
• Price
• Product
• Place
• promotion
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PRODUCT
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Quality
Design
Features
Brand name
Packaging
services
warranties
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PLACE
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Channels
Transport
Inventory
Locations
PRICE
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Discount
Allowances
Payment period
Credit terms
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Promotional mix
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Advertisement.
Sales promotion.
Direct marketing.
Publicity.
Personal selling.
Internet marketing.
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Introduction to Advertising
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
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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
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Behavior modification
Objective to inform
Objective to persuade
Objective to remind
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Steps in Developing effective
communications
3. Design message
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Message content
Message structure
Message format
Message source
4. Select channels
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Personal
Non personal
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5.Establish the communication budget
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To determine how much money to be spend
on the promotions.
Methods:
Affordable method
Percentage to sales method
Competitive parity method
Objective and task method.
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6. Decide on the marketing
communication mix
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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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Firm related factors
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Marketing channel and promotion strategy.
Push strategy
pull strategy
Branding strategy.
Pricing strategy.
Availabilities of fund.
Company personal.
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Situation related factors
• Visibility of the firm
• Competitors action
7. Measuring the communication results
8. Manage IMC process
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Characteristic features of advertising
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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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Nature of advertising
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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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Scope of advertising
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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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Advertisability of a product
All products cant be advertised effectively. Only
product which possess certain essential characteristics
or qualities can be advertised effectively.
Factors
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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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Indian advertising
• 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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Evolutions of adv in India
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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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Functions of adverting
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Broadly under four heads:
Commercial function
Social function
Economic function
Psychological function
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Criticism of advertisement
• Deceptive and misleading
• Does not help in lowering the prices
• Playing on human feelings, weakness and
sentiments
• Leads to monopolies.
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Setting Advertising Objectives
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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Secondary Objectives
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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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Why do we advertise
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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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Classification of objective
• Information advertising
• Persuasive advertising
• Reminder advertising
Characteristic of objective
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Concrete, measurable tasks.
Target audience
Benchmark and degree of change sought
Specified time period
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Perspectives of advertisement
Hierarchy of effects model (Robert
lavidge and gray Steiner)
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Unawareness of the goods or services
Awareness of the product
Knowledge (what the product offers)
Liking (develop favorable attitude towards pdt
Preference (one brand over other)
A desire to buy the pdt and Conviction of wise
decision.
7. Actual purchase of the product
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Sheath model(jagdish n.sheth)
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Precipitation
Persuasion function
Reinforcement
Reminder advertisement
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Criticism of 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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Aidas model
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Attention
Interest
Desire
Action
sale
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PARTICIPANTS OF IMC
(Facilitating Institutions)
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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Advertising agency
• 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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Selection of agency
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Compatibility
Agency team
Agency Stability
Creativity
Services.
Financial soundness
Problem solving capacity
Profitability.
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New client acquiring
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Referrals.
Solicitation
Presentation
Public relations
Image and reputation
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Agency Remuneration
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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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Build –up approach
• Objective and task method
• Payout planning
• Quantitative models.
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Factors influence budget allocation
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Allocating to IMC elements
Client/agency policies
Market size
Market potential
Market share goals.
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Functions of advertising agencies
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Advertising plan
Creation and execution
Coordination
Research
Mechanical production
Accounting
Public relation
Traffic.
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Why agencies lose clients
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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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Specialized services
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Direct response agencies
Sales promotion agencies
Public relation firms
Interactive agencies
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Advertisement campaign
Campaign means organized and planned
use of paid publicity for the
accomplishment of objective
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Trade Advertising
• 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
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Generic Advertising
Product Advertising
Brand Advertising
Range Advertising
Corporate Advertising
Retail Advertising
Co-operative Advertising
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Generic Advertising
• 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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Product Advertising
• 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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Brand Advertising
• 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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Range Advertising
• Promote complete range of products
• Range are frequently promoted in a single
commercial or advertisement
• Eg: Rinso-Molto, Pixy
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Corporate Advertising
• 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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Retail Advertising
• 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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Co-operative Advertising
• 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, XLBlackberry, etc
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Direct-Response Advertising
• 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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