Unit 1 IMC DD

INTEGRATED MARKETING COMMUNICATION

UNIT I INTRODUCTION TO ADVERTISEMENT

Concept –definition-scope-Objectives-functions-principles of advertisement – Social, Economic and Legal Implications of advertisements – setting advertisement objectives – Advertisement Agencies – Selection and remuneration – Advertisement campaigns – case studies.

UNIT II ADVERTISEMENT MEDIA

Media plan – Type and choice criteria – Reach and frequency of advertisements – Cost of advertisements - related to sales – Media strategy and scheduling. design and execution of advertisements -Message development – Different types of advertisements – Layout – Design appeal – Copy structure – Advertisement production – Print – Radio. T.V. and Web advertisements – Media Research – Testing validity and Reliability of ads – Measuring impact of advertisements –case studies.

UNIT III SALES PROMOTION

Scope and role of sale promotion – Definition – Objectives of sales promotion - sales promotion techniques – Trade oriented and consumer oriented. Sales promotion – Requirement identification– Designing of sales promotion campaign – Involvement of salesmen and dealers – Out sourcing sales promotion national and international promotion strategies – Integrated promotion – Coordination within the various promotion techniques – Online sales promotions- case studies.

UNIT IV PUBLIC RELATIONS

Introduction – Meaning – Objectives –Scope-Functions-integrating PR in to Promotional Mix- Marketing Public Relation function- Process of Public Relations-advantages and disadvantages of PR-Measuring the Effectiveness of PR- PR tools and techniques. PR and Media Relations, - PR consultancy: Pros and Cons. - Discussion on opinion survey of PR in Public and Private Enterprises. PR- Research, Evaluation, Counselling-Marketing Public Relations (MPR)-Structure of Public Relations Department. Budgeting of PR. PR Agencies.

UNIT V PUBLICITY

Introduction – Meaning – Objectives - Tools – Goals of Publicity – Scope of Publicity – Importance of Publicity – Difference between Marketing, PR and Publicity - Social publicity – Web Publicity and Social media – Publicity Campaigns

UNIT I INTRODUCTION TO ADVERTISEMENT

Concept –definition-scope-Objectives-functions-principles of advertisement – Social, Economic and Legal Implications of advertisements – setting advertisement objectives – Advertisement Agencies – Selection and remuneration – Advertisement campaigns – case studies.

Meaning of Advertisement

Advertising simply put is telling and selling the product. Advertising Management though is a complex process of employing various media to sell a product or service.

Definition of Advertising

According to American Marketing Association, “Advertising is any paid form of non-personal presentation of ideas, goods or services by an identified sponsor”.

The average person is exposed to more than 600 advertisements per day.

Advertising - influence – way - we think and/or persuade us.

Case Study

Sachin and Virag are two enterprising youth. They have passed out from IIM,Bangalore. They thought instead of doing a job, they will launch fresh vegetables in Indian markets. Having learnt of the future conventional foods, they decided to venture into cultivation of mushrooms.

Mushrooms are known to be the best alternative food for vegetarians. The first trial batch of mushrooms that they produced was bought by Star Hotel in Bangalore. Further, the hotel placed orders for supply of 20 kgs every day.

Now mushroom industry is run by small entrepreneurs, like Sachin and Virag. Another big player M/s Ashtavinayak Mushrooms, equipped with cold storage facility was more interested in the export market.

Sachin and Virag have set their sights high. They aim to sell mushrooms in a very big way all over India. Mushrooms have a great market potential and is a perishable food.

• How will you advise Sachin and Virag, as how to increase the consumer awareness about this new food?

• What would be your suggestions for distribution channel for mushrooms?

The Key Players

• Advertiser• Agency• Media• Supplier

Roles of Advertising

1. Marketing

The process - business uses to satisfy consumer needs by providing goods and services.

2. Communication

– Can reach a mass audience

– Introduces products

– Explains important changes

– Reminds and reinforces

– Persuades

3. Economic

Advertising is an objective means for providing price-value information, thereby creating a more rational economy.

4. Societal

– Informs consumers about innovations and issues

– Teaches consumers about new products

– Helps shape consumer self-image

Features of advertising

• Advertising provides information

• Paid form of communication

• Non-personal presentation

• Gives publicity to goods, services and ideas

• Target oriented

• Creativity

Scope of advertising

• Message

• Media

• Merchandise

• Advertising functions

• Objectives

• Activities

The most commonly used Advertising Techniques

• Ideal Kids - Ex: Barbie commercials

• Heart Strings- Ex: Hallmark

• Family Fun- Ex.:Game board commercials

Sounds Good - Ex.: McDonald’s

• Excitement - Ex.: Movie commercials

Cartoon Characters - Ex.: Cereal commercials

• Bandwagon

• Omission - Ex.: Breakfast commercials

• Facts and Figures - Ex.: Aspirin, “This Aspirin relieves pain 10 times faster than the leading brand.”

• Repetitions - Tide

• Product Placement – Nike

• Star Power

Steps in Advertising Process

• Briefing : SWOT

• Knowing the Objective

• Research

• Target Audience:

• Media Selection

• Setting the Budget

• Designing and Creating the Ad

• Perfection

• Place and Time of Ad

• Execution:

• Performance

Rasna – History

• Pioma Industry – first introduced soft drink in India , 1976. • Brand Name “Jaffee” – Renamed as Rasna in 1979 • 80’s – No profit • Coca cola Starts its operation in India. • FERA – banned Coca cola in India • Advantages for Rasna. • In 2012 , Ready- to drink • Pioma has well developed Distribution Network.• 35 Depots • 2500 Stockiest • Ability to access 1.8 m grocery, retail outlet • 700 sales person.

Objectives of Advertising

• Trial: the companies which are in their introduction stage generally work for this objective.

• Continuity: this objective is concerned about keeping the existing customers to stick on to the product.

• Brand switch: this objective is basically for those companies who want to attract the customers of the competitors.

• Switching back: this objective is for the companies who want their previous customers back, who have switched to their competitors.

Other Objectives

• Informing • Influencing • Reminding • Adding Value • Assisting with other company efforts

Functions of Advertisement

• Communication with consumer : There is an increasing need for information about a wide variety of products as the economy expands and grows more complex.

• Persuasion : Advertising attempts to persuade prospective buyers to buy a product / service.

• Contribution to Economic Growth: Advertising contributes to economic growth by helping to expand the market, particularly for new product, and by helping to develop new market segments.

• Catalyst for change : Creativity inherent in advertising leads to the discovery of new relationships that can change the perception of a prospect.

• Stimulates Demand : inform consumer about availability of product in the market.

• Strengthens other promotion mix elements : Advertising does the pre-selling of the product and makes the job of salespeople easier.

• Develops Brand preference: Satisfied customer – brand preference.• Reduce Cost : Cut down selling cost • Competitive weapon • Brand image building • innovation • Growth of media

Principles of advertisement

• Grab people • Be clever and creative• Speak loudly • Do not make people think • Use colors that make sense• Be informative • Be memorable • Show not tell• Use humour

Types of Advertisement

Types of Ad

Geographical Spread

Timing of response

Corporate philosophy

Demand Influence

Target Group

Basis of media

1. Geographical Spread

- National Advertising

- Local Advertising

- Global Advertising

2. Target group

- Consumer Advertising

- Industrial Advertising

- Trade Advertising

-Professional Advertising

3. Demand influence

- Primary Demand

-Selective Demand

4. Corporate Philosophy

- Corporate advertising

-Brand advertising

= Informative brand ad

= Persuasive brand ad

= Reminder brand ad

= Negative Advertising

5. Timing of the response

- Direct action ad

- Indirect action ad

- Surrogate advertising

6. On the basis on media

- Audio Ad

- Visual Ad

- Audio-visual

- Written Ad

-Internet Ad

-Verbal Ad

Advantages of Advertisement

Benefits of advertisements for the business• Meeting competition• Steady demand• Higher sales volume• Introduction of new products• Goodwill• Employee morale

Benefits of advertisements to the consumers

• Convenience• Education of the consumers• Fair prices• Better quality• Contact between producers and consumers

Benefits of advertisements for the society

• Generates employment• Standard of living• Stimulates research and developments • Promote art and culture

Disadvantages

• Higher prices• Artificial living• Misleading• Wastage of National resources• Unethical

Implication of advertisement

• Social • Economic• Legal

Social Implication of advertisement

• Positive social implication • Negative social implication

Positive social implication

• Informed Society • Health and hygiene awareness • Right of consumers• Preventive course for dreaded diseases• New ideas• Advertisements contribute to creativity of people • Environmental protection• Social change • Quality consciousness• Promotion of National interest

Negative Social implications of Advertisement

• Children and advertisement • Control of media (censorship)• Materialism and consumption (Childhood obesity)• Stereotype(type , label)• Wrong message • Religion and culture • Message problem • Undetermines social values(Perfume)

Economic implication of advertisement

• Positive social implication • Negative social implication

Positive social implication

• Effect on production cost, distribution cost, prices• Effect on demand • Effect on competition • Effect on consumer choice • Effect on business cycle • Effect on national income • Advertising and creation of utility • Effect on employment • Effect on product quality

Negative social implication

• Advertising is not productive • Advertisement forces people to desire and buy things which in fact

are not within their means • Advertising simply multiplies the needs• Advertising increase the cost of goods• Advertisement encourages waste• Restricts entry of new business unit• Reduce consumer choice• Wastage of national resources

Legal Implication

• Indian penal code 1860• Drugs and cosmetics act 1940• Drugs control act 1950• Young persons act 1956• Indecent representation of women act 1986• Emblems and Name act 1950• Prevention of insult to national honour act 1971• Prize competition act 1955• Infant milk substitutes, feeding bottles and infant food act 1992 • Indian copy right act 1957• Trademark act 1999• MRTP act 1984• Consumer production act 1986• Cigarettes and other tobacco product act 2003

Setting Advertisement Objectives

Advertising communicates the message regarding product, price, place of availability, sales promotion schemes, etc. Such communication informs and reminds the target audience about the advertisers product and persuades the target audience to buy the advertisers product. So ultimately advertising helps to increase sales.

According to Philip Kotler, “The objectives of advertising are to inform, to persuade and to remind the target audience about the advertiser’s product”

Types of Advertising objectives

Types of Ad objectives

Specific objectives of Ad

Communication Objectives

Sales Objectives

Sales objectives of Advertisement

• The ultimate aim of advertising is to sell the product in the market and to raise the level of present sales.

• On certain occasions, the objective of advertisement is to increase retail sales through off-season , special festival discounts, gift-schemes, clearance sales, etc.

Limitation• Advertising is not the only factors affecting sales• Effect of Advertising on sales in long Run.

Communication Objectives of Advertisement

Advertising is a psychological process which is designed to bring positive change in the behavior of audience and to induce them to buy the product.

One of the major objectives of advertising is to change the persons attitude in a way that moves him closer to the product or service

• To increase brand awareness • To increase knowledge • To create linking• To induce preference

Specific objectives of Advertisement • To increase demand • To sell a new product and to build new brands• To Educate the masses • To build brand preference• To build goodwill• Help middlemen• To Support salesmen • To Remind the customers of the product and company • To reach customers left out of salesmen• To inform about changes in Marketing Mix • To neutralize competitors advertisement • To enter in new geographical area• To do entire selling job • To overcome Dissonance of buyers• Specific objectives of classified advertising

DAGMAR

“Defining Advertising goals for Measured Advertising Result”

Under DAGMAR approach the main objective of advertising is to communicate the desired message to the target audience. This communication involves following four stages

• Awareness • Comprehension (Understanding) • Conviction(Persuasion)• Action

Features of Advertisement objectives in DAGMAR

• Well- Defined objective• Benchmark and Degree of Change Sought(Present

status of target audience, Changing) • Well Defined target audience • Specified time period (time – few months or year)

Disadvantages

• Sales objective (only – communication) • Costly• Problem with communication Hierarchy• Effect of other factors (Communication from one

person to other)

Ad Agencies

“Advertising agency is a service organization that specializes in planning and executing advertising programmes for its clients ”

Functions of AD Agency

• Contacting Clients• Advertising planning • Creative function• Developing and preparing AD copy • Approval from client • Media selection and scheduling• Ad Execution • Evaluation function• Marketing function• Research function • Accounting function

Organizational Structure of Ad agencies

Types of Ad agencies

• Full service agency• In-house agencies(planning and preparing of advertising

material)• Creative Boutiques• Media buying service• Special service agency (Specialized in particular area)• Sweet shop (local, only in one city) • Interactive agencies(consulting )• Healthcare communication Agencies• Medical education agencies

Selection of Ad agencies

• Location • Size• Agencies working foe competitors• Image of agency • Service offered by ad agency• Rate charged • Creative and skills• Past record • Quality of staffs • Financially sound • Experience

Remuneration

• Commission• Fee arrangement • Cost- plus agreement• Incentive based compensation • Percentage charge • Speculative basis

Advertisement campaigns

• As advertising campaign include a series of ads, placed in various media which are designed to meet objectives and are based on analysis of marketing and communication situation

NIKE – Just do it

AMUL - Taste of India

Importance of AD campaigns

• Establishing a feeling of urgency for the buyer • Advertisers benefit concerns• Avoiding failure • Consumers benefit

Steps in AD campaign planning

• Appraisal of Advertising opportunity • Analyzing and defining the target market• Setting advertising objectives• Determining the advertising budget • Deciding media and creative strategy • Creating ads, pre-test and release ad • Evaluating final result