Integrated Marketing

Communication
The Promotion Mix

The promotion mix is the specific blend of advertising, public

relations, personal selling, and direct-marketing tools that the
company uses to persuasively communicate customer value and
build customer relationships
Marketing communications (promotion)
• Consists of persuasive communication
• Involves communicating information between sellers and potential
buyers and/or others involved in distributing the product
• Tries to influence attitudes and behaviour
• The marketing manager’s main promotional task is to inform target
customers that the right product is available at the right place and
the right price

(Marketing: Creating and Delivering Value, 4/e, Quester et al. p. 452)

 The marketing communications mix
• There are many choices of methods and techniques for achieving
marketing communications objectives
• Major categories
– Advertising
– Direct-response promotion (including Web sites and the Internet)
– Sales promotion
– Publicity and public relations
– Personal selling
• Basic objectives include
– Informing, persuading and/or reminding
Promotion Mix Strategies
• PUSH vs. PULL
– PUSH
Producer marketing activities to Retailers and Wholesalers who resell to Consumers
– Personal selling, trade promotion by producer and personal selling, advertising and sales
promotion by wholesaler/retailer…
– PULL
Producer marketing activities directed at consumer to create demand from retailers and
wholesalers that then creates demand from producer.
– Consumer advertising, sales promotion…
Integrated Marketing Communications (IMC):
“is the coordination and integration of all marketing communications
tools, avenues, and sources within a company into a seamless program
that maximizes the impact on consumer and other end users at a minimal
cost.”
Clow and Baack, 2004, p.8
Advertising
• Mass media advertising reaches large numbers geographically dispersed at
low cost per exposure with ability to repeat message with frequency

• PROCESS:
1. Set objectives
2. Develop strategy
– Message strategy
– Message execution
– Slice of life, lifestyle, fantasy, mood, musical, symbolic, technical expertise, scientific, testimonial
– Select media (reach, frequency, impact)
3. Evaluate advertising
Sales Promotion
Short term incentives designed by marketers for the purpose of encouraging
the purchase of a product.

• Consumer promo tools:

– Samples, coupons, rebates, price packs, premiums, ad specialties, loyalty programs, point-
of-purchase displays/demos, and contests/sweepstakes

• Business promo tools:

– conventions/trade shows and sales contests
Personal Selling
• Involves two way personal communications
• Organization:
– Territorial, Product, Customer types, Outside vs. inside sales, and team selling

• Process:
– Prospect, pre-approach, approach, present, handle objections, close, follow-up

• Relationship Marketing:
– Process of creating, maintaining, and enhancing strong, value-laden relationships with
customers and other stakeholders.
DRM (Direct Respone Marketing)
• Mass media marketing in a one-to-one manner.
• Requires Database
• Forms:
– Telemarketing
– Direct Mail
– Catalogue Marketing
– Direct Response TV (order now)
PR (Public Relations)
• Purpose is not to communicate to the market about products but rather to
communicate to the company’s publics about the company itself.
• Functions:
– Press relations
– Product Publicity
– Public Affairs
– Lobbying
– Investor Relations
– Development (financial or volunteer support)
– Crisis management
Public relations and publicity
• Public relations (PR) involves communicating with several
interest groups—Employees, shareholders, governments and
political parties as well as customers and the general public
• It is aimed at fostering positive publicity and may be used to
counter negative publicity
• Publicity comprises all word-of-mouth (negative or positive)
and media coverage
• There is such a thing as negative publicity (including
rumours and myths)
Functions of advertising
• Increasing customer base
• Increasing primary demand
• Increasing usage
• Reducing the time gap between purchases
• Branding
INTRODUCTION TO
ADVERTISING
 Definition

A form of marketing communication used to encourage,

persuade, or manipulate an audience (viewers, readers or
listeners; sometimes a specific group) to take or continue to
take some action
 Definition of Advertising
• According to “Philip Kotler” & American Marketing Association. The
advertising is any paid form of non personal presentation of
• Ideas
• Goods
• Services by an identified sponsor that is called Advertising.
• Advertising is paid persuasive communication
• Uses nonpersonal mass media to reach broad audiences to connect an
identified sponsor with a target audience
5 M’s OF ADVERTISING

Money

Measurement Mission

5 Ms

Media Message
NATURE AND SCOPE OF
ADVERTISING
• Consists of all activities involved in presenting to an audience a
non-personal, sponsor-identified, paid-for message about a
product or organization.
• Advertising is distinguished from other forms of marketing
communications:
• It has a verbal and/or visual message.
• The sponsor of the message is identified.
• Delivery is through recognizable (usually mass) media.
• There is payment by the advertiser to the media for carrying the
message.
 The Key Players
Advertiser • Uses advertising to send out a
message about its products
•
• Initiates the advertising effort by
identifying a marketing problem
•
• Approves audience, plan and
•
budget
• Hires the advertising agency
 The Key Players
Agency • Has strategic and creative
expertise, media knowledge,
workforce talent, and
negotiating abilities
• Advertising department
 The Key Players
Media • The channels of communication that
carry the message to the audience
• Are also • companies or huge
•
conglomerates
• Mass media advertising can be cost
effective because the costs are spread
over the large number of people the ad
reaches
 The Key Players

Supplier • Assist advertisers, agencies,

and the media in creating and
placing the ads
• Vendor services are often
cheaper than those in-house
Advertising Defined
• Advertising is the non-personal communication of information
usually paid for and usually persuasive in nature about products,
services, or ideas by identified sponsors through the various media.

-Bovee (1992)
Non-personal
Two ways of selling things:
a. Personal Selling
b.Non-Personal
Out-Door Advertisement
• Bill-board and message painted on the side of buildings
are common forms of out-door advertising, which is
often used when quick, simple, ideas are being
promoted.
 Outdoor advertising
• use of different tools to gain customer’s attention.
– Billboards: The billboards are present all around the city but the
content should be such that it attracts the attention of the customer

– Kiosks: The kiosks are an easy outlet of the products and serve as
information outlets for the people too

– Events & Tradeshows: Organizing events such as trade fairs

and exhibitions for promotion
In-Door Advertisement

• This kind of advertisement provide the best

opportunity of putting over a reasoned selling
argument. The advertisement are addressed to
the reader, listener and viewer at a time of
leisure when he or she can observe the message.
• Product advertising:

– Designed to promote the sale of a specific product or service

– May be direct action  quick-response
– May be indirect action  over a longer time

• Institutional or corporate advertising:

– Promotes the firm or tries to create a positive image

– May be customer-service
– May be public-service
• Primary demand advertising:
– Intended to stimulate use of a category of products
– Pioneering advertising  Primary demand done in the introductory stage of PLC

• Selective demand advertising:

– Intended to encourage purchase of a particular brand or the products and services of a specific
firm
– Comparative advertising  Direct or indirect comparisons to a rival brand
Print Advertising

• used for advertising since long.

• E.g.- newspapers and magazines

• Using the print media, brochures and fliers.

• advertising space and the cost depends on several factors.

– The quantity of space,

– the page of the publication,

– and the type of paper

 Painted Hoardings
Commonly• such types of hoardings are painted on large studios with the
help of line drawings and oil painting.
• & Graphical machines both are used to make painted
Hand painted
hoarding. •
 Digital Hoardings
• from computer programs and software.
Created
Can be• designed to display running text, images and other contents.
Can display several different displays from the same company, and
•
even provide several companies.
 Mobile Hoardings
• Movable •
• Difficult to ignore.
•
• Can be placed • wherever there is heavy foot traffic due to an event –
including convention centers, train stations, airports and sports arenas.
• Information •is retained through repetition.
 Broadcast Advertising

• very popular all around the world.

• consists of television, radio, or Internet advertising.

• The cost of the advertisement depends on

– the length of the ad and

– the time at which the ad would be appearing.

• Radio advertising is not what it used to be after the advent of television and Internet,
but still there is specific audience for the radio ads too. The radio jingles are quite
popular in sections of society and help to sell the products.
 Covert Advertising
• the product or the message is subtly included in a movie or TV
serial.
• There is no actual ad, just the mention of the product in the movie.
• For example, TATA safari covert advertising in “Singham
returns”
 Public Service Advertising
• advertising is for the public causes.

• There are a host of important matters such as AIDS, political integrity,

energy conservation, illiteracy, poverty and so on all of which need more
awareness as far as general public is concerned.

• This type of advertising has gained much importance in recent times and is
an effective tool to convey the message.

• https://www.youtube.com/watch?v=xHf6joKdCHk

• https://www.youtube.com/watch?v=OSb5afmesJQ
 Online advertising
• Online advertising is the newest and fastest growing way to advertise.
The Internet now provides everything from links on sites, to banner ads
on sites, to small ads on sites, to pay per click advertising.
 Retail or Local advertising

• Significant smaller businesses/companies

• do not sell over the Internet and therefore do not have a global marketplace

• Local media sites are the best ways to advertise for local businesses

• Advertising using fliers, mailers, postcard coupons,

• is a great way to connect with residents in your business' local area.

• A great advantage it's a great way to connect with new movers in the area that are
looking for businesses for the first time.
 Direct-Response advertising
• prospective customer is urged to respond immediately and directly to the advertiser, through
the use of a 'device' provided in the advertisement.
• These devices (called direct response mechanisms) include a
(1) coupon to cut and mail,
(2) business reply card,
(3) Toll-free telephone number, or, on the internet,
(4) hotspot to click.
Most retail sale advertisements are direct response ads in one way or the other.
 Celebrities Advertisement

• Although the audience is getting smarter and smarter and the modern
day consumer getting immune to the exaggerated claims made in a
majority of advertisements, there exist a section of advertisers that still
bank upon celebrities and their popularity for advertising their
products.
 Institutional advertising

• aimed at creating an image, enhancing reputation, building goodwill, or

advocating an idea or the philosophy of an organization, instead of sales

promotion.

• When employed by an organization to market itself (instead of its products), it is

called corporate advertising.

Personal advertising
• Ads that are placed by individuals with a specific purpose, such as
matrimonial, situation wanted, selling some household goods, or placing an
obituary notice for a dear one.
Vacancy or appointment advertising
• Advertisements that detail situations/jobs vacant.

• Placed either by the employer or placement agencies, keeping

the name of the company secret.
Retailer Advertising

• Usually carried out in local markets by organizations and businesses to promote sales or
increase consumer traffic.
Business to Business advertising

• Advertising that is aimed at wholesale buyers of goods and

services,
Advertising Agencies
• Achilov
• Anshul
• Renuka
• Lavesh
Advertising Functions
• To make the product distinct from other competitors’
• To communicate information
• To goad the customers into buying the product
• To expand the distribution of other products
• To encourage brand preference and loyalty
• To reduce the sales cost
Impact of Advertising
• Economic
• Political
• Cultural