Lecture 5: Integrated Marketing Communications (IMC)

1.1. Modern marketing involves in not just developing a good

product, attractive price/packaging and ensuring availability to
target customer. Companies must also communicate with current
and prospective customers. IMC is the concept under which a
company carefully chooses many communication channels to
deliver a clear, consistent message about the product.
(MESSAGE)

1.2. Marketing communication (promotion) mix

There are five marketing communications to put into the mix:
Advertising, Sales Promotion, Public Relations, Personal Selling,
and Direct Marketing.

Mix element
Advertising
Any paid form of non-personal
communication of ideas or
products in the "prime
media": i.e. television,

Advantage
Good for building
awareness
Effective at reaching a
wide audience
Repetition of main brand

Disadvantage
Impersonal cannot answer all a
customer's
questions
Not good at getting

newspapers, magazines,
billboard posters, radio,
cinema etc. Advertising is
intended to persuade and to
inform.
Mix element
Sales promotion
Providing incentives to
customers or to the
distribution channel to
stimulate demand for a
product.

and product positioning

helps build customer
trust

customers to make
a final purchasing
decision

Advantage
If used over the longterm, customers may
get used to the effect
Too much promotion
may damage the brand
image

Public relation
The communication of a
product, brand or business by
placing information about it in
the media without paying for
the time or media space
directly. otherwise known as
"public relations" or PR.

Often seen as more

"credible" - since the
message seems to be
coming from a third
party (e.g. magazine,
newspaper)
Cheap way of reaching
many customers - if the
publicity is achieved
through the right media
Highly interactive - lots
of communication
between the buyer and
seller
Excellent for
communicating
complex / detailed
product information and
features
Relationships can be
built up - important if
closing the sale make
take a long time

Disadvantage
If used over the
long-term,
customers may get
used to the effect
Too much
promotion may
damage the brand
image
Risk of losing
control - cannot
always control
what other people
write or say about
your product

Personal selling
Oral communication with
potential buyers of a product
with the intention of making a
sale. The personal selling may
focus initially on developing a
relationship with the potential
buyer.

Costly - employing
a sales force has
many hidden costs
in addition to
wages
Not suitable if
there are
thousands of
important buyers

Direct marketing
Direct marketing is basically
business from manufacturer
to consumer without the
involvement of middlemen,
whoever it is. This is generally
done by mailing the consumer
or contacting him directly, so
he can know about the
products. The use of media
advertisements is very limited
and whatever little use is
made includes only the
demonstration of their
products with call back
numbers.

-Direct marketing
involves direct business.
So it is cost beneficial for
consumers, as there is
no price hike due to
wholesalers or retailers.

Sometimes, direct
mailing offends the
customers and
many do not
endorse it as they
say it inhibits their
private lives.

- Marketing executives
can state certainly of the
exact response to their
products.
- The profit or loss can
be more accurately
judged.

Promotion can be loosely classified as "above the line" and "below

the line" promotion.
1.3. Above the line (ATL) Promotion
The promotional activities carried out through mass media like
television, radio, newspaper etc. is above the line promotion. This
uses advertising.
Advertising
Importance: Advertising is of great importance in our world of
competition. It is important for both seller and buyer. Even the
government cannot do without it.
First, of all, advertising introduces new products to general public.
For example, the public come to know about useful new

medicines for some diseases. We often learn about new machines

for agriculture and industry for ads.
Secondly,

advertising

introduces

different

brands

of

same

product. Advertisement tells about qualities of each brand and we

can easily select. For example there are three different brands of
cars produced by same company.
Thirdly, government can very profitably advertise its schemes and
policies. It can tell general public what it might do for good of
nation.
Fourthly, it is through advertisements that we come to know of
new service jobs. Qualified people apply for them and get
adjusted in life.
Fifthly, advertisement is a dependable and effective means of
expanding education and of bringing students to educational
institutions. Schools, colleges and universities advertise their
classes, courses, and fees and attract students for admission.

Classification
Most advertising is product advertising, designed to promote the
sale or reputation of a particular product or service that the
organization sells. It is of three types as follows:1. Informative Product Advertising: This form of advertising
tends to characterize the promotion of any new type of

product to develop an initial demand. It is usually done in the

introductory stages of the product life cycle. It was the
original approach to advertising.
2. Persuasive

Product

Advertising:

Persuasive

product

advertising is to develop demand for a particular product or

brand. It is a type of promotion used in the growth period
and, to some extent, in the maturity period of the product
life cycle.
3. Reminder-Oriented Product Advertising: The goal of this
type of advertising is to reinforce previous promotional
activity by keeping the brand name in front of the public. It is
used in the maturity period as well as throughout the
declining phase of the product life cycle.

Media planning & selection: Profiles of major advertising

media types

Media

Advantage

Limitation

Newspa

Flexibility, timeliness, good Short

per

local market coverage, high reproduction, small pass

life,

poor

acceptance and belief

TV

along audience

Mass market coverage, low High absolute cost, less

cost

per

exposure, audience selectivity

combines

sight-sound-

motion, appealing to the

senses
Direct

High audience selectivity, Junk mail image

mail

high

flexibility,

allows

personalization
Radio

Good

local

acceptance, Audio only, fragmented

high

geographic

demographic

and audiences

selectivity,

low cost
Magazin

Credibility & prestige, high No

warranty

quality reproduction, longer positioning

of

life
Outdoor

Flexibility,
exposure,

high
low

repeat Creative limitations, little

cost

and audience selectivity

high positional selectivity

Internet

High selectivity, low cost, Relatively

immediacy,
capability

interactive audience
exposure

low

impact,
control

Advantages & disadvantages of ATL

A d v a n t a g e s
D is a d v a n t a g e s
1.4. Below the line (BTL) promotion
Uses all forms other than advertising includes
Direct mail
Exhibitions
Sales promotion
Branding

 Merchandising
Packaging
Sponsorship
The terms 'below-the-line' promotion or communication, refers to
forms of non-media communication, even non-media advertising.
Below-the-line promotions are becoming increasingly important
within the communications mix of many companies, not only
those involved in FMCG products, but also for industrial goods.
Below the line sales promotion
Below the line sales promotions are short-term incentives, largely
aimed at consumers. With the increasing pressure on the
marketing team to achieve communication objectives more
efficiently in a limited budget, there has been a need to find out
more effective and cost efficient ways to communicate with the
target markets. This has led to a shift from the regular media
based advertising.
1. Price promotions
Price promotions are also commonly known
discounting". These can be done in two ways:

as"

price

(1) A discount to the normal selling price of a product, or

(2) More of the product at the normal price.
Price promotions however can also have a negative effect by
spoiling the brand reputation or just a temporary sales boost

(during the discounts) followed by an allay when the discount

would be called off.
2. Coupons
Coupons are another, very versatile, way of offering a discount.
The key objective with a coupon promotion is to maximize the
redemption rate - this is the proportion of customers actually
using the coupon.
It must be ensured when a company uses coupons that the
retailers must hold sufficient stock to avoid customer
disappointment.
Use of coupon promotions is often best for new products or
perhaps to encourage sales of existing products that are slowing
down.
3. Gift with purchase
The "gift with purchase" is a very common promotional technique.
In this scheme, the customer gets something extra along with the
normal good purchased. It works best for
-Subscription-based products (e.g. magazines)

- Consumer luxuries (e.g. perfumes)

4. Competitions and prizes
This is an important tool to increase brand awareness amongst
the target consumer. It can be used to boost up sales for
temporary period and ensure usage amongst first time users.
5. Money refunds

Here, a customer receives a money refund after submitting a

proof of purchase to the manufacturer.
6. Frequent user / loyalty incentives
Repeat purchases may be stimulated by frequent user incentives.
Perhaps the best examples of this are the many frequent flyer or
user schemes used by airlines, train companies, car hire
companies etc.
7. Point-of-sale displays
Shopping habits are changing for the people living in metropolitan
cities. People prefer big retail outlets like Big Bazaar to local
kirana stores. Most of the decisions of buying are taken by the
virtue of point-of-sale displays in these retail outlets.

Advantages & disadvantages of BTL

AD di s v a d n v taa ng tae s g e s