Chapter 1

Integrated Marketing

Communications
Click to edit Master subtitle style By

Vijay Prakash Anand

Vijay Prakash Anand

"Half the money I spend on advertising is wasted, and the problem is I do not know which half." Lord Leverhulme,
British founder of Unilever and Philanthropist

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"Unless your campaign has a big idea, it will pass like a ship in the night" David Ogilvy

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For a business not to advertise is like winking at a girl in the dark. You know what you are doing but no one else does. Stuart H. Britt
US advertising consultant

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Promotion
Promotion is the coordination of all the efforts, the company undertakes to aware and persuade the consumers to buy goods and services

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6 Ms Model for Communications Planning

1.

2. 3.

Market Mission Message Media Money Measurement

STRATEGY

1. 2. 3.

IMPLEMENTATION

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Communication Process
Com unication Ve m hicle s
Wb e Addre ssable / Customise d Radio Ne spape w rs Magazine Te vision le Mass Broadcast One W ay Me ssage Tw W o ay W time lag in ith re sponse Tw W o ay Instant re sponse Dire ct E-mail S spe ale rson Te m le arke ting

Dire Mail ct Catalogue Infom rcials e

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Marketing Mix
Develop a good product - Product Attractive Pricing Price Accessibility Place Communicate Effectively Promotion Cohesive Marketing Strategy (Effective Marketing Communications)
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Reach Target Markets

IM C

Build Brand Equity

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Brand Equity - Intangible asset of added value /goodwill

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Promotion
Advertising Sales Promotion Personal Selling Direct Marketing
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Public Relations

Internet Marketing

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Evolution

1980s
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Mass-Media
Direct Marketing

Advertising
Personal Selling

Public Relations

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Evolution

Integrated

IMC

Marketing

Communications
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Marketing Revolution

Traditional media advertising too expensive and less cost effective; Movement to lower cost, more targeted communications tools

Shift in marketplace power from manufacturers to retailers

Database marketing Greater accountability from advertising agencies Internet

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Advantage IMC

Synergy among promotional tools Avoid duplication Develop more efficient and effective marketing communications program
One of the easiest way to maximize the return on investment in marketing and promotion

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Advantage IMC

Adapting to a changing environment particularly with respect to consumers, technology and media

Satellite Channels Internet E-Commerce Fragmented media

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Advantage IMC

Decline in the audience size for many media

Consumers less responsive to traditional advertising

Consumers tired of being bombarded by sales messages

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American Association of Advertising Agencies

IMC
recognises the added value of a comprehensive plan that evaluates the strategic roles of Advertising, Direct Response, Sales Promotion and Public Relations and combine those principles to provide clarity, consistency and maximum communications impact
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IMC
Don Schultz All Sources of brand and company contact that a customer or prospect has with a product or service
Big Picture approach to planning marketing and promotion programmes and coordinating the various communication functions.

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Advertisements Direct Marketing

Websites

IMC

Publicity

Package Design

Type of Stores
Sales Promotions 2020

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Promotion
Advertising Sales Promotion Personal Selling Direct Marketing
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Public Relations

Internet Marketing

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Advertising
Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor

Print & Broadcast Ads, Directories, Billboards, Brochure & Booklets, Audio Visual Material, Display Signs, POP Display
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Advertising

Cost effective method for communicating with large audiences

Can be used to create brand images; Ability to strike a responsive chord

Attracts consumer attention and can help generate sales

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Advertising Objectives

To generate immediate response or action from the consumer

To develop awareness or a positive image for its product or service over a longer period

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Advertising To Consumer Markets

National Advertising

to inform or remind; to create or reinforce its image

Retail / Local Advertising Primary Vs. Selective Demand Advertising

Gold, Diamond, Steel, Milk, Egg

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Advertising to Business & Professional Markets

Business to Business Advertising

Machinery, Office Supplies,Computers

Professional Advertising

Doctors, Lawyers, Engineers, Professors

Trade Advertising

Wholesalers, Distributors and Retailers

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Indian Advertising Industry

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AD BUDGETS Ad spend in Rs Cr Ad spend of % of sales 2003-04 2004-05 7.51 8.42 4.15 2.90 5.01 5.44 0.96 1.01 14.31 14.01 2.13 1.99 2.71 2.50 15.74 16.21 6.36 0.76 0.43 12.30 7.96 2828 14.23 16.43 5.44 1.24 0.17 11.78 6.37

Hind. Lever ITC Ranbaxy Lab Tata Motors Dabur Hero Honda Bajaj Auto Colgate Palmolive Reckitt Benck Nestle ICICI Bank Reliance Glaxo Smith Britannia Prakash Anand Vijay Industries

2003-04 759.09 265.72 182.26 123.60 154.95 124.46 129.32 147.65 102.17 136.12 68.68 220.64 97.92 114.66

2004-05 835.98 220.53 201.72 172.37 171.79 147.48 143.87 136.84 124.41 121.26 116.26 114.56 101.45 101.09

Top 10 Advertising Agencies in India Economic Times - Band Equity Agency Reckoner 2010 Website Ranking Company Name
1 2 3 4 5 6 7 8 9 10 Ogilvy and Mather James Walter Thompson Lowe Lintas Mc Cann Erickson Mudra India Leo Burnett DDB Mudra Draft FCB Ulka Redifussion YR Contract www.ogilvy.com www.jwt.com www.lowelintas.in www.mccannworldgroup.co m www.mudra.com www.leoburnett.com www.mudra.com www.draftfcb.com www.rediffusionyr.com www.icontract.in 2929

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Direct Marketing
Organisations communicate directly with target customers to generate a response and/or a transaction

Direct Mail, Mail Order, Database Marketing, Telemarketing, Catalogues, Electronic Shopping,TV Shopping, E mail and direct response ads through Direct Mail, the internet and various broadcast and print media
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Direct Marketing
Amway Dell Aquaguard Tupperware Avon Teleshoppe
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Interactive/Internet Marketing
Interactive Media through Internet, CD-ROMs, Kiosks and Interactive TV; allow for a back and forth flow of information, whereby users can participate in and modify the form and content of the info they receive in real time
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Interactive/Internet Marketing
Internet is a promotional medium

Internet is a medium that can be used to execute all the elements of the promotional mix

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Sales Promotion
A variety of short term incentives to encourage trial or purchase of a product or service
Trade Oriented
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Consumer Oriented
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Sales Promotion
Consumer-oriented sales promotion
Targeted to the ultimate user

Contests, Gifts, Fairs & Trade Shows, Demos, Discounts, Low interest financing, Lotteries

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Sales Promotion
Trade-oriented sales promotion
Targeted toward marketing intermediaries

Promotional and Merchandising Allowances, Price Deals, Sales Contests

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Publicity refers to nonpersonal communications regarding an organisation, product, service or idea not directly paid for or run under identified sponsorship

Publicity / Public Relations

News story, Editorial or announcement about an organisation and/or its product or services through news releases, press conferences, feature article, photos, films and videos
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Publicity / Public Relations

Consumers less skeptical toward favourable info

Low Cost Not always under the control of the organisation and is sometimes unfavourable

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Public Relations
The Management function which evaluates public attitudes, identifies the policies and procedures of an individual or organisation with the public interest and executes a programme of action to earn public understanding and acceptance
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Public Relations
A variety of programmes systematically designed and distributed to promote or protect a companys image or products
Broader objective than publicity

Press Kits, Seminars, Speeches, Publications, Lobbying, Comopany Magazine, Events, Sponsorships,
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Donations, Annual Reports

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Personal Selling
Face to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders
More immediate and precise feedback

Sales presentation, Sales meeting, Fairs and Trade Shows,

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Promotional Management
Coordinating the promotional mix elements with balancing of advantages and disadvantages of each, to develop a controlled, integrated programme of effective marketing communications
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Factors Influencing Promotional Management

Type of product Target market Buyers decision process Stage of the product life cycle Channels of distribution
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Thank You

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