Integrated Marketing Communications

Module 1

Topics to be covered

Role of IMC in marketing process, IMC planning model, Marketing and promotion process model. Communication process, steps involved in developing IMC programme, Effectiveness of marketing communications Advertising : Purpose, Role, Functions, Types, Advertising Vs Marketing Mix, Advertising appeal in various stages of PLC.

Definition: Integrated Marketing communications is the coordination and integration of all marketing communication tools, avenues and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost. This integration affects all of a firms business to business, marketing channel, customer focused internally directed communications.

The IMC approach seeks to have all of a companys marketing and promotional activities project a consistent, unified image to the marketplace. It calls for a centralized messaging function so that everything a company says and does communicates a common theme and positioning. For eg., Mont Blanc uses classic design and a distinctive brand name as well as high price to position its watches, pens as high-quality, high status products. This upscale image is enhanced by the companys strategy of distributing its products only through boutiques, jewelry stores and other exclusive shops including its own stores.

Elements of IMC
Integrated Marketing communication

Advertising Sales Promotio n

Publicity / Public Relations

Personal selling

Direct Marketing

Internet ( Latest entrant)

EXAMPLES:Direct marketing example:include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, targeted television commercials, response-generating newspaper/magazine advertisements, and outdoor advertising. Direct marketing via television (commonly referred to as DRTV)- 30-second or 60second commercials that ask viewers for an immediate response (typically to call a phone number on screen or go to a website) Sales promotion: Examples include contests, coupons,freebies, point of purchase displays, premiums, prizes, product samples, sweepstakes and rebatesSales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions. Public relation: Print Campaigns, Radio and Television Campaigns, Online Campaigns. Personal selling: Some of the examples of personal selling are retail selling, field selling, telemarketing, inside selling. A practical example is when a peddler sells household goods on door to door. 12 million people in the United States are engaged in personal selling.

Example:Advertising: A McDonald's billboard or televesion advertisement.

Personal Selling: You own a vacuum shop and personally sell a vacuum to a customer
Sales Promotion: The Coke bottle top promotion is a good example where they had that number you hae to go enter into the Web site to see if you win. Buy One, Get One; buy one @ full price, second half off, etc. gimmick (trick) are also sales promotions. Public Relations: Your company donates $xxxx to a charity adn a local news station picks up, that's PR. Gives your company good branding without "paying" for it (minus the donation or volunteer hours) . Sakthi masala 23% of total employees are physically challenged (uplifting the disabled by offering employment opportunities). Direct Marketing: Sending a credit card offer to someone in the mail. (Junk mail/telemarketing is direct marketing

Role of IMC in Marketing process

Marketing strategies influence the role of promotion and promotional decisions must be coordinated with other areas of the marketing mix. The marketing process begins with the development of a marketing strategy and analysis in which the company decides the product or service areas and particular markets where it wants to compete. The company must then coordinate the various elements of the marketing mix into a cohesive marketing program that will reach the target market effectively.

 A firms promotion program is directed not only to the final buyer but also to the channel or trade members that distribute its product to the ultimate consumer. These channel members must be convinced there is a demand for the companys products so they will carry them and will aggressively merchandise and promote them to consumers. Promotions play an important role in the marketing program for building and maintaining demand not only among final consumers but among the trade as well.

Growing Importance of IMC

A shifting of marketing dollars from media advertising to other forms of promotion, particularly consumer and trade oriented sales promotions A movement away from relying on advertising-focused approaches, which emphasize mass media such as network television and national magazines to solve communication problems. A shift in marketplace power from manufacturers to retailers. The rapid growth and development of database marketing. Demands for greater accountability from advertising agencies and changes in the way agencies are compensated. The rapid growth of the Internet, which is changing the very nature of how companies do business.

IMC Planning Model

Those involved with the IMC program must decide on the role and function of the specific elements of the promotional mix, develop strategies for each element, determine how they will be integrated, plan for their implementation and consider how to evaluate the results achieved and make any necessary adjustments.

 Review of the Marketing Plan Before developing a promotional plan, marketers must understand where the company has been, its current position in the market, where it intends to go and how it plans to get there. Marketing plans include five basic elements: 1.A detailed situation analysis that consists of an internal marketing audit and review and an external analysis of the market competition and environmental factors. 2.Specific marketing objectives that provide direction, a time frame for marketing activities and a mechanism for measuring performance.

3. A marketing strategy and program that include selection of target market and decisions and plans for the four elements of the marketing mix. 4. A program for implementing the marketing strategy, including determining specific tasks to be performed and responsibilities. 5. A process for monitoring and evaluating performance and providing feedback so that proper control can be maintained and any necessary changes can be made in the overall marketing strategy or tactics.

 Promotional Program Situation Analysis Internal Analysis The internal analysis assesses relevant areas involving the product/service offering and the firm itself. The capabilities of the firm and its ability to develop and implement a successful promotional program, the organization of the promotional department and the successes and failures of past programs should be reviewed. The analysis should study the relative advantages and disadvantages of performing the promotional functions in-house as opposed to hiring an external agency.

External Analysis The external analysis focuses on factors such as characteristics of the firms customers, market segments, positioning strategies and competitors. An important part of the external analysis is a detailed consideration of customers characteristics and buying patterns, their decision processes and factors influencing their purchase decisions.
Analysis of the Communication Process This stage of the promotional planning process examines how the company can effectively communicate with consumers in its target markets. The promotional planner must think about the process consumers will go through in responding to marketing communications. The promotional planner should recognize the different effects various types of advertising messages might have on consumers and whether they are appropriate for the product or brand.

 Budget Determination Two basic questions are asked at this point: What will the promotional program cost? How will the money be allocated? In reality, promotional budgets are often determined using a more simplistic approach, such as how much money is available or a percentage of a companys or brands sales revenue.

 Developing the Integrated Marketing Communications Program At this stage of the planning process, decisions have to be made regarding the role and importance of each element and their coordination with one another. Decisions must be made and activities performed to implement the promotional programs. Procedures must be developed for evaluating performance and making any necessary changes. For eg. Two important aspects of the advertising program are development of the message (creative strategy) and the media strategy.

Integrate and Implement Marketing Communications Strategies

Integrate promotional mix strategies. Create and produce ads. Purchase media time and space Design and implement direct marketing programs Design and implement sales promotion program Design and implement public relations/ publicity programs Design and implement interactive/ internet marketing programs

 Monitoring, Evaluation and Control The final stage of the IMC planning process is monitoring, evaluating and controlling the promotional program. It is important to determine how well the IMC program is meeting communication objectives and helping the firm accomplish its overall marketing goals and objectives. The IMC planner wants to know not only how well the promotional program is doing but also why.

Communication Process
Senders Field of Experience Receivers Field of Experience

Sender/Sourc e

Encoding

Channe l Messag Noise e

Decoding

Receive r

Feedback

Response

Communication Process
Two elements represent the major participants in the communication process, the sender and the receiver. Another two are the major communication tools, message and channel. Four others are the major communication functions and processes: encoding, decoding, response and feedback. The last element, noise, refers to any extraneous factors in the system that can interfere with the process and work against effective communication.

 Source Encoding The sender or source of a communication is the person or organization that has information to share with another person or group of people. The source may be an individual(say a salesperson, or hired spokesperson, such as a celebrity, who appears in a companys advertisements) or a nonpersonal entity (such as the corporation or organization itself). The communication process begins when the source selects words, symbols, pictures and the like to represent the message that will be delivered to the receiver. This process, known as encoding, involves putting thoughts, ideas or information into a symbolic form.,

 Message The encoding process leads to development of a message that contains the information or meaning the source hopes to convey. The message may be verbal or nonverbal, oral or written, or symbolic. For many products, it is not the actual words of the message that determine its communication effectiveness but rather the impression or image the ad creates. Channel The channel is the method by which the communication travels from the source or sender to the receiver. Personal channels of communication are direct interpersonal contact with target individuals or groups. Salespeople serve as personal channels of communication when they deliver their message to a buyer or potential customer. Nonpersonal channels of communication are those that carry a message without interpersonal contact between sender and receiver. Generally referred to as the mass media communications, since the message is sent to many individuals at one time

 Receiver/Decoding The receiver is the person with whom the sender shares thoughts or information. Generally, receivers are the consumers in the target market or audience who read, hear and/or see the marketers message and decode it. Decoding is the process of transforming the senders message back into thought. This process is heavily influenced by the receivers frame of reference or field of experience.

 Noise Throughout the communication process, the message is subject to extraneous factors that can distort or interfere with its reception. This unplanned distortion or interference is known as noise. Errors or problems that occur in the encoding of the message, distortion in a radio or television signal, or distractions at the point of reception are examples of noise. Response/ Feedback The receivers set of reactions after seeing, hearing or reading the message is known as response. Receivers responses can range from non observable actions such as storing information in memory to immediate action such as dialing a toll-free number to order a product advertised on television. Marketers are very interested in feedback, that part of the receivers response that is communicated back to the sender.

Advertising
Advertising is a paid form of non-personal communication. Advertising promotes ideas, goods and services of an identified sponsors. Advertising is a paid form of communication. It is paid, because the advertiser has purchased time and space. It is non-personal in nature, because it is not directed towards an individual i.e., no face to face presentation. Purpose of advertising is to promote ideas about products and services. Advertising is done to create interest in goods and services. Advertising is issued by an identified sponsoradvertising is done by the source.

Types of Advertising
Consumer Advertising Most of the consumer products company encourage product advertising. Marketers of cosmetics, detergents, soaps are included here. Eg. Lux
Service Advertising Service sector encompass such services as medical services, financial services, education services etc. In service advertising, the service provider sells his expertise. Eg. Incredible India

 Industrial Advertising The number of industrial advertising as percentage of sales is much less compared to consumer product advertising. The demand being derived in nature, the advertisement may lose the intensity of the product. The advertisement copy is usually filled with figures and facts. Eg. Trade journals act as media for industrial advertising. NECC for eggs, NDFC for milk.

Surrogate Advertising In this type of advertisement, one product is substituted for another example- Alcohol advertisement is banned, but mineral water or apple juice, or soda is being substituted for advertisement. Eg. Kingfisher

 Trade Advertising Advertising targeted to marketing channel members such as wholesalers, distributors and retailers. The goal is to encourage channel members to stock, promote and resell the manufacturers branded products to their customers.
Non-profit Advertising Here idea selling is done instead of product or service. Eg. Anti smoke etc.

Purpose of Advertising
The purpose of advertising include: 1. Primary and Selective demand stimulation 2. Direct and Delayed response advertising 3. Corporate Advertising Primary Demand Stimulation An advertiser is seeking to create demand for a new product category in general. The purpose of this type of advertising is to educate potential buyers about the fundamental values of an entire product category rather than to emphasize the values of a specific brand within the product category.

 Selective Demand Stimulation An advertiser is seeking to stimulate demand for a particular companys brand. The purpose of selective demand stimulation advertising is to point out a brands unique benefits compared to the competition. Direct response advertising Asks the receiver of the message to act immediately. An ad that suggests that you call this toll free number or mail your Rs. 20 before midnight tonight is an example of direct response advertising.

 Delayed Response Advertising Relies on imagery and message themes that emphasize the benefits and satisfying characteristics of a brand. It attempts to develop recognition and approval of a brand over time. It attempts to create brand awareness, reinforce the benefits of using a brand, develop a general liking for the brand and create an image for a brand.
Corporate Advertising- It is not designed to promote a specific brand, but rather functions to establish a favorable attitude toward the company as a whole. Prominent users of corporate advertising are Xerox, HP, IBM, and Apple which have long-established corporate campaigns aimed at generating favorable public opinion toward the corporation and its products.

Functions of Advertising
Social Function Advertisement helps to solve social causes, such as fighting diseases like cancer, polio drops etc. Psychological Function Appeals to psychological motives of human beings such as soft drink company advertising to meet the psychological need of the customer namely thirst eg. Thanda matlab Coca Cola. Economic Function Increase sales in an effective manner. Establishes a rapport with the customer.

Role of Advertising
Awareness To make the customers aware of the particular product and the objective is to build primary demand. Persuasion (Opinion) It becomes important in the competitive stage and the objective is to build selective demand for a particular brand. Reinforcement (Strengthening) Seeks to assure current purchasers that they have made the right choice. Reminder It is important with mature products and the objective is to remind people to purchase the particular brand.

Advertising in the various stages of PLC

Life cycle model of advertising has three stages: Pioneering stage Advertising mode in the pioneering stage must impress that this is an improved product. Advertising in pioneering stage should not just present the product, it must suggest either New usage or Habit change. In this stage, the pioneer advertiser spends money to educate the public regarding the advantage of new product. It is done: 1. To educate consumers about the product/service. 2. To convey the message that the new product meets the need. 3. Some unmet needs get fulfilled.

Product Life cycle

Persuasive and Awarenes Comparative Advertising s Advertisin g Reminder and Reinforceme nt Advertising

Sales & Profit

Time

 Competitive stage When pioneering product gets customer acceptance, more people will enter leading to acute competition. When product reaches the competitive stage, the advertising done is called comparative advertising. The purpose of comparative advertising is to communicate the product difference to the customer. It shows the unique product features.

 Retentive Stage This is a maturity stage of the product. Reinforcement and Reminder advertising will find useful at this stage. The main objective of advertisement is to hold on the customers. Eg. Pepsi/Coke. There is a tendency among the people to forget the product, if not advertised. Therefore, the advertisers try to retain the customer by keeping the brand in front of the customer. The advertisement just reminds the customer that the brand exists. This type of advertisement banks on high visual content and name of the brand is emphasized. Reinforcement advertising is to reinforce in the minds of the customers that the decision they have taken to purchase the product is absolutely correct by showing the pictures and testimonials of satisfied customers.

Marketing and Promotions Process Model

Opportunity Analysis Identifying Markets Product Decisions Promotional Decisions Competitive Analysis Market Segmentation Target Marketing Selecting a Target Market Distribution Decisions Pricing Decisions Advertising Direct Marketing Interactive Marketing Sales Promotion Publicity and Public Relations Personal Selling Promotion To Trade Promotion to Final Buyer

Ultimate Consumer Consumers Businesses

Positioning Through Marketing Strategies Resellers

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing and Promotion Process Model

Marketing Strategy and Analysis Any organization that wants to exchange its products or services in the marketplace successfully should have a strategic marketing plan to guide the allocation of its resources. A strategic marketing plan usually evolves from an organizations overall corporate strategy and serves as a guide for specific marketing programs and policies. Opportunity Analysis Market opportunities are areas where there are favorable demand trends, where the company believes customer needs and opportunities are not being satisfied and where it can compete effectively. For eg. Looking at the rise in disposable income of the Indian population, and change in the lifestyle pattern, the foreign automobile manufacturers have entered the Indian market.

 Competitive Analysis Competition may range from direct brand competition to more indirect forms of competition , such as product substitutes. For eg. As a result of shrinking cola sales, both Coke and Pepsi planned to launch more than two dozen new products in 2005. Besides competing head to head in the soda market with products like Coke, Diet Coke, Diet Coke with Lemon and more versus Pepsi, Diet Pepsi, Pepsi Twist and Pepsi Blue, the companies face competition from other drinks including bottled water, juices and teas. Companies also search for a competitive advantage, something special a firm does or has that gives it an edge over competitors. Eg. Nike shoes, Mc Donalds etc.

 Target Market Selection The target market becomes the focus of the firms marketing effort and goals and objectives are set according to where the company wants to be and what it hopes to accomplish in this market.
The Target Marketing Process
Identifyin g the markets Determining the market segmentatio n Selecting the market to target Positionin g through marketing strategy

 Identifying Markets Target market identification isolates consumers with similar lifestyles, needs and the like and increases our knowledge of their specific requirements. For eg. Years ago, beer was just beer with little differentiation, many local distributors with few truly national brands. The industry began consolidating, an to compete more effectively, brewers began to look at different tastes, lifestyles and so on of beer drinkers and used this information in their marketing strategies. Beer market has become quite segmented, offering superpremiums, premiums, populars, imports, lights, dry beers, ice beers, low carbohydrate beers and so on.

 Market Segmentation Involves five distinct steps: 1.Finding ways to group consumers according to their needs. 2.Finding ways to group the marketing actionsusually the products offered-available to the organization. 3.Developing a market product grid to relate the market segments to the firms products or actions. 4.Selecting the target segments toward which the firm directs its marketing actions. 5.Taking marketing actions to reach target segments.

Bases for Segmentation

Geographic Segmentation North, South, East and West.

Demographic Segmentation Based on age, sex, family size, education, income and social class. Eg. Village, a website targeting women.
Psychographic Segmentation Value and lifestyle of the customer. For eg. Target market for Hummer as highly adventurist, entrepreneurial and free spirited achievers (strong, energetic, brave) . Behavioristic Segmentation Usage, loyalties or buying responses to a product. Eg. Apple has successfully extended the appeal of its new computers to adopters of the iPod. Benefit Segmentation Basis of attributes sought in a product that provide specific benefits. Eg. In the toothpaste market, some consumers want a product with fluoride (Crest, Colgate), others prefer one that freshens the breath (CloseUp, Aqua Fresh), or for people with sensitive teeth (Sensodyne).

 Selecting a Target Market 1. Undifferentiated marketing involves ignoring segment differences and offering just one product or service to the entire market (one marketing strategy for everybody). For eg. When Henry Ford brought out the first assembly-line automobile, all potential customers were offered the same basic product: a black Ford. 2. Differentiated marketing involves marketing in a number of segments, developing separate marketing strategies for each.

 Market Positioning Positioning by product attributes and benefits When Apple first introduced its computers, the key benefit stressed was ease of use-an effective strategy, given the complexity of computers in the market at that time. Positioning by Price/Quality Bajaj in auto sector and Nokia use this strategy successful. Positioning by Use or Application Arm & Hammer baking soda has been promoted for everything from baking to relieving heartburn to eliminating odors in carpets and refrigerators. Positioning by Product Class Manufacturers of music CDs must compete with MP3 players, many margarines position themselves against butter. Positioning by product user Diet Coke has been positioned for youth population.

Advertising and Marketing Mix

The elements of marketing mix are: Product Price Place Promotion Advertisement is a communication tool in marketing: advertising helps to move the product or service to the end user. The extent to which the advertisement is used as a communication tool depends upon the nature of business.

 Advertising and product decisions A product is not just a physical object, it is a bundle of benefits or values that satisfies the needs of consumers. Product symbolism refers to what a product or brand means to consumers and what they experience in purchasing and using it. For eg. Designer clothing like Versace and Gucci are often purchased on the basis of its symbolic meaning and image. Branding Choosing a brand name is important from promotional perspective because brand names communicate attributes and meaning. Eg. Mr. Muscle. Brand equity Allows a brand to earn greater sales volume and higher margins than it could without the name, providing the company with a competitive advantage. Eg. Nike, Apple.

Packaging provides functional benefits such as economy, protection and storage. Role has changed because of self-service emphasis of many stores and more and more buying decisions are made at the point of purchase. Create a distinctive brand image and identity in the minds of the customers.
Advertising and Price decisions Price refers to what the customer must give up to purchase a product or service. From an IMC perspective, the price must be consistent with the perceptions of the product, as well as the communications strategy. Higher prices will communicate a higher product quality, while lower prices reflect bargain or value perceptions. Companies with high quality and high advertising levels obtained the highest prices.

 Advertising and Distribution Channel Decisions A firm can have an excellent product at a great price, but it will be of little value unless it is available where the customer wants it, when the customer wants it and with the proper support and service. Channel elements contribute to communication for eg. Grocery store displays, point-of-purchase merchandising and shelf footage. The distribution channel in a well integrated marketing program serves as a form of reminder advertising. A company can choose not to use any channel intermediaries but, rather, to sell to its customers through direct channels eg, Tupperware, Avon, etc.

 Developing Promotional Strategies: Push or Pull Programs designed to persuade the trade to stock merchandise and promote a manufacturers products are part of a promotional push strategy. The goal of this strategy is to push the product through the channels of distribution by aggressively selling and promoting the item to the resellers, or trade. Company sales representatives call on resellers to explain the product, discuss the firms plans for building demand among ultimate consumers and describe special programs being offered to the trade such as introductory discounts, promotional allowance, trade advertising and cooperative ad programs. In promotional pull strategy, companies spend money on advertising and sales promotion efforts directed towards the ultimate consumer. The goal of a pull strategy is to create demand among consumers and encourage them to request the product from the retailer.

Steps of Developing IMC Program

Creation of Central Theme for IMC Campaign Creative Strategic Planning Development

Creative Strategic Implementation and Evaluation

Media Planning and Strategy Proposition of various mediums Evaluation of different media Effectiveness Selection of Optimal Media

Developing Public Relations and Internet as a Promotional Tool

Deploying Personal Selling as a Promotiona l Tool

Deploymen t of Sales Promotion Techniques

Deployment of direct Marketing in IMC Program

Effectiveness of Marketing Communications

5% Repurchase/ Regular Use 25% Preference

40% Liking

70% Knowledge

90% Awareness

1. Create awareness among 90% of target audience Use repetitive advertising in newspapers, magazines, TV and radio programs. Simple message. 2. Create interest in the brand among 70%of target audience Communicate information about the features and benefits of the brand-i.e. that it contains no soap and improves the texture of the hair. Use more copy in ads to convey benefits. 3. Create positive feelings about the brand among 40% and preference among 25% of the target audience Create favorable attitudes by conveying information, promotions, sampling etc. Refer consumer to website for more information, beauty tips etc.

4. Obtain trial among 20% of the target audience Use sampling and centsoff coupons along with advertising and promotions. Offer coupons through website. 5. Develop and maintain regular use among 5% of the target audience Use continued-reinforcement advertising, fewer coupons and promotions. Increase communications efforts to professionals.

Communication Effect
All potential buyers experience the effects prior to taking the purchase decisions. 1. Category need This refers to buyers perception of wanting a product or a service. Eg. Suppose you feel that the car owned by you is getting older and needs frequent attention. An advertisement released by Maruti for Swift at this stage would encourage you to look at the advertisement. The advertisement at this stage reminds of the perceived need for a new car and acts as the stimulant. 2. Brand Awareness Marketer and advertiser seldom(rarely) want you to buy just any brand of new car. They want you to buy only Swift. You might have heard about Swift before. The advertisement of Swift will reinforce or strengthen the awareness. Advertising and attention getting sales promotion offers can create wider brand awareness quickly.

 Brand Attitude From an intention to purchase to actual purchase, the purchase must develop a positive attitude towards the brand. A single advertisement from Maruti is unlikely to create a sufficiently favourable attitude to active buying Swift. Most people consult friends for advice or go through auto magazine or call up the dealer for performace. Advertising can aid in creating and changing brand attitude. Brand Purchase Intention Promotion plays an important role in stimulating brand purchase.Eg. Suppose the new car(Swift) advertisement is accompanied by rebate or discount, this will speed up the intention to buy the brand.

 Purchase Decision Purchase facilitation is dependent on other factors such as marketing mix. In the case of Swift car advertisement, factors that need to be satisfied are: 1) Car looks good and test-drive satisfactory. 2) Payment and price are affordable. 3) Showroom visit satisfactory. 4) Promotion aspect namely personal selling in the form of information from salesman was excellent.

Communication Effect The Response Process

The most important aspect of developing effective communication programs involves understanding the response process the receiver may go through in moving toward a specific behavior and how the promotional efforts of the marketer influence consumer responses.

Models of the Response Process

Stages AIDA Model Hierarchy of Effects Model

Awareness
Cognitive Stage Attention Knowledge Liking Affective Stage Interest Preference Desire Conviction Behavior Stage

Action

Purchase

AIDA Model
The advertiser should start by winning the attention of prospective buyers, then create interest in the product, inspire desire to buy and make the buyer act favorably to purchase.

Hierarchy of Effects Model

Awareness The communicators task is to build awareness about the brand, perhaps just name recognition. This task can be accomplished with simple messages repeating the products name.

Knowledge The communicators task is then to give knowledge about the product, i.e., about the features, benefits and characteristics of the product.
Liking The audience should look favorably on product. If they look unfavorably on product, the communicator has to find out why and develop a communication campaign to shore up favorable feelings.

 Preference The target audience might like the product but not prefer it to others. In this case, the communicator must try to build consumer preference. The communicator will promote the products quality, value, performance and other features. Preference can be created by promoting

the comparative advantages of the new product or service over its alternatives
Conviction (passion) A target audience might prefer a particular product but not develop a conviction about buying it. The communicators job is to build conviction among interested consumers. Here, the role of communication is to convince

the target audience that they claimed benefits of the product or service are both real and sufficiently great to warrant a change in their behaviour.

Purchase Consumers may wait for more information or plan to act later. The communicator must lead these consumers to take the final step. Actions might include offering the product at a low price, offering a premium or letting consumers try it on a limited basis. The original hierarchy of effects model had purchase as its final step but here the term adoption is preferred because it emphasises that the ultimate objective of promotion is to encourage a long term change in behaviour and not a one-off trial or purchase. To facilitate the initial purchase or trail of the product or service the promotional campaign might centre around a low introductory price or enable potential customers to try it on a limited basis

Advantages of advertising
Advertiser controls the message

Cost effective way to communicate with

large audiences Effective way to create brand images and symbolic appeals Often can be effective way to strike

responsive chord with consumers

Disadvantages of advertising

High costs of producing and running ads

Credibility problems and consumer skepticism

Clutter

Difficulty in determining effectiveness

Interactive/Internet Marketing
Use of the Internet as an IMC Tool
As an advertising medium to inform, educate and persuade customers As a direct sales tool To obtain customer database information To communicate and interact with buyers To provide customer service and support To build and maintain customer relationships As a tool for implementing sales promotion As a tool for implementing publicity/public relations programs