Integrated Marketing

Communications
Module 1
 Module 1 –syllabus
• 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
• Purpose, Role, Functions, Types, Advertising
Vs Marketing mix, Advertising appeal in
various stages of PLC
Marketing Mix

IMC
Role of Advertising and Promotion
• Inform customers of a product or service
• Convince them of its ability to satisfy their
wants or needs
• Help develop and sustain relationships
 IMC -Defined
• A concept of marketing communications
planning that recognizes the added value of a
comprehensive plan that evaluates the
strategic roles of a variety of communication
disciplines and combines these disciplines to
provide clarity, consistency and maximum
communications impact
Integrated Marketing Communications
• A marketing communications planning concept that recognizes
the value of a comprehensive plan.
• A plan that evaluates the strategic roles of several
communications disciplines:
• Media advertising
• Direct marketing
• Interactive/internet marketing
• Sales promotion
• Publicity/Public relations
• Combines the disciplines to provide:
• Clarity
• Consistency
• Maximum communications impact
 Reasons For Growing Importance of IMC
• A shifting of marketing expenditures from traditional media
advertising to other forms of promotion as well as
nontraditional media
• The rapid growth of the internet and social media that is
changing the nature of how companies do business and the
ways they communicate and interact with consumers
• A shift in marketplace power from manufacturers to
retailers
• The growth and development of database marketing
• Demands for greater advertising agencies and changes in
the way agencies and other marketing communication
firms are compensated accountability
• Rapid growth of the Internet
• Increasing importance of branding
 Communication Levels
• Corporate Level
– Messages sent by a company’s overall business
practices and philosophies such as mission, labor
practices, philanthropies, culture and other processes
• Marketing Level
– Messages sent by or inferred from by various aspects
of marketing mix such as product performance,
design, appearance, pricing and distribution
• Marketing Communication Level
– Strategic and executional consistency among all forms
of marketing communication
 The promotional Mix: IMC Tools

The promotional Mix

Interactive/Internet
Advertising Direct Marketing
Marketing

Publicity/Public
Sales promotion Personal Selling
Relations
Integrated Marketing Communications Planning Model
 Marketing Plan
• A document that describes the overall marketing
strategy and programs developed for an organisation, a
particular product line or a brand.
• Include:
1. A detailed situation analysis that consist of an internal
marketing audit and review and external analysis of the market
competition and environment factors
2. Specific marketing objectives that provide direction, a time
frame form marketing activities, and a mechanism for
measuring performance
3. A marketing strategy and program that includes selection of
target market(s) and decision and plans for the four elements
of marketing mix elements
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
 Review of Marketing Plan
• Examine overall marketing plan and objectives
• Role of advertising and promotion
• Competitive analysis
• Assess environmental influences
Analysis of Promotional Program Situation

• Internal analysis
– Promotional department organisation
– Firm’s ability to implement promotional program
– Agency evaluation and selection
– Review of previous program results
• External analysis
– Consumer behaviour analysis
– Market segmentation and target marketing
– Market positioning
Analysis of Communication Process
• Analyse receivers response processes
• Analyse source, message, channel factors
• Establish communications goals and objectives
 Analysis of the Communication Process

• Marketing objectives
– Refer to what is to be accomplished by the overall
marketing program
– Often stated in terms of sales, market share, or
profitability
• Communication objectives
– Refer to what the firm seeks to accomplish with its
promotional program
– Often stated in terms of the nature of the message to
be communicated or what specific communication
effects are to be achieved
 Key Communication Objectives
• Creating awareness or knowledge about a
product and its attributes or benefits
• Creating an brand, store image
• Developing favourable attitudes, preferences
or purchase intentions
 Budget determination
• Set tentative marketing communications
budget
• Allocate tentative budget
 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 distribute sales promotion materials
• Design and implement public relations/publicity
programs
• Design and implement interactive/internet
marketing programs
 Monitor, Evaluate and Control Integrated
Marketing Communications Program
• Evaluate promotional program
results/effectiveness
• Take measures to control and adjust
promotional strategies
THE ROLE OF IMC IN THE
MARKETING PROCESS
Marketing and Promotions Process Model
 Marketing Strategy and Analysis
• Strategic Marketing Plan
– Guide the allocation of its resources
– Opportunity analysis
• Alternate market opportunities for existing product lines in
current or new markets, new products for current markets
or new products for new markets
– Competitive analysis
• Analysing the competition to be faced in the market place
• Range from direct brand competition to more indirect forms
of competition such as product substitutes
– Target Market selection
• Becomes the focus of the firm’s marketing effort, and goals
and objectives
 The Target Marketing Process

Identify markets with unfulfilled needs

Determine market segmentation

Select a market to target

Position through marketing strategies

 Segmentation Process
1. Finding ways to group consumers according to their
needs
2. Finding ways to group marketing actions, usually
the products offered, available to the organization
3. Developing a market to relate the market segments
to the firm’s products and actions
4. Selecting the product segments towards which the
firm directs its marketing actions
5. Taking marketing actions to reach target segments
 Bases for Segmentation
• Geographic Segmentation
– Country, State, Region
• Demographic Segmentation
– Age, sex, income, education, occupation, social class
• Psychographic Segmentation
– VALS (Values and Lifestyles)
– Personality traits
• Behavioristic Segmentation
– Usage, loyalties or buying responses, occasions
• Benefit Segmentation
– Products that satisfy specific needs or wants
 Selecting a Target Market
• Determining How Many Segments To Enter
• Undifferentiated Marketing
• Involves ignoring segment differences and offering one
product or service to the entire market
• Differentiated marketing
• Involves marketing in a number of segments,
developing separate marketing strategies for each
• Concentrated Marketing
• Used when the firm selects one segment and attempts
top capture a large share of this market
Determining Which Segments Offer Potential

• Determine sales potential of the segment

• Determine opportunities for growth of the
market segment
• Analyze the competition in the segment
• Analyze the company’s ability to compete in
the market segment
 Positioning
• Defined as the art and science of fitting the
product or service to one or more segments of
the broad market in such a way as to set it
meaningfully apart from competition
Approaches to Positioning/Positioning Strategies

By Attributes and Benefits

By Price/Quality

By Use/Application

By Product Category

By Product Users

By Competitors

By Cultural Symbols
COMMUNICATION PROCESS
The Communications Process
 Communication Process
• Sender or Source
– Is the person or organization that has information
to share with another person or group of people
• Source may be
– Individual(sales person or hired spokesperson)
– Celebrity
– Non-personal entity(corporation or organization
itself)
Cricketer Dhoni is a source in this ad for star city
motorcycle
 McDonalds uses its logo
as symbol which is widely
recognized throughout the
world
 Communication Process
• Encoding
– Source selects words, symbols, pictures and the
like to represent the message that will be
delivered to the receiver(s)
– Involves putting thoughts, ideas, or information
into symbolic form
– Sender’s goal is to encode the message in such a
way that it will be understood by the receiver
– Means using words, signs or symbols that are
familiar to the target audience
 Communication Process
• Message
– The encoding process leads to development of a message
that contains the information or meaning the source hopes
to convey
– May be verbal or non verbal
– Must be put into transmittable form that is appropriate for
the channel of communication
– Content
• Refers to the information and/or meaning contained in
the messages
– Structure and Design
• Refers to the way the message is put together in order
to deliver the information or intended meaning
Vodafone ad uses animation to convey the message
The image projected by an ad often
communicates more than words
Fevicol Ad without any words
 Communication Process
• Channel
– Is the method by which the communication travels
from the source or sender to the receiver
– Personal channels
• Are direct interpersonal contact with target individual groups
– E.g.: Salespeople (word-of-mouth communication)
– Non personal channels
• Are those that carry a message without interpersonal
contact between sender and receiver
• Generally referred as mass media
– 2 types of non personal channels
• Print media(Newspapers, magazines, direct mail, and
bill board)
• Broadcast media(Radio and Television)
 Communication Process
• Receiver/Decoding
– Is the person(s) with whom the sender shares
thoughts or information
• Decoding
– Is the process of transforming the sender's
message back into thought
– Heavily influenced by the receiver’s frame of
reference of field of experience (experiences,
perceptions, attitudes and values)
Ad of Nano tries to depict the affordability, but
it is encoded as a cheap car by the audience
 Communication Process
• Noise
– The extraneous factors that can distort or
interface with the reception
– Noise types
• Errors or problems that occur in the encoding of the
message
• Distortion of radio or television signal
• Distraction at the point of reception
• No overlap between the fields of experience of the
sender and receiver
• Using a sign, symbol or words that are unfamiliar or
may have different meaning to the receiver
 Communication Process
• Response/Feedback
– The receiver's set of reactions after seeing,
hearing or reading the message
– Response can range from non observable actions
such as storing information in memory
Experiential Overlap
 Semiotics
Three components of a marketing message
Marlboro Ad
 Identifying the Target Audience

Analyzing the Receiver

THE RESPONSE PROCESS
 The Response Process
• Understanding response-Most important aspect
of developing effective communication program
• The receiver may go through in moving toward a
specific behaviour
• Marketers objective may be
– Create awareness and trigger interest in the product
– Or Convey detailed information to change consumers'’
knowledge and attitude toward the brand and change
their behaviour
Models of the Response Process
 Models of the Response Process
• AIDA Model
– Was developed to represent the stages a
salesperson must take a customer through in the
personal-selling process
• Hierarchy of Effects Model
– Shows the process by which advertising works
– Basic premise of this model is that advertising
effects occur over a period of time
 Models of the Response Process
• The innovation adoption model
– Evolved from work on the diffusion of innovations
– Represents the stages a consumer passes through
in adopting a new product or service
• Information processing model
– Assumes the receiver in a persuasive
communication situation like advertising is an
information processor or problem solver
– Effective framework for planning and evaluating
the effects of a promotional campaign
Methods of obtaining feedback in the Response
Hierarchy
 Alternative Response Hierarchies
• Michel Ray has developed a model of
information processing that identifies three
alternative orderings of the three stages based
on perceived product differentiation and
product involvement
• The alternative response hierarchies are
1. Standard learning
2. Dissonance/Attribution
3. Low-involvement
An Alternative Response Hierarchy
 The Standard Learning Hierarchy
• In many purchase situations, the consumer will
go through the response process in the sequence
depicted by the traditional communication
models-Standard Learning Model
• Consist of Learn Feel Do sequence
• Information and knowledge acquired or learned
about the various brands are the basis for
developing affect or feelings, that guide what the
consumer will do
Ad addresses the various stages in the
standard learning theory
The Dissonance/Attribution Hierarchy
• Involves situations where consumers first behave,
then develop attitudes or feelings as a result of
that behaviour, and then learn or process
information that supports the behaviour
• Do Feel Learn
• The consumer may purchase the product on the
basis of a recommendation by some nonmedia
source and the attempt to support the decision
by developing a positive attitude towards the
brand and perhaps even developing negative
feeling toward the rejected alternative(s)
Dissonance reduction involves selective
learning, where by consumer seeks
information that supports the choice
made and avoids information that would
raise about the decision

This ad reinforces the

wisdom of the decision to
use a Visa credit card
 The Low involvement Hierarchy
• The receiver in this case is viewed as passing from
cognition to behaviour to attitude change
• Learn Do Feel
• Tends to occur when
– The involvement in the purchase decision is low
– There are minimal differences among brand alternatives,
and mass-media advertising
• When the consumer enters a purchase situation, the
information may be sufficient to trigger a purchase.
The consumer will then form an attitude towards the
purchased brand as a result of experience with it
Involvement Concept
Foote, Cone & Belding Grid/FCB Planning Model
 Informative Strategy
• INFORMATIVE (economic)
• Is for highly involving products and service where
rational thinking and economic considerations prevail
and the standard learning hierarchy is the appropriate
response model
• Classical hierarchy-of-effects:
• Awareness
Knowledge
Liking
Preference
Conviction
Purchase
• Learn Feel Do
Foote, Cone & Belding Grid
 Affective Strategy
• AFFECTIVE (psychological)
• Is for highly involving/feeling purchases
• For these types of products, advertising
should stress psychological and emotional
motives such as building self esteem or
enhancing one’s ego or self image
• Feel Learn  Do
Foote, Cone & Belding Grid
 Habit Formation Strategy
• HABITUAL (responsive)
• Is for low involvement/thinking products with
such routinized behaviour patterns that learning
occurs most often after a trail purchase
• Routine consumer behavior
• Learning occurs most often after exploratory trial
purchase.
• Learning by doing.
• Do  Learn  Feel
Foote, Cone & Belding Grid
 Self-Satisfaction Strategy
• SATISFACTION (social)
• Is for low-involvement/feeling products where
appeals to sensory pleasures and social
motives are important
• Personal taste
• “Life’s little pleasures”
• Peer-oriented items.
• Do  Feel Learn.
Foote, Cone & Belding Grid
 LG encourages
consumers to upgrade
their appliances by
focusing on product
design
 Cognitive Response
• A method for examining consumers’ cognitive
processing of advertising messages by looking at
their cognitive responses to hearing, viewing, or
reading communications
• These thoughts are generally measured by having
consumers write down or verbally report their
reactions to a message
• Assumption is that the thoughts reflect the
recipient's cognitive processes or reactions and
help shape ultimate acceptance or rejection of
the message
A Model of Cognitive Response
 Cognitive Response Categories
• Product/Message Thoughts
– Comprises those directed at the product or
service and/or the claims being made in the
communication
– Has two types of responses
1. Counter arguments
• Are thoughts the recipient has that are opposed to the
position taken in the message
2. Support arguments
• Thoughts that confirm the claims made in the message
 Cognitive Response Categories
• Source-Oriented Thoughts
– Is directed at the source of the communication
– Include two types of responses
1. Source derogations
• Negative thoughts about the spokesperson or
organization making the claims
2. Source bolsters
• Receivers who react favorably to the source generate
favourable thoughts
 Cognitive Response Categories
• Ad Execution Thoughts
– Consist of the individual’s thoughts about the
ad itself
• Affect attitude toward the ad
• Include ad execution factors such as creativity of the
ad, the quality of the visual effects, colors and voice
tones
• Important determinant of advertising effectiveness
• Ad execution-related thoughts can be either
favourable or unfavorable
Consumers often generate
support arguments in
response to ads for quality
products
 The Elaboration Likelihood Model
• Addresses the way consumers respond to persuasive
messages
• Attitude formation or change process depends on the
amount and nature of elaboration or processing of
relevant information that occurs in response to a
persuasive message
• Routes to attitude change
– Central route to persuasion – ability and motivation to process
a message is high and close attention is paid to message
content
– Peripheral route to persuasion – ability and motivation to
process a message is low and receiver focuses more on
peripheral cues rather than message content
 The Elaboration
Likelihood model of
Persuasion
Central routes to persuasion for high involvement products
An ad using peripheral cues, most notably a celebrity endorser
A framework for studying how
advertising works
SOURCE, MESSAGE AND CHANNEL
FACTORS
Promotional Planning Through the Persuasion
Matrix
• Helps marketers see how each controllable
element interacts with consumer's response
process
• Independent variables
– Are the controllable components of the
communication process
• Dependent variables
– Are the steps a receiver goes through in being
persuaded
• Marketers can choose the person or source who
delivers the message, the type of message
appeal used, and the channel or medium
The Persuasion Matrix
 Promotional Planning Through the
Persuasion Matrix
1. Receiver/comprehension
– Can the receiver comprehend the ad?
2. Channel/presentation
– Which media will increase presentation?
3. Message/yielding
– What type of message will create favorable
attitudes or feelings?
4. Source/attention
– Who will be effective in getting consumers’
attention?
 Source Factors
• Source
– The person involved in communicating a marketing
message, either directly or indirectly
1. Direct source
– Is the spokesperson delivering a message and/or
demonstrating a product or service
2. Indirect source
– A model, doesn't actually deliver a message but draws
attention to and/or enhances the appearances of the
ad
Indian Cricket captain MS Dhoni serves as a
spokesperson for Boost ads
 Leonardo DiCaprio
promoting Tag Heuer
 Source Attributes and
Receiver Processing Modes
 Source Credibility
• Credibility is the extent to which the recipient
sees the source as having relevant knowledge,
skill, or experience and trusts the source to give
unbiased, objective information
• Two important dimensions to credibility
– Expertise
– Trustworthiness
• Finding celebrities or other figures with a trustworthy image
is often difficult
• Using corporate leaders as spokespeople
 An ad for Dove soap promoting
the fact that it recommended by
dermatologists who are experts
in skin care
Ad on Trustworthiness
 Source Credibility- Limitations
• In some situations a high-credibility source
may be less effective than a moderate- or low-
credibility source
– When the receiver has a favorable initial attitude
or opinion, the use of a highly credible source may
lead the receiver to attribute his or her opinion to
the source rather than the message being
communicated.
 Source Credibility- Limitations
• When a moderate- or low- credibility source is
used, the receiver cannot really attribute his or
her attitude or opinion to the source.
• The sleeper effect phenomenon is another
reason why a low-credibility source may be just
as effective as a source high in credibility.
• Sleeper effect- based on the insight that source
credibility effects are temporary. As time passes,
the message is remembered but the source may
be forgotten
 Source Attractiveness
• Similarity
– Resemblance between the source and recipient of
the message
• Familiarity
– Knowledge of the source through repeated or
prolonged exposure
• Likeability
– Affection for the source resulting from physical
appearance, behavior, or other personal traits
 The Use of Celebrities
• Endorsements
– The celebrity, whether an expert or not, merely agrees to
the use of his or her name and image in the promotion of
the product.
• Testimonials
– The celebrity, usually an expert with experience with the
product, attests to its value and worth.
• Dramatizations
– Celebrity actors or models portray the brand in use during
dramatic enactments designed to show the goods.
Celebrity Endorsements
Testimonials
Sachin's bat sport
Adidas logo
Celebrity Likability
 Risks of Using Celebrities
• The celebrity may overshadow the product
• The celebrity may be overexposed which
reduces his or her credibility
• The target audience may not be receptive to
celebrity endorsers
• The celebrity’s behavior may pose a risk to the
company
 Understanding the Meaning of
Celebrity Endorsers
• Advertisers must try to match the product or
company’s image, the characteristics of the
target market, and the personality of the
celebrity
 Meaning Movement and
the Celebrity Endorsement Process

According to this model ,a celebrity's effectiveness as an endorser depends on the

culturally acquired meanings he or she brings to the endorsements process
Each celebrity contains many meanings including status, class, gender, and age as
well as personality and lifestyle
Actress Mallika Sherawat’s
‘sexy’ image helps launch
7UP’s ‘Curvy’ bottle
 Message Factors
• Message Structure
– Order of presentation
– Conclusion Drawing
– Message sidedness
– Refutation
– Verbal vs. visual message
 Message Structure
• Order of presentation
– Should the most important message points be
placed at the beginning of the message, in the
middle or at the end?
– Primacy effect
• Presenting the strongest argument at the beginning of
the message
– Recency effect
• Presenting the strong points at the end
Ad Message Recall as a function of order of
Presentation
 Message Structure
• Conclusion Drawing
– Marketing communicators must decide whether
their messages should explicitly draw a firm
conclusion or allow receivers to draw their own
conclusions
– Researches suggest that explicit conclusions are
more easily understood and effective in
influencing attitudes
Conclusion drawing
 Message Sidedness
• One sided message
– Mentions only positive attributes of benefits
– Are most effective when the target audience already
holds a favourable opinion about the topic
– Also work with less educated audience
• Two sided message
– Presents both good and bad points
– Is more effective when the target audience holds an
opposing opinion or is highly educated
– Enhance the credibility of the source
One sided message
An ad for Buckley’s cough syrup that is a good example
of a two-sided message whereby a marketer presents
both positive and negative information about a product
 Message structure
• Refutation
– Special type of two-sided
message
– The communicator
presents both sides of an
issue and the refutes the
opposing view point
– Useful when marketers
wish to build attitudes
that resist change and
must defend against
attacks or criticism of
their products or the
company
 Message Structure
• Verbal versus Visual Messages
– Many ads provide minimal amounts of
information and rely on visual elements to
communicate
– Study showed the use of pictures providing
examples increased both immediate and delayed
recall of product attributes
 Message Factors
• Message Appeals
– Comparative Advertising
• Is the practice of either directly or indirectly naming
competitors in an ad and comparing one or more specific
attributes
– Fear Appeals
• Is an emotional response to a threat that expresses ,or at
least implies ,some sort of danger
– Humor Appeals
• Are often the best known and best remembered of all
advertising messages
Comparative Advertising
 Message Appeals

Comparative Advertising Humour appeal

Message Appeals
Fear appeal
 How fear operates?
• Decisions on
– Level of use
– Response of different target groups
• Curvilinear relationship between level of fear
and message acceptance
Relationship between Fear levels and
Message acceptance
Use of light fear
 Pros and Cons of Using Humor
Advantages
• Aids attention and
awareness
• May aid retention of the
message
• Creates a positive mood and
enhances persuasion
• May aid name and simple
copy registration
• May serve as a distracter
and reduce the level of
counter arguing
Disadvantages
• Does not aid persuasion in
general
• May harm recall and
comprehension
• May harm complex copy
registration
• Does not aid source
credibility
• Is not effective in bringing
about sales
• May wear out faster
 Channel Factors
• Final controllable variable of the
communication process is the channel , or
medium used to deliver the message to the
target audience
• Classified in to two categories
1. Personal channels
2. Non-personal Channels
 Communications Channels
Personal Selling

Personal Channels
Word of Mouth

Print
Media

Nonpersonal
Channels
Broadcast
Media
 Channel Factors
• Effects of alternative mass media
– The various mass media that advertisers use to
transmit their messages differ in many ways
• Number and type of people they reach
• Costs
• Information processing requirements
• Qualitative factors
• Differences in information processing
– Information ads in print media, such as newspapers,
magazines or direct mail as well as internet is self
paced
– Information from the broadcast media of radio and
television is externally paced
 Channel Factors
• Effects of alternative mass media
– Self paced print media make it easier for the
message recipient to process a long complex
message
– Print ads are more effective when for presenting
a detailed message with lot of information
– Broadcast media is more effective for transmitting
shorter messages
 Channel Factors
• Effects of Context and
Environment
– Interpretation of an
advertisement message can
be influenced by the context
or environement in which the
ad appears
– Qualitative media effect
• Is the influence the medium has
on a message
– Commercials placed in
programs that induce
negative moods are
processed less systematically Travel and Leisure magazine creates an
than ads placed in programs excellent reception environment for
that put viewers in positive travel –related ads
moods
 Channel Factors
• Clutter
– The amount of advertising in a
medium
• Television clutter include
– Commercials
– Promotional messages for
shows
– Public service announcements
– Increasing concern to
Advertisers
• Clutter levels are high on many
cable networks
ADVERTISING
 Advertising
• Any paid form of non-personal
communication about an organization,
product, service, or idea by an identified
sponsor.
• Why Advertise?
– Best known and most widely discussed form of
promotion
– Can transmit a message to large group of
individuals, often at same time
 Major Advertising Media
• Magazine
• Television
• Newspaper
• Yellow Pages
• Radio
• Outdoors
• Cinema
• Internet
 Advertising
• A television commercial(TVC) on general
entertainment channel aired at prime-time
may reach over 5 million people
• An issue of the leading Hindi daily Dainik
Jagaran reaches over 16 million readers
• A print ad in the English weekly India Today
may reach about 1.7 million readers
 Who uses Advertising?
• Business firms
• Nonprofit organizations
• Professionals
• Social agencies
• Government
 Characteristics of Advertising
• Can reach masses of geographically dispersed buyers.
• Can repeat a message many times.
• Is impersonal, one-way communication.
• Can be very costly for some media types.
• Low cost per exposure, though overall costs are high
• Consumers perceive advertised goods as more
legitimate
• Dramatizes company/brand
• Builds brand image; may stimulate short-term sales
 Role of Advertising
• Communication with the consumers
• Persuasion
• Catalyst for change
– Change in perception
• Contribution to economic growth
– Development of new market segments
• Need for Non-Commercial advertisements
– Social cause like AIDS awareness programme
 Functions of Advertising
• Social function
– Education consumers through advertisements
• Psychological function
– Appeals to psychological motives of human beings
• Economic function
– Value/price equation conveyed to customer
• According to Prof. Jagdish N Sheth the main
functions of advertising are
– Perception
– Persuasion
– Reinforcement
– Reminder
 Purpose of Advertising
• Objective
– A specific communication task to be accomplished with a
specific target audience during a specific period of time
• Purpose
1. Inform
• Introducing new products
2. Persuade
• Becomes more important as competition increases
3. Comparative advertising
• One competitive method of persuasion
4. Remind
• Most important for mature products
5. Positioning or re-positioning
• Gives shape to a marketing strategy
Commercial & Non Commercial Advertising

• Commercial
– Main objective is to make a sale
– Viewed as investment for returns
– Generally competitive in nature
– Used by commercial organizations
• Non commercial
– Objective is to inform and seek a non monetary response
– Some use “public interest” ads for corporate branding
– Generally used by non profit organizations, government
agencies etc
 Advertising
Advantages Disadvantages
• Advertiser controls the • High costs of producing
message and running ads
• Cost effective way to
communicate with large • Credibility problems and
audiences consumer skepticism
• Effective way to create • Clutter
brand images and symbolic
appeals • Difficulty in determining
• Often can be effective way effectiveness
to strike responsive chord
with consumers
 Classifications of Advertising
National Advertising

Retail/Local Advertising

Primary vs. Selective

Demand Advertising
Consumers

Business-to-Business Advertising

Professional Advertising

Trade Advertising
Organizations
 Consumer Advertising
• National advertising
– Done by large companies on a nationwide basis
– Ads for well-known brands and companies shown on
television are an example.
• Retail/Local advertising
– Done by retail and local merchants encouraging consumers
to shop at a specific store, use a local service, or patronize
a particular establishment
• Primary versus selective demand advertising
– primary demand advertising is designed to stimulate
demand for the general product class or industry
• Used when brand dominates the market and will benefit
the most from the overall market growth
– Selective-demand focuses on creating demand for a
specific company and/or its brands
Advertising to Business and Professional Markets
• Business to business advertising
– Advertising that targets individuals who buy or influence
the purchase of industrial goods or services for their
companies
• Professional advertising
– Advertising targeted to professionals such doctors,
lawyers, engineers, and the like
– Used to encourage professionals to recommend or specify
the sue of company’s product by end users
• Trade advertising
– Targeted to marketing channel members such as
wholesalers, distributors, and retailers
– Goal is to encourage channel members to stock, promote
and resell the manufacturer’s branded products
Major Decisions in Advertising
Advertising through various stages of PLC
• Introduction
– Inform, create awareness
• Growth
– Persuade, differentiate, build brand
• Mature
– Remind, differentiate, Put price ahead of the
competition
• Decline
– Defensive advertising for revival
End of Module 1

Thank You