Post on 25-Oct-2014
Advertising and Advertising and PromotionPromotion
What is Marketing ?What is Marketing ?
‘‘Marketing is the activity, set of Marketing is the activity, set of institutions, and processes for institutions, and processes for creating, communicating, delivering creating, communicating, delivering and exchanging offerings that have and exchanging offerings that have value for customers, clients partners, value for customers, clients partners, and society at large’and society at large’
-AMA, 2007-AMA, 2007
Marketing Mix (the 4 Ps)Marketing Mix (the 4 Ps)
Product:Product: Product variety, quality, Product variety, quality,
design, features, brand design, features, brand name, packaging, sizes, name, packaging, sizes, services, warranties.services, warranties.
PricePrice List price, Discounts, List price, Discounts,
Allowances, Payment Allowances, Payment period, Credit termsperiod, Credit terms
PlacePlace Channels, Locations, Channels, Locations,
TransportTransport PromotionPromotion
Advertising, sales Advertising, sales promotion, public promotion, public relations, personal selling, relations, personal selling, direct marketing.direct marketing.
Definition of AdvertisingDefinition of Advertising
"Advertising is any paid form of non-"Advertising is any paid form of non-personal presentation and promotion personal presentation and promotion of ideas, goods and services through of ideas, goods and services through mass media such as newspapers, mass media such as newspapers, magazines, television or radio by an magazines, television or radio by an identified sponsor".identified sponsor".
-Kotler and Armstrong-Kotler and Armstrong
"The means of providing the most "The means of providing the most persuasive possible selling message persuasive possible selling message to the right prospects at the lowest to the right prospects at the lowest possible cost".possible cost".
-The Institute of Practitioners in -The Institute of Practitioners in Advertising (IPA), a body representing Advertising (IPA), a body representing advertising agenciesadvertising agencies
Why and What Should a Why and What Should a Business Advertise?Business Advertise?
Before starting an advertising campaign, Before starting an advertising campaign,
marketers should answer two key marketers should answer two key
questions:questions:
(1) Why are we advertising?(1) Why are we advertising?
(2) What are we advertising?(2) What are we advertising?
Why Advertise?Why Advertise?
To launch a new product To launch a new product To create awareness, customer interest or To create awareness, customer interest or
desire desire To boost sales (moving the demand curve To boost sales (moving the demand curve
to the right)to the right) To build brand loyalty (or to maintain it at To build brand loyalty (or to maintain it at
the existing level)the existing level) To build the company or brand imageTo build the company or brand image To support the activities of the distribution To support the activities of the distribution
channel (e.g. supporting a “pull” strategy)channel (e.g. supporting a “pull” strategy)
Why Advertise? Cont’d..Why Advertise? Cont’d..
To change customer attitudes – to dismiss To change customer attitudes – to dismiss some bad or wrong perceptions about the some bad or wrong perceptions about the productproduct
To remind and reassure customersTo remind and reassure customers To offset or respond to competitor advertising To offset or respond to competitor advertising To support the sales force – advertising can To support the sales force – advertising can
make the job of the sales force easier and make the job of the sales force easier and more effective by attracting leads from more effective by attracting leads from potential customers and perhaps motivate potential customers and perhaps motivate them by boosting the profile of the businessthem by boosting the profile of the business
To boost public standing: CSRTo boost public standing: CSR
What to Advertise?What to Advertise?
In order to determine what to advertise In order to determine what to advertise there are two questions that needs to be there are two questions that needs to be answered:answered:
Does the business/product have a Does the business/product have a Unique Unique Selling Proposition (“USP”)Selling Proposition (“USP”)??(A unique selling proposition is a customer benefit that no (A unique selling proposition is a customer benefit that no other product can claim)other product can claim)
Does the thing that is being advertised “add Does the thing that is being advertised “add value” and if so, how? value” and if so, how?
Whatever is advertised, it is Whatever is advertised, it is important that the message is:important that the message is:
SeenSeen ReadRead BelievedBelieved RememberedRemembered Action upon by target customersAction upon by target customers
Integrated Marketing Integrated Marketing Communications (IMC)Communications (IMC)
Point ofpurchase
Publicity
Publicrelations
Directmarketing
Interactivemarketing
Specialevents
Packaging
Salespromotion
Directresponse
Traditional Approach to Marketing Traditional Approach to Marketing CommunicationsCommunications
MediaAdver-tising
Contemporary IMC ApproachContemporary IMC Approach
Point ofpurchase
Publicity
Interactivemarketing
Publicrelations
Directmarketing
Specialevents
PackagingSales
promotionDirect
response
MediaAdver-tising
IMC DefinitionIMC Definition
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.
IMC is a strategic business process used to plan, develop, execute and evaluate coordinated, measurable, persuasive brand communication programs with consumers, customers, prospects employees and other relevant external and internal audiences.
The goal of IMC is to generate short-term financial returns and build long-term brand value.
The goal of IMC is to generate short-term financial returns and build long-term brand value.
A Contemporary Perspective of A Contemporary Perspective of IMCIMC
Demand for accountabilityDemand for accountability
Recognized as a business processRecognized as a business process
Importance of relevant audienceImportance of relevant audienceIMCIMC
Reasons for the Growing Reasons for the Growing Importance of IMCImportance of IMC
Traditional compensationTraditional compensation
Performance-based compensation
Performance-based compensation
Media advertisingMedia advertising Multiple forms of communicationMultiple forms of communication
Mass mediaMass media Specialized mediaSpecialized media
Manufacturer dominanceManufacturer dominance Retailer dominanceRetailer dominance
General focusGeneral focus Data-based marketingData-based marketing
Low agency accountabilityLow agency accountability Greater agency accountabilityGreater agency accountability
Limited Internet availabilityLimited Internet availability
Widespread Internet availabilityWidespread Internet availability
From Toward
The Role of IMC in BrandingThe Role of IMC in Branding
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
Brand Identity is a combination of factors: Name, logo, symbols, design, packaging, product or service performance, and image or associations in the consumer’s mind.
IMC plays a major role in the process of developing and sustaining brand identity and equity.
IMC plays a major role in the process of developing and sustaining brand identity and equity.
Promotional MixPromotional MixPromotion is the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.
Promotion is the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.
The basic tools used to accomplish and organization’s communication objectives are often referred to as the Promotional Mix
The basic tools used to accomplish and organization’s communication objectives are often referred to as the Promotional Mix
Elements of Promotional MixElements of Promotional Mix
AdvertisingAdvertising
Sales PromotionSales Promotion
Publicity/PublicRelations
Publicity/PublicRelations
Personal SellingPersonal Selling
Direct MarketingDirect Marketing
Interactive/
Internet MarketingInteractive/
Internet Marketing
AdvertisingAdvertising
Advertising- Advertising- Any paid form of Any paid form of non-personal non-personal presentation and promotion of ideas, products, presentation and promotion of ideas, products, or services by an identified sponsor.or services by an identified sponsor.
Non-personalNon-personal means- it involves mass media means- it involves mass media like TV, Newspapers, Radio, Magazines etc. and like TV, Newspapers, Radio, Magazines etc. and there is no immediate feedback on the there is no immediate feedback on the message from the consumer.message from the consumer.
It is the best-known and most widely discussed It is the best-known and most widely discussed from of promotion because of its popularity.from of promotion because of its popularity.
It is also a very important promotional tool, It is also a very important promotional tool, specially for companies whose products and specially for companies whose products and services are targeted to mass market such as services are targeted to mass market such as FMCG, Banks, automobile companies etc.FMCG, Banks, automobile companies etc.
Advertising (Cont’d)Advertising (Cont’d)
It is a great tool to build brand equity as it It is a great tool to build brand equity as it can powerfully change consumer can powerfully change consumer perceptions.perceptions.
It helps improve brand image.It helps improve brand image. It is still the most cost effective way to reach It is still the most cost effective way to reach
large audiences.large audiences. It helps those brands that are hard to sell It helps those brands that are hard to sell
because of less USPs.because of less USPs. Nature and purpose of advertising is different Nature and purpose of advertising is different
from one industry to another and/or across from one industry to another and/or across situation e.g. B2C is different from B2B.situation e.g. B2C is different from B2B.
Sales PromotionSales Promotion
Promotion and Sale Promotion (SP) are two Promotion and Sale Promotion (SP) are two different terms. different terms.
Promotion is an element of marketing by Promotion is an element of marketing by which firms communicate with their which firms communicate with their customers; it includes all promotional mix customers; it includes all promotional mix elements.elements.
Sales Promotion- Sales Promotion- those marketing activities those marketing activities that provide extra value or incentives to the that provide extra value or incentives to the sales force, distributors, or the end consumer sales force, distributors, or the end consumer and stimulate immediate sales.and stimulate immediate sales.
Type of SPs: Consumer Oriented & Trade Type of SPs: Consumer Oriented & Trade Oriented.Oriented.
Sales Promotion (Cont’d)Sales Promotion (Cont’d)
SP is often 60 to 70 percent of SP is often 60 to 70 percent of promotional budget. promotional budget.
Why?- Why?- Due to declining brand loyalty and Due to declining brand loyalty and
increased consumer sensitivity to increased consumer sensitivity to promotional deals.promotional deals.
Retailers have become larger and more Retailers have become larger and more powerful and thus demand trade powerful and thus demand trade promotional support from companies.promotional support from companies.
Sales Promotion (Cont’d)Sales Promotion (Cont’d)
• Consumer-oriented
• [For end-users]
• Trade-oriented
• [For resellers]
EventsEvents
Loyalty ProgramsLoyalty ProgramsBonus Packs Bonus Packs
Refunds/Rebates Refunds/Rebates
Contests/SweepstakesContests/Sweepstakes
PremiumsPremiumsSamplesSamplesCouponsCoupons
CoopAdvertising
CoopAdvertising
TradeShowsTradeShows
TrainingProgramsTraining
Programs
POP DisplaysPOP Displays
TradeAllowances
Sales Promotion (Cont’d)Sales Promotion (Cont’d)
ManufacturerManufacturer
ConsumerConsumer
wholesalerwholesaler
RetailerRetailer
Push Strategy
Flow of promotion; mainly personal selling & sales promotion directed to intermediaries
ManufacturerManufacturer
ConsumerConsumer
wholesalerwholesaler
RetailerRetailer
Pull Strategy
Flow of promotion; advertising mainly directed to consumers
Publicity/ Public RelationsPublicity/ Public Relations
Publicity-Publicity- Refers to non-personal communications Refers to non-personal communications regarding an organization, product, service, or idea regarding an organization, product, service, or idea not directly paid for or run under identified not directly paid for or run under identified sponsorship.sponsorship.
It usually comes in the form of a news story, editorial, It usually comes in the form of a news story, editorial, or announcement about an organization and/or its or announcement about an organization and/or its products and services.products and services.
Similar to advertising, it involves non-personal Similar to advertising, it involves non-personal communication to a mass audience.communication to a mass audience.
BUT unlike advertising it is not directly paid for by the BUT unlike advertising it is not directly paid for by the company.company.
The company tries to get the media cover their event The company tries to get the media cover their event or story and write favorably about its products or or story and write favorably about its products or services.services.
Publicity has advantage over other forms Publicity has advantage over other forms of promotions due to its credibility.of promotions due to its credibility.
Consumers generally tend to be less Consumers generally tend to be less skeptical toward favorable information skeptical toward favorable information about a product or service when it comes about a product or service when it comes from a source they perceive as unbiased.from a source they perceive as unbiased.
However, publicity is not always under the However, publicity is not always under the control of an organization and is control of an organization and is sometimes unfavorable.sometimes unfavorable.
Negative stories about a company and/or Negative stories about a company and/or its products can be very damaging.its products can be very damaging.
Publicity/ Public Relations Publicity/ Public Relations (Cont’d)(Cont’d)
InterviewsInterviews
FeatureArticlesFeatureArticles
SpecialEventsSpecialEvents
PressConferences
PressConferences
NewsReleases
NewsReleases Publicity
VehiclesPublicityVehicles
Publicity/ Public Relations Publicity/ Public Relations (Cont’d)(Cont’d)
Public Relations- Public Relations- the management function the management function which evaluates public attitudes, identifies the which evaluates public attitudes, identifies the policies and procedures of an individual or policies and procedures of an individual or organization with the public interest, and organization with the public interest, and executes a program of action to earn public executes a program of action to earn public understanding and acceptance.understanding and acceptance.
Its purpose is to establish and maintain a positive Its purpose is to establish and maintain a positive image of the company among its various publics.image of the company among its various publics.
Publicity is part of Public Relations.Publicity is part of Public Relations. It used to be treated as a support to other It used to be treated as a support to other
marketing activities but now it is an integral part marketing activities but now it is an integral part of the promotional strategies.of the promotional strategies.
Publicity/ Public Relations Publicity/ Public Relations (Cont’d)(Cont’d)
Publicity/ Public Relations Publicity/ Public Relations (Cont’d)(Cont’d)
Corporate Advertising
Cause-related Marketing
PublicityVehicles
CommunityActivities
Public AffairsActivities
SpecialPublications
Special EventSponsorship
Personal SellingPersonal Selling
Personal Selling- Personal Selling- a form of a form of person-to-person person-to-person communication in which a seller attempts to assist and/or communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s persuade prospective buyers to purchase the company’s product or service or to act on an idea.product or service or to act on an idea.
Unlike advertising which is non-personal in nature, personal Unlike advertising which is non-personal in nature, personal selling involves direct contact between buyer and seller, selling involves direct contact between buyer and seller, either face-to-face or through some form of either face-to-face or through some form of tlecommunications such as telephone sales.tlecommunications such as telephone sales.
Through PS the seller can understand the consumer Through PS the seller can understand the consumer behavior in a much better way.behavior in a much better way.
PS has the flexibility of modifying the communication PS has the flexibility of modifying the communication message based on buyer’s reaction or feedback.message based on buyer’s reaction or feedback.
Message can be tailor made considering the target market.Message can be tailor made considering the target market.
Direct MarketingDirect Marketing
Direct Marketing-Direct Marketing- Is a type of marketing in which organizations Is a type of marketing in which organizations communicate directly with the end consumers to generate a response communicate directly with the end consumers to generate a response and/or transactions.and/or transactions.
This form of marketing is different from other marketing approaches, This form of marketing is different from other marketing approaches, primarily because there are no intermediaries such as retailers between primarily because there are no intermediaries such as retailers between the buyer and seller, and therefore the buyer must contact the seller the buyer and seller, and therefore the buyer must contact the seller directly to purchase products or services.directly to purchase products or services.
Traditionally it was not considered an itegral part of the promotional mix.Traditionally it was not considered an itegral part of the promotional mix. Nowadays many organizations involve separate objectives, budgets and Nowadays many organizations involve separate objectives, budgets and
strategies.strategies. One of the most important tool of DM is Direct-response advertising.One of the most important tool of DM is Direct-response advertising. Direct-response marketing is delivered through a wide variety of media, Direct-response marketing is delivered through a wide variety of media,
including DRTV, radio, mail, print advertising, telemarketing, catalogues, including DRTV, radio, mail, print advertising, telemarketing, catalogues, and the Internet.and the Internet.
Direct-response ads like infomercials can be contrasted with normal Direct-response ads like infomercials can be contrasted with normal television commercials because traditional commercials normally do not television commercials because traditional commercials normally do not solicit a direct immediate response from the viewer, but instead try to solicit a direct immediate response from the viewer, but instead try to brand their product in the market place.brand their product in the market place.
Direct Marketing (Cont’d)Direct Marketing (Cont’d)
Customers &
Prospects
Customers &
Prospects
TelemarketingTelemarketing
Kiosk Marketing
Kiosk Marketing Direct-mail
Marketing
Direct-mail Marketing
Catalog Marketing
Catalog Marketing
Direct-Response TV
Marketing
Direct-Response TV
Marketing
Face-to-Face Selling
Face-to-Face Selling
Online Marketing
Online Marketing
Interactive/Internet Interactive/Internet MarketingMarketing
Interactive media allow for a back-and-forth flow of Interactive media allow for a back-and-forth flow of information whereby uses can participate in and modify the information whereby uses can participate in and modify the form and content of the information they receive in real form and content of the information they receive in real time.time.
It is different from the conventional advertising which is one It is different from the conventional advertising which is one way in nature.way in nature.
It allows the user to perform a variety of functions such as It allows the user to perform a variety of functions such as receive and alter information and images, make inquiries, receive and alter information and images, make inquiries, respond to questions, and make purchases.respond to questions, and make purchases.
In addition to internet, other forms of interactive media In addition to internet, other forms of interactive media includes CD-ROMs, kiosks, interactive television, and digital includes CD-ROMs, kiosks, interactive television, and digital cell phones.cell phones.
Organizations have developed websites to promote their Organizations have developed websites to promote their products and services, by providing current and potential products and services, by providing current and potential customers with information as well as entertain and interact customers with information as well as entertain and interact with them.with them.
IMC Involves Audience IMC Involves Audience ContactsContacts
Target AudienceTarget Audience
Broadcast media
(TV/radio)
Broadcast media
(TV/radio)
Print media (newspapers, magazines)
Print media (newspapers, magazines)
Public Relations/publicity
Public Relations/publicity
Internet/interactiveInternet/
interactive
Directmarketing
Directmarketing
Sales Promotion
Sales Promotion
Product placements
(TV and movies)
Product placements
(TV and movies)
Events and sponsorshipEvents and sponsorship
Word-of-mouth
Word-of-mouth
POP (displays,
packaging)
POP (displays,
packaging)
Personal selling
Personal selling
Out-of-home media
Out-of-home media
The IMC Planning ProcessThe IMC Planning Process
Promotional program situation analysis
Analysis of the communications process
Budget determination
Develop integrated marketing communications programs
Review of marketing plan
AdvertisingSales
promotionPR/
publicityPersonalselling
Directmarketing
Advertisingobjectives
Salespromotionobjectives
PR/publicity
objectives
Personalselling
objectives
Directmarketingobjectives
Messagestrategy
Salespromotionstrategy
PR/publicitystrategy
Personalselling
strategy
Directmarketingstrategy
Integrate and implement marketing communications strategies
Monitor, evaluate and control IMC Program
Internet/interactive
Internet/interactiveobjectives
Internet/interactivestrategy
Organizing for Advertising and Organizing for Advertising and Promotion: The Role of Ad Promotion: The Role of Ad
Agencies and Other Marketing Agencies and Other Marketing Communication OrganizationsCommunication Organizations
Chapter 3
Participants in the IMC Participants in the IMC ProcessProcess
AdvertiserAdvertiser Advertising Agency
Advertising Agency
Media Organizations
Media Organizations
Marketing Communication
specialist Organizations:
Direct-Marketing agencies,
Sales promotion agencies,
Interactive agencies, Public relation firms
Marketing Communication
specialist Organizations:
Direct-Marketing agencies,
Sales promotion agencies,
Interactive agencies, Public relation firms
Collateral Services
Collateral Services
Full Service Agency Org. Full Service Agency Org. ChartChart
Creative Director
Creative Director Account DirectorAccount Director Media DirectorMedia Director Finance DirectorFinance Director
MDMD
Writers/Art Dir.Writers/Art Dir.
TV ProductionTV Production
Print ProductionPrint Production
Traffic ControlTraffic Control
Acc. Management
Acc. Management
Account ExecutiveAccount Executive
Media PlanningMedia Planning
Media BuyingMedia Buying
Finance Depart.Finance Depart.
AccountsAccounts
Admin./PersonnelAdmin./
Personnel