Introduction to Integrated Marketing Communications

The Growth of Advertising and Promotion

The Indian advertising industry is poised to grow at 18% compound annual growth rate to reach Rs.1 trillion by 2011 from its present size of Rs.437 billion, according to the 2007 annual edition of the FICCI - PricewaterhouseCoopers report Indian advertising Industry – A Growth Story Unfolds. Rising income levels and consumerism bred from the country’s strong economic growth are creating a growing demand for entertainment. This coupled with technological advancements, policy initiatives taken by the Indian Government that are encouraging the inflow of investment and initiative by private media companies, will prove to be the key drivers for the entertainment and media industry. The industry has been forecast to outperform the economic growth in each year, till 2011.

Marketing Communications Advertising Sales Promotion Public Relations/Publicity Personal Selling Direct Marketing & E-marketing

Point of Purchase Publicity Public Relations Direct Marketing Interactive Marketing Special Events Packaging Sales Promotion Direct Response Traditional Approach to Marketing Communications Media Adver- tising

Integrated Marketing Communications (IMC) It is the communications mix adopted by a company to derive synergies from the various types of marketing communications available

Contemporary IMC Approach Point of Purchase Publicity Interactive Marketing Public Relations Direct Marketing Special Events Packaging Sales Promotion Direct Response Media Adver- tising

Relationship between Promotion, Promotional Mix and IMC Process Tools Management PromotionPromotional MixIMC

Advertising has its origins in the U.S. in the early part of the 20 th century Volney B. Palmer – media broker Ads were released to make the magazines interesting and the media paid for the ads instead of getting paid!

Ladies Home Journal “The editor of the Ladies Home Journal thinks that we publish it for the benefit of the American women. This is an illusion, but a very proper one for him to have. The real reason, the publisher’s reason is to give you who manufacture things American women want, a chance to tell them about your product – Cyrus H. K. Curtis, founder of ladies Home Journal

Understanding Advertising is any paid form of non- personal presentation and promotion of ideas, goods and services by an identified sponsor. – Kotler Advertising is a paid, mass mediated attempt to persuade “salesmanship in print” Substitute for a human salesman

Economic effects of advertising Provides information Maintains or enhances brand equity Supports the media Provides employment Provides product utility Stimulates introduction of new products

Traditional Compensation Performance Based Compensation Traditional Compensation Performance Based Compensation Media Advertising Multiple Forms of Communication Mass Media Specialized Media Manufacturer Dominance Retailer Dominance General Focus Data Based Marketing Low Agency Accountability Greater Agency Accountability Limited Internet Availability Widespread Internet Availability Media Advertising Multiple Forms of Communication Mass Media Specialized Media Manufacturer Dominance Retailer Dominance General Focus Data Based Marketing Low Agency Accountability Greater Agency Accountability Marketing Revolution and Shifting Tides FromToward

Ethical Issues to Advertising Over crores is the adspend of this country. Can this not be used for more productive purposes? Goods could be cheaper if such huge adspends were not incurred by industry “Advertising makes people buy things which they never knew, which they don’t need with money that they don’t have” Advertising is intrusive and invades personal privacy Advertising is manipulative and has a damaging influence on impressionable minds Advertising is offensive and distasteful. Advertising promotes and raises aspirations fuelling a materialistic society Advertising promotes harmful products like tobacco and alcoholic beverages Advertising promotes stereotype thinking Advertising leads to deceptive claims being believed by a gullible society

Advertising Media Press Electronic Cinema Radio Outdoor TV Internet

Display Advertising Revenues Rediff 15.0 Yahoo 12.0 Indiatimes 6.0 Web18 Group 3.0 MSN 2.5 Sify 2.0 Naukri 1.3 WebDunia 0.8 Others (Jan-Dec) basis

Introduce New Products Get Existing Customers to Buy More Attract New Customers Maintain Sales In Off Season Increase Retail Inventories Tie In Advertising & Personal Selling Enhance Personal Selling Combat Competition Introduce New Products Get Existing Customers to Buy More Attract New Customers Maintain Sales In Off Season Increase Retail Inventories Tie In Advertising & Personal Selling Enhance Personal Selling Sales Promotion Sales Promotion Sales Promotion

Direct Response Advertising Direct Response Advertising Direct Response Advertising Direct Response Advertising Direct Mail Direct Mail Cataloging Telemarketing Internet Sales Internet Sales Shopping Channels Shopping Channels Direct Mail Direct Mail Telemarketing Catalogs Shopping Channels Shopping Channels Direct Marketing is Part of IMC Direct Marketing

Consumer- oriented [For end-users] Trade-oriented [For resellers] Events Loyalty Programs Bonus Packs Refunds/Rebates Contests/Sweepstakes Premiums Samples Coupons Coop Advertising Trade Shows Training Programs POP Displays Trade Allowances Sales Promotion Tools

Interviews Feature Articles Feature Articles Special Events Special Events Press Conferences Press Conferences News Releases News Releases Feature Articles Feature Articles Special Events Special Events News Releases News Releases Publicity Vehicles

Corporate Advertising Cause-related Marketing Publicity Vehicles Community Activities Public Affairs Activities Special Publications Special Event Sponsorship Publicity Vehicles Community Activities Public Affairs Activities Special Publications Public Relations Tools

The Communication Process SenderReceiver Encoding Response Feedback Decoding media Filter Noise

Major Institutions involved in the field of Advertising management Advertiser Research suppliers Government Competition Markets and Consumer behaviour Ad agency Media Control InstitutionsFacilitating Institutions

The Advertising Agency Client Servicing/Accounts management Media Creative Accounts Personnel/HRD

Other Agencies Media shops – Mindshare, Madison, Starcom Creative boutiques – Ray and Kesavan Event management agencies- Wizcraft Sales Promotion agencies Direct marketing outfits – Lintas Direct PR houses – Genesis Research suppliers – MARG, IMRB, Nielsen

Advertising Planning & Decision Making

Situation Analysis Marketing program Advertising Plan Implementation Plan Consumer/market /competition analysis Objective/Segmen tation/positioning/ Message/media The Marketing Plan

1. A detailed situation analysis 2. Specific marketing objectives 3. A marketing strategy and program 4. A program for implementing the strategy 5. A process for monitoring and evaluating performance 1. A detailed situation analysis 3. A marketing strategy and program 4. A program for implementing the strategy 2. Specific marketing objectives The Marketing Plan