Advertising and IMC

Advertising Overview
The business of Advertising is to attract attention Some interesting quotations ascribed to advertising You cant save souls in an empty church. Doing business without advertising is like winking at a girl in the dark, you know what you are doing, but nobody else does Stewart H Britt. Chris Jacques, Chairman, BBDO Asia Pacific thinks that advertising is the business of creative thinking for commercial advantage.

An average person is introduced to more than 600 advertisements per day. People are bombarded with messages through an expanding variety of media like
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Television
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Radio

Newspapers and magazines

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Hoardings

Direct mail campaigns

the new age media like the ads on the Internet

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Telemarketing programmes &

Messages heard while a consumer is on hold on the telephone.

Integrated Marketing Communications

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

Marketing
Marketing Mix:

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Promotional Mixes

Product or Service lPricing lChannels of Distribution lPromotion

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Promotional Mix: Advertising Direct Marketing lInteractive/internet marketing lSales Promotion lPublicity/Public Relations lPersonal Selling
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Communication-Based Marketing Model

Corporate Level Message Sources

Administration Manufacturing/ Marketing Finance Human Operations Resources

Cross-Functional Brand Equity (IM) Team

Other Stakeholders Employees Investors Financial Community Government Regulators

Marketing Level Message Sources

Product Mix Price Mix Marketing Distribution Communication Mix
Interactivity

Customers Suppliers

Distributors Competitio n

Cross-Functional IMC Team Marketing Communication Level Message Sources Personal Adver- Sales Direct Public PackSales tising Promotion Marketing Relations aging Events

Consumers Local Community Media Interest Groups

Communication Levels
Corporate Level Messages sent by a companys 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

Reasons For Growing Importance of IMC

lShift from media advertising to other forms of marketing

communication

lMovement away from advertising focused- approaches that lemphasize mass media lShift in power from manufacturers to retailers lRapid growth of database marketing lDemands for greater ad agency accountability lChanges in agency compensation lRapid growth of the Internet lIncreasing importance of branding

Coca-Cola is the worlds most valuable brand

IMC Communication Tools

IMC Communication Tools

Advertisin g Sales Promotio n

Direct Marketing Publicity/Public Relations

Interactive/ Internet Marketing Persona l Selling

Advertising
Any paid form of nonpersonal communication about an organization, product, service, idea or cause by an identified sponsor.
Disadvantages of advertising High costs of producing and running ads

Advantages of advertising

Advertiser controls the message

Cost effective way to communicate with large audiences

Effective way to create brand images and symbolic appeals

Credibility problems and consumer skepticism

Clutter Difficulty in determining effectiveness

Often can be effective way to strike responsive chord with consumers

Classifications of Advertising
Advertising to Consumer Markets National advertising Retail/local advertising Advertising to increase demand Primary demand for the product category Selective demand for a specific brand Business & professional advertising Business-to-business advertising Professional advertising Trade advertising

An example of a business-to-business ad

Direct Marketing
A system of marketing by which organizations communicate directly with target customers to generate a response and/or a transaction.

Advantages

Disadvantages Lack of customer receptivity and very low response rates

Changes in society have made consumers more receptive to directmarketing

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Allows marketers to be very selective and target specific segments of customers

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Clutter (too many messages)

Messages can be customized for specific customers.

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Image problems particularly with telemarketing

Effectiveness easier to measure

Direct Marketing
Direct marketing methods Direct mail Catalogs Telemarketing Direct response ads Direct selling

Interactive/Internet Marketing
A form of marketing communication through interactive media which allow for a two-way flow of information whereby users can participate in and modify the content of the information they receive in real time.

Advantages
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Disadvantages Internet is not yet a mass medium as many consumers lack access Attention to Internet ads is very low Great deal of clutter on the Internet Audience measurement is a problem on the Internet

be used for a variety of IMC functions lMessages can be tailored to specific interests and needs of customers lInteractive nature of the Internet leads to higher level of involvement lCan provide large amounts of information to customers.

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

Internet is an important IMC tool for American Airlines

Source: Courtesy American Airlines.

Sales Promotion
Marketing activities that provide extra value or incentives to the sales force, distributors, or ultimate consumers and can stimulate immediate sales.
Consumer-oriented Targeted to the ultimate users of a product or service Coupons lSampling lPremiums lRebates lContests lSweepstakes lPOP materials
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Trade-oriented Targeted toward marketing intermediaries such as retailers, wholesalers, or distributors Promotion allowances lMerchandise allowances lPrice deals lSales contests lTrade shows
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Sales Promotion Uses

Introduce new products Get existing customers to buy more Attract new customers Combat competition Maintain sales in off season Increase retail inventories Tie in advertising & personal selling Enhance personal selling efforts

Publicity
Nonpersonal communication regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship.

Advantages Credibility Low cost (although not totally free) Often results in word-of-mouth Disadvantages Not always under control of organization Can be negative

Publicity Vehicles
News Releases: Single-page news stories sent to media who might print or broadcast the content. Feature Articles: Larger manuscripts composed and edited for a particular medium. Captioned Photos: Photographs with content identified and explained below the picture. Press Conferences: Meetings and presentations to invited reporters and editors. Special Events: Sponsorship of events, teams, or programs of public value.

Advertising Versus Publicity

FACTOR Control Credibility Reach Frequency Cost Flexibility Timing ADVERTISING Great Lower Achievable Schedulable Specific High Specifiable PUBLICITY Little Higher Undetermined Undetermined Unspecified/low Low Tentative

Public Relations
The management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.

Tools used by Public Relations Publicity Special publications Community activity participation Fund-raising Special event sponsorship Public affairs activities

Personal Selling
Direct person-to-person communication whereby a seller attempts to assist and/or persuade perspective buyers to purchase a product or service.
Advantages Direct contact between buyer and seller allows for more flexibility

Disadvantages

High costs per contact

Can tailor sales message to specific needs of customers

Expensive way to reach large audiences

Allows for more direct and immediate feedback

Sales efforts can be targeted to specific markets and customers who are best prospects.

Difficult to have consistent and uniform message delivered to all customers

Promotional Management
Coordinating the promotional mix elements to develop a controlled, integrated program of effective marketing communications.

Considerations for developing the promotional program include: Type of product Buyers decision process Stage of product life cycle Channels of distribution

Integrated Marketing Communications Planning Model Review of Marketing Plan Promotional Program Situation Analysis Analysis of the Communications Process Budget Determination Develop Integrated Marketing Communications Programs Advertising Advertising Objectives Message Strategy

Sales Promotion
Sales Promotion Objectives Sales Promotion Strategy

PR/ Publicity
PR/ Publicity Objectives PR/ Publicity Strategy

Personal Selling
Personal Selling Objectives Personal Selling Strategy

Direct Marketin g
Direct Marketing Objectives Direct Marketing Strategy

Internet/ Interactiv e
Internet/ Interactive Objectives Internet/ Interactive Strategy

Integration & Implementation of Marketing Communications Strategies

Monitor, Evaluate & Control Promotional Program

The Marketing Plan

A document that describes the overall marketing strategy and programs developed for a company, product or brand. The plan includes: A detailed situation analysis Specific marketing objectives A marketing strategy and program that includes selection of a target market and plans for marketing mix elements A program for implementing the strategy A process for monitoring and evaluating performance

Situation Analysis
Internal Factors Assessment of the firms promotional organization and capabilities Review of the firms previous promotional programs Assessment of firm or brand image and implications for promotion Assessment of relative strengths and weaknesses of product/service External Factors Customer analysis Competitive analysis Environmental analysis

Situation Analysis External Factors

Environmental analysis Technological Political/Legal Demographic Socio/Cultural Economic

Competitive Analysis Direct and indirect competitors Position relative to competitors Size of competitors advertising/ promotional budgets IMC strategies being used by competitors

Situation Analysis External Factors

Customer Analysis Who buys our product or service? Who initiates and makes the decision to purchase and who influences the process? How is the purchase decision made? What attributes or criteria are important to customers? What are customers perceptions of and attitudes toward our company, product/service or brands? What factors influence the decision making process? Contact points where customers can be reached?

Analysis of Communications Process

Analyze response process of customers audience.

in the target

Analyze best combination of source, message and channel factors for communicating with target audience.

Establish communication goals and objectives.

Potential Communications Objectives

Sales Customer loyalty Company image Brand image Store patronage Service contract

An inquiry A visit by a prospect Product trial Recommendation Adoption of the product

The objectives of this ad include image building and encouraging inquiries

Contact Points Where Customers Can Be Effectively Reached

Mass media Broadcast - radio/TV Newspapers Magazines Direct Marketing Internet/interactive Brochures, sales Literature Publicity/PR Events/sponsorships Local Regional National/international Sales Promotions In-store/POP Product placements in movies and television shows Promotional products

Develop Integrated Marketing Communications Program

Advertising Determine objectives and budget Message development Called Creative Strategy Determine basic appeal Determine main message Media strategy Communication channels Type of media . . . Newspapers/Magazines Radio/Television Outdoor/Specialty Select specific media Specific papers, magazines, TV programs, radio stations, billboards, or other media

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

Monitor, Evaluate and Control Integrated Marketing Communications Program

Evaluate promotional program results and determine effectiveness

Take actions to control and adjust promotional programs