Imc Prof Broto
Imc Prof Broto
Imc Prof Broto
Course Objectives:
Learning Outcomes:
i) Apply the key terms, definitions, and concepts used in integrated marketing
communications.
ii) Choose a marketing communications mix to achieve the communications and
behavioural objectives of the IMC campaign.
iii) Structure an integrated marketing communications campaign based on the application
of marketing concepts, principles, and practices within an organization.
iv) Measure and critically evaluate the communications effects and results of an
Units Syllabus –
Unit No: 2 Advertising- Meaning, Functions & Types of Advertising- Commercial 11 MBA
(General) advertising, corporate advertising, surrogate advertising, social advertising, Ad appeals
– rational, emotional – positive emotional, negative emotional appeal, humor, musical etc.
Objections on Advertising. ASCII guidelines for the advertisers and celebrity endorsers
Unit No: 3 Media mix: Types of media- Print, broadcast – Television and Radio, Outdoor,
Transit, Social Media- Facebook , Instagram, Twitter etc. Media mix planning and scheduling 08
Unit No: 4 Sales Promotion- Objectives of sales promotion, Trade promotion - Consumer
promotion- coupons, Premiums, contests, Sweepstakes, refund and Rebate, Sampling 04 Unit
No: 5 Public relation(PR), Types of PR- Publicity -Corporate Reputation, image building, crisis
management, Event Sponsorship, word of mouth (WOM) Marketing, Direct Marketing 07
Unit No: 6 Integrated Marketing Communications (IMC) Promotional Tools: Product placement
and Branding in films, Product placement on television, Film Based Merchandising,
Sponsorships for Reality Shows & TV serials, Ambush marketing 07
Name of the Author Title of the Book Year Edition Publisher Company
2 – National George E. Belch, Michael A. Belch and Keyur Purani Advertising and Promotions
2013 9th Edition McGraw Hill Education (India)
Concept, Components of Integrated Marketing Communications (IMC) - Above the Line (ATL),
Below the line (BTL) and Through The line (TTL) promotion - Push and Pull strategy 08
It has emerged as the dominant approach used by companies to plan and execute their marketing
communication programs. Many marketers, as well as advertising agencies, are embracing the
IMC paradigm and developing integrated campaigns that use a variety ways to communicate
with their target audiences. (McArthur and Griffin 1997, Belch & Belch, 2004, Duncan 2005)
The shift toward the IMC perspective has been hailed as one of the most significant changes in
the history of advertising and promotion (Moriarty 1994; Reitman 1994) and as the major
communications development of the last decade of the 20th century (Kitchen, Brignell, Li and
Jones 2004).
The movement toward IMC is being driven by a number of factors including the
evolution from mass to micromarketing; the fragmentation of consumer markets and media
audiences; the increased use of sales promotions and public relations; the proliferation of new
media and alternatives for reaching consumers, such as the internet and other digital and wireless
devices; and the rapid growth and development of database marketing. New technologies such
as personal video recorders (PVRs) are threatening the traditional advertising model for
television and leading marketers to turn to nontraditional media such as event sponsorships,
product placements, and various forms of ―advertainment‖ such as short films shown on the
Internet (Bianco 2004). As marketers work to find the right way to send the right message to the
right person at the right time they are looking beyond advertising and the traditional mass media-
focused approach to marketing communication.
From an academic perspective, it has been argued that IMC is the foundation of new customer-
focused marketing efforts for acquiring, retaining, and growing relationships with customers and
other stakeholders (Duncan and Moriarty, 1998). However, despite the growing popularity of
IMC, theory development and research in this area is still limited.
Advertising: Advertisement is any paid form of non personal communication about a brand,
organization, product, service or idea identified by a sponsor. ...
Sales Promotion: ...
Personal Selling: ...
Direct Marketing: ...
Public Relations: ...
Internet Marketing:
Importance of IMC
Integrated marketing communication is a concept where the company carefully integrates and
coordinates through its communications channels to deliver a clear and consistent
message. Elements of integrated marketing communications aim to ensure the consistency of
these messages and the complementary use of media. The main objective of delivering their
message through various elements of integrated marketing communication is to create a seamless
experience for customers by various aspects of the marketing promotional mix. Elements of
integrated marketing communication work towards creating, delivering, managing and
evaluating the brand message. These messages and other related media are used to communicate
with the market/customers as a part of their marketing promotional mix.
Thus, it is a marketing promotional mix strategy used by brands to reach out to their target
market through various elements of integrated marketing communications because brands do
not want to miss any opportunity to mark their presence wherever potential customers are
available. Thus, these different elements provide them with a platform to communicate with their
customers and create a strong brand recall value.
Integrated marketing communications is a long–term ongoing process and not just like any other
campaign. It focuses on strategic planning, refinement of communication, and proper channel
analysis. It is a customer-centric approach. Marketing nowadays, unlike in the past, is focused on
what people want rather than what firms want to sell. Therefore, it revolves around aligning the
objective with the goals a company wants to achieve with their marketing promotional mix.
Integrated marketing communication planning requires its elements to be in coordination along
with adding value to a comprehensive plan that evaluates the strategic roles of a variety of
communication disciplines. The end goal of this promotional mix is to inform, persuade, reminds
the target audience about their presence, modify purchase behavior/thoughts, educate customers
and retain them. This movement is driven by changes in the ways companies market their
products and services. The continuing revolution that is redefining the norms of marketing is one
of the primary reasons for the IMC approach‘s growing significance.
1. Advertising
Advertisement is any paid form of non personal communication about a brand, organization,
product, service or idea identified by a sponsor. The word ―paid‖ reflects the space or time given
for an advertising message to be conveyed to the consumers. The ―non personal‖ component
involves sharing the message to a larger group of audience at the same time. This generally
involves the media. Though it lacks the scope for immediate feedback and hence the advertiser
has to consider how their target audience would respond and interpret it accordingly.
Advertising is a valuable tool to provide consumers with all the information keep them updated
and influence their perception. It can be used to create favorable, unique images and associations
for a brand. This helps to create a functional difference between the brand and its competitors. It
is one such way where great brands can actually be great brands.
Various types of advertising are:
Online advertising – It is a form of advertising in which a message is conveyed through
the use of the internet. It is effective in terms of targeting a specific group. Eg – Google
earns 60% of its revenue from running ads.
Television advertisements – It aims at mass communication to spread information and
awareness among the public. Eg – FMCG brands advertising their new product launch or
discounts through television ads.
Print advertisement – It is a form of marketing where ads are physically printed in
newspapers, magazines, brochures etc. Print ads have a wider reach but have a very short
span of life and are expensive. It is gradually a decreasing form of advertisement. Eg –
Amul giving a newspaper advertisement about its new ―Amul Taaza‖ milk offering the
best prices.
To know more about other types of advertising, click here –
https://www.business.qld.gov.au/running-business/marketing-sales/marketing-
promotion/advertising/types
2. Sales Promotion:
Sales promotions are those marketing activities that serve extra value or incentives to the sales
force, distributors or even customers to stimulate immediate sales. It helps in drawing the
attention of the customers by offering an invitation to engage in any transaction by giving them
various types of incentives. It serves as a short-term incentive to encourage the trial or purchase
of any product or service. It is a push strategy applied at a higher level to boost sales of the
product.
Types of sales promotions are:
Consumer-oriented sales – It is focused on the consumer for stimulating short term sales.
There are various methods that brands can choose for running a sales promotion like –
discounts, coupons, premium give away, sample give away, contests, two-for deals,
rebates, loyalty programs, and free shipping, etc.
Trade oriented sales – It is focused on marketing intermediaries for stimulating sales that
include distributors, wholesalers and retailers. Some of the promotional tools are – sales
contests, trade shows, merchandise allowances etc.
3. Personal Selling:
Personal selling is the most original form of marketing. It involves a person–to–person selling
where the salesperson convinces the customer about their product or service to make a purchase.
The advantage of this type of selling is that the message can be tweaked and customized to the
needs of the buyer. The focus is on building a long-term relationship with the buyer.
Companies relied on personal selling for marketing communication in the past, when media such
as television, radio, and online platforms were not as prominent. This method is slightly
expensive in some cases since it requires giving commission to the salesperson for every unit
they sell. It is a slow approach as you can communicate to only one potential customer at a time.
Types of personal selling are:
Order takers – Order takers are the ones who receive requests and queries from the
customers. In simple terms, the customer approaches these salespersons directly. They
hold positions like a telemarketer or retail sales assistant and target mainly on
determining customer needs while pointing to the required inventory that meets such
needs. Eg – You go to McDonald‘s‘ outlet and the salesperson there takes your order for
food.
Order Getters – They reach out to new prospects and persuade them to make a direct
purchase. They are on-the-field salespersons who look after bringing in new clients to
increase their business.
Order Creators: Order creators effectively persuade the customers to promote the
business proposal which leads to sales eventually. However, they are not responsible for
closing any deal. Eg – a pharmaceutical company reaches out to a doctor and persuades
him to prescribe a particular company‘s medicine.
4. Direct Marketing:
Direct marketing refers to directly communicating with your target audience/ customer to
generate a response, transaction or any purchase. It involves a variety of activities direct mailing,
fax, telephone, telemarketing etc through various forms of media. Companies maintain a
database of customer contact information from which they send catalogues and other marketing
materials, making it easier for customers to shop online. The relevance of direct marketing has
increased in recent years.
Shoppers have started relying on credit cards and online purchasing more than ever which makes
it essential for marketers to approach the consumers directly thus helping them in the purchase
process. This method is quite beneficial for those companies which use promotional codes,
discount coupons, special offers as the marketing strategies or when your business is heavily
dependent on the repurchase etc. You can send them discount coupons, catalogues, postcards, or
letters on special days for retaining customers. Eg – Under Armour, one of the leading
companies in the performance apparel market, generates most of its sales through selling its
products in sports retail stores along with its website.
5. Public Relations:
Public relations refers to evaluating public attitudes, identifying policies and procedures of the
company with the public interest and executing a program of action to earn public understanding
and acceptance towards the brand. It uses promotional tools like publicity, fundraising,
participation in community activities, sponsorship of special events etc. to enhance its brand
image. It is a strong communication tool that takes over the functions of conventional advertising
and marketing.
It is a two-way communication that can monitor feedback and adjust its message for providing
maximum benefit. A common tool used here is publicity which capitalizes on the news value of
the product or service so that the information can be disseminated to the news media. It also
possesses the capability to reach hard-to-find consumers who avoid targeted communications. Eg
– Pepsi brought augmented reality to the movie theatre bathroom. It was promoted with
#livefornow and reached a wider audience with Halloween rank.
6. Internet Marketing:
Internet marketing involves the use of the Internet and related digital technologies for achieving
marketing objectives. Interactive media allows the information to flow back and forth where
users can modify the form of content they receive in real-time.
The Internet is a multifaceted promotional tool and its interactive nature brings it to the best
advantage at use. In today‘s world, the internet is actually a medium that executes all other
elements of integrated marketing communications. Mobiles have been a huge source to reach a
mass audience just at a click of a button. Brands develop creative ways to reach their customers
even by establishing personalized applications for their companies. Eg – Starbucks developed
apps for iPhone users which allowed customers to find the nearest Starbucks outlet, recipes, look
for nutritional information and manage their gift cards.
Click here, to know more about other IMC tools.
Conclusion
Integrated marketing communication functions use omnichannel marketing with a multi-channel
approach. It attempts to create a cohesive content and marketing strategy for any business. IMC
helps you reach your customers effectively irrespective of what platform your consumer uses.
Integrated marketing communication enables all aspects of the promotional marketing mix to
work together in harmony to promote a particular product or service effectively among end-
users. Thus, it is imperative for the company to do continuous research on the current marketing
trends in the market and be open to trying out new and novel ideas for the promotion of products
and services.
1.3.Above the Line (ATL), Below the line (BTL) and Through The line (TTL) promotion
Marketing activities (basically advertisements) today can be divided into three segments – Above
the Line (ATL), Below the Line (BTL), & Through the Line (TTL) marketing.
The line was originally used to separate marketing activities which had mass penetration (above
the line) to those which had specific penetration (below the line). But then, because of the
increased competition and development in technology, emerged through the line marketing
activities which blur the line and include the use of both ATL & BTL advertising activities.
Above the Line
Above the Line marketing or ATL advertising consists of advertising activities that are largely
non-targeted and have a wide reach. ATL communication is done to build the brand and inform
the customers about the product. Conversions are given less importance in above the line
advertising.
To make it simpler-
Above the line marketing includes mass marketing strategies which are largely untargeted and
are focused on building the brand.
By ‗untargeted‘ we mean that the communication isn‘t directed towards a specific group. The
mediums convey the message to everyone who has access to them.
Television
An average American watches 4.3 hours of TV in a day. It‘s a similar case with the rest of the
world. TV advertisements have a reach from local, to national, and international audience
depending on the TV channel and the contract between the parties. TV advertisements have a
better connection with the users as moving images with audio are preferred over still images or
audio alone.
Radio
Psychologists tell us that consumers need to be exposed to an advertising message at least three
times before it begins to penetrate. No other media other than radio provide such affordability
when it comes to this frequency.
Radio is a perfect option for marketers to fulfil all the frequency and creative demands of an
advertisement. Radio to have a local, national, and international reach just like TVs.
Print Advertisements (magazine & newspaper)
Local, regional and national print media has a wider reach than any of the other mediums.
Newspapers have fixed ad-slots that are used by marketers to inform customers / prospective
customers about the brand or offers.
Magazines exist in niches and make it easier for marketers to reach their niche directly through
them.
Wider Reach: Above the line advertising mediums have a wide (national/international)
reach.
Better Connect with the audience: The mediums like TV and radio use audio-visuals
which have a better connect with the audience.
Brand Building: Media advertising is a crucial tool in defining and realizing brand
identity. A brand is built by the customers. The role of marketers in brand building is to
reach as many prospective customers as they can and communicate to them about the
brand and its benefits creatively. Above the line marketing, hence, plays an integral role
when it comes to brand building.
Below the Line
Below-the-line marketing or BTL advertising consists of very specific, memorable and direct
advertising activities focused on targeted groups of
consumers. Often known as direct marketing strategies, below the line strategies focus more on
conversions than on building the brand.
To make it simpler –
Below the line marketing includes direct marketing strategies directed to specific target groups
and focused on conversions rather than building the brand.
Examples of Below the Line Promotion
One of the most personal strategies used by marketers, direct mails (e-mails, text messages, etc.)
are tailor-made messages about the brand or different offers drafted according to the needs of
each customer. Hence this BTL strategy could result in more conversions if planned properly.
Sponsorship
Sponsorship is a partnership with different corporates or events to get more impressions and is
usually carried as a part of brand building strategies at a BTL level.
Brand Activation
Brand Activation is the art of driving consumer action through brand interaction and
experiences. The key aim of these campaigns is to get consumers to act and to bring brands to
life via experiences and forming long-term emotional connections.
In-Store Marketing
Marketing activities done within the retail store are called In-store marketing activities. These
below the line activities make use of various point of sales to get the most return out of the
investments.
Extremely Targeted: Conversions are better when the communication is done according
to the customer wants. Since BTL marketing strategies are extremely targeted, results are
better in terms of conversions.
Better ROI: Below the line promotional efforts are focused on the specific target group,
have a better reach, can be easily executed, tracked, and controlled. Hence BTL strategies
provide a better ROI and MROI in terms of conversion.
Easy Control: The return from these activities can be easily tracked and monitored and
steps can be taken to improve ROI.
Tailor-Made: Below the line advertising strategies are designed according to the needs
of a specific target group and hence can be moulded differently for different customer
groups.
Through the Line
Through the Line marketing or TTL advertising involves the use of both ATL & BTL marketing
strategies. The recent consumer trend in the market requires the integration of both ATL & BTL
strategies for better results.
To make it simper-
Through the marketing involves marketers to create marketing campaigns which include both
ATL & BTL strategies. It refers to 360-degree advertising where campaigns are developed with
the vision of brand building as well as conversions.
Sometimes above the line strategies are used to execute their direct
360° Marketing
Marketing strategies can be planned and carried out with an integrated approach of using both
ATL & BTL advertising mediums to get the maximum advantage. Most of the
marketing campaigns today are TTL campaigns.
Digital Marketing
It is possible to carry out a digital marketing strategy which offers above the line marketing
benefits while acting as a below the line communication to the customer. This type of advertising
is cookie based. Users get highly personalized communication based on their
needs/wants/choices. This strategy has a better ROI and is considered better by the consumer.
In simple terms, pull marketing involves putting in place and implementing strategies that
automatically draw consumer interest to your products and services, while push marketing means
pushing your brand in front of your potential customer or making it available to the general
audience.
Push and pull marketing are the two core principles for guiding your marketing strategy. Before
choosing which of the marketing strategies to go for, you have to identify what the long-term and
short-term goals of your business are. This will guide you in choosing whether to use the push
marketing strategy or the pull marketing strategy.
Push marketing is a form of a promotional strategy whereby business owners and brands try to
take their products and services directly to the customer. Push marketing involves all the tactics
that a seller deploys in pushing their goods and services to the potential consumer. With this
strategy, you as the seller create awareness for your brand and, at the same time, place the
product directly in front of the buyer. Push notification can be used to get your product across to
the buyers.
Business organizations use the push marketing strategy whenever they want to launch a new
product, or when they want to stand out and get special patronage in a crowded market, they can
use the push notification feature. For example, an electronic showroom can use the pull
marketing strategy to get a buyer to purchase a new gadget. Let's say a new washing machine has
just been launched and introduced to the market; the sales department is approached to help push
the new washing machine to customers. So when a customer comes into the showroom, even
when they do not inquire about the washing machine, your salesperson stylishly rolls out the
mouth-watering functions of the washing machine and its advantage over other types of washing
machine, this arouses the interest of the customer, and they may eventually buy it. The sales
department gets a sales incentive in return for pushing your product onto customers.
Most times, push marketing is good for new products and customers with a first-time experience.
Pull marketing is a marketing tactic whereby you get the customers to come and patronize your
products and services. Pull marketing ensures that some conditions are put in place to ensure that
customers come looking for your brand. I.e., you attempt to pull customers into making
purchases.
Pull marketing tactics include advertising, mass media promotion, sales promotion and verbal
referrals. Pull marketing is focused on a long-term consumer-manufacturer relationship; it
attempts to create brand loyalty and ensure customers keep patronizing the brand. Pull marketing
requires a lot of advertising to create enough awareness and get potential customers interested in
your products and services.
For example, an automobile industry can advertise its product on the television by showing how
fast it can move, how economical it is in fuel consumption, how strong it is in case of accident or
a head-on collision, and how comfortable the interior is with beautiful aesthetics. This
advertisement is not targeted at a particular person or audience; it is for the general public, but a
larger percentage of those that watch this advertisement will be interested in the automobile
brand, and whenever they want to buy a new vehicle, your brand would top their list. Sometimes,
it might be the car features that will pull the customers to your brand and purchase the vehicle.
It is important to know that there is not much difference between pull marketing and push
marketing. However, the few ones are;
1. In pull marketing, the tactics are deployed towards pulling your customers to patronize
your products and services, while in push marketing, the tactics deployed is to push your
products and services to these customers
2. Pull marketing involves a wider approach and is capital intensive because you have to
ensure the awareness about your brand gets as far as possible, while push marketing, on
the other hand, involves a minimal approach and less cost. Once the customer comes into
your store or enquires about the products or services, you make it available to them.
3. Another difference between push and pull marketing is that the pull marketing strategy is
geared towards long-term goals and continuous patronage, while the push marketing
strategy is geared towards short-term and immediate patronage of the goods and services.
Business organizations tend to achieve their desired result and actualize their goals by focusing
on a multi-channel approach. Brands that adopt the push and pull marketing strategy get their
return on investment and are always successful. In a tweet by mention share, ―71% of consumers
prefer the pull marketing techniques, including recommendations, reviews, social media and
online search.‖
A push notification is a web-based or in-app message that pops up on the screen of your mobile
device or personal computer. Apps majorly use push notifications to engage users and provide
more value.
You can enable the push notifications on your devices and disable them. The apps seek your
permission to access your notification server and always send a push notification, and when you
grant the access, the application can send you push notifications at any time. It is not only
applications that use push notifications; business organizations with a web page or mobile app
can also use the push notification feature.
There are several reasons why push notifications are important. They include;
These statistics show that one of the best-proven ways to attract user attention is push messages.
Even so, the statistics also show that the amount of push notifications you are likely to receive in
a day is quite high, and you might not be able to check them all before clearing them.
2.Increase Users Engagement
Push notifications help to increase user engagement. When users are going through their devices
and a push notification pops up, their attention is focused on that new notification, and they are
likely to click on it. This way, they engage with the brand and carry out the command prompt
displayed on the push notifications.
Also, push notification increases engagement by using the opt-in feature. Opt-in is an inbound
marketing approach in which a marketer solicits a potential customer‘s permission to access their
notification server and send them promotional or other types of content about a brand. Push ninja
is a push notification software with an opt-in feature to set up your push notification.
Another way to drive traffic to your website or generate traffic on your mobile application is
push notifications. When you send out a personalized, captivating and time-sensitive push
notification, the users that receive it will be tempted to click on it, and it will redirect them to
your webpage or web store. When a large number of those that receive the push notification click
on it, enough traffic is generated to your website.
Most times, people do not remember to visit a web store or check out an application after
downloading it and this way, they do not know what your brand is all about or the products and
services you are offering via your mobile app. However, when they receive the push
notifications, it serves as a reminder to check the web store, and when they see what interests
them, which is the reason for downloading or checking it in the first place, they can make a
purchase. This leads to a conversion from a potential customer to a real customer and also
retaining your existing customer who might have patronized your brand in the past and is coming
back as a result of the push notification.
Having discussed the importance of a push notification to your business and brand, it is essential
to highlight the two types of push notifications. They are;
In-app Push Notifications: The in-app push notifications are also called mobile notifications.
Mobile phone users who downloaded a mobile app and granted access to the apps to send them
notifications receive the in-app push notifications.
When you click the in-app push notifications feature, it directs you to specific tasks such as
accessing timely updates, receiving brief instructions regarding the mobile app, new message
notifications and a host of others.
Web Push Notifications: The web push notifications are also called browser push notifications.
These notifications pop up on your personal computer or desktop screen.
Like the in-app push notifications, the web push notifications also require the user to grant access
or give permission before your notification server can allow push notifications from the brand.
Web push notifications are mostly used for marketing purposes.
Promotion coupons, new stocks, updated education materials and articles are some of the
messages displayed via the push notifications. Also, you can add images, personalization and
other extra features to the web push notification using the PushNinja, a push notification
software.
Conclusion
The main difference between push and pull marketing lies in how you approach the customers.
The push notification is another smart innovation that allows you to send a message-like
notification that pops up on your mobile device or Personal computer screen. To build
customized and personalized push notifications, schedule them, track the response and
conversion generated by your push notification, software such as PushNinja developed by
500apps is the best to deploy.
Q1. Explain the difference between the pull and push marketing strategies. ,
Unit No: 2 Advertising-
Functions of Advertising:
6. To enhance the goodwill of the enterprise by promising better quality products and
services.
Functions of Advertising:
Advertising has become an essential marketing activity in the modern era of large-scale
production and severe competition in the market.
Significance of Advertising:
Advertising helps in spreading information about the advertising firm, its products, qualities and
place of availability of its products and so on. It helps to create a non-personal link between the
advertiser and the receivers of the message.
The significance of advertising has increased in the modern era of large scale production and
tough competition in the market. Advertising is needed not only to the manufacturers and traders
but also to the customers and the society. The benefits of advertising to different parties are
discussed in the following paragraphs.
(ii) Advertising develops new taste among the public and stimulates them to purchase the new
product through effective communication.
(iii) Advertising assists to increase the sale of existing products by entering into new markets
and attracting new customers.
(iv) Advertising helps in creating steady demand of the products. For instance, a drink may be
advertised during summer as a product necessary to fight tiredness caused by heat and during
winter as an essential thing to resist cold.
(v) Advertising helps in meeting the forces of competition in the market. If a product is not
advertised continuously, the competitors may snatch its market through increased
advertisements. Therefore, in certain cases, advertising is necessary to remain in the market.
(vi) Advertising is used to increase the goodwill of the firm by promising improved quality to the
customers.
(vii) Advertising increases the morale of the employees of the firm. The salesmen feel happier
because their task becomes easier if the product is advertised and known to the public.
(viii) Advertising facilitates mass production of goods which enables the manufacturer to achieve
lower cost per unit of product. Distribution costs are also lowered when the manufacturer sells
the product directly to the customers. Advertising also facilitates distribution of the product
through the retailers who are encouraged to deal in the advertised products.
Benefits to Customers:
Advertising offers the following advantages to customers:
(i) Advertising helps the customers to know about the existence of various products and their
prices. They can choose from the various products to satisfy their wants. Thus, they cannot be
exploited by the sellers.
(ii) Advertising educates the people about new products and their diverse uses.
(iii) Advertising increases the utility of existing products for many people adding to the amount
of satisfaction which they are already enjoying.
Benefits to Society:
The whole society is benefitted because of advertisement in the following ways:
(i) Advertising provides employment to persons engaged in writing, designing and issuing
advertisements, and also those who act as models. Increased employment brings additional
income with the people which stimulate more demand. Employment is further generated to meet
the increased demand.
(ii) Advertising promotes the standard of living of the people by increasing the variety and
quality in consumption as a result of sustained research and development activities by the
manufacturers.
(iii) Advertising educates the people about the various uses of different products and this
increases their knowledge. Advertising also helps in finding customers in the international
market which is essential for earning foreign exchange.
(iv) Advertising sustains the press, and other media. It provides an important source of income to
the press, radio and television network. The customers are also benefitted because they get
newspapers and magazines at cheaper rates.
Corporate advertising
Corporate advertising is a promotional strategy that is designed to not only interest consumers
in products and services offered by the company, but also to cultivate a positive reputation
among consumers and others within the business world.
Surrogate advertising
Surrogate advertising is a form of advertising which is used to promote regulated products, like
cigarettes and alcohol, in the disguise of another product.
It is a strategy where the marketers advertise and promote banned products in the disguise of
some other substitute product.
Let‘s elaborate this further with the help of an example. Have you ever seen a Carlsberg Club
glasses advertisement? An advertisement for glasses sounds strange, right? But in reality, it‘s not
the glasses that it promotes, it indirectly promotes Carlsberg beers. Beer, being an alcoholic
drink, cannot be promoted directly. So, introducing a substitute product is a way of creating
brand awareness.
Not all products get a chance to be featured on advertising platforms. There is a prohibition on
the marketing of some of the products. So marketers have a solution for this as well, and that is
Surrogate Marketing. The marketer remains with the only option of advertising in the disguise of
another product of their brand.
These are some brands and the surrogate products they show in advertising.
Brand Surrogate
Carlsberg Glasses
Social advertising
Social advertising is advertising that relies on social information or networks in generating,
targeting, and delivering marketing communications. ... Social advertising can be part of a
broader social media marketing strategy designed to connect with consumers.
Social advertising is a type of advertising that promotes brands by serving social interest causes
by using relevant mediums. Nowadays, social advertising preferably uses social media platforms
to reach target audiences and fulfill its goals.
It is a method of advertising that revolves around clickable advertisements to widen the brand‘s
presence and aware audiences for some non-commercial objectives to optimize brand
reputation target audience through social networks/media platforms. Companies use the
campaign of Social Advertising to market the brand awareness, know the sales revenue and
create leads.
Definition: Social advertising is defined as a type of advertising used to optimize social interest
causes to fulfill non-commercial objectives, channel social development, and optimize brand
awareness by using relevant mediums.
Social media platforms provide brands and companies specific and valuable user data, which
helps them maintain social relationships with customers to increase public awareness.
The social networks are rich in data and personalized information of the customers. Therefore,
the messages or ads sent through Social Advertising stand an excellent chance to connect
with people and expect an immediate response from them.
Emotional ad appeal will positively influence hedonic value. On the other hand, utilitarian
value refers to consumers' assessment of the market.
Marketing and ad executives seek to make the consumer feel good about the product by
linking positive emotions to it, resulting in increased brand likeability
Campaigns with rational tone of appeal are designed to provide information ... Emotional
advertising appeals can be positive or negative, . attempts to assimilate the current thinking on
the use of emotional appeals in advertising, positioning and communication in order to build a
favorable attitude towards a brand. It elucidates the areas where emotional appeals would work
best, while pointing out the possible pitfalls in employing such a strategy across the board.
Further, an attempt has been made to interpret the current body of knowledge on the subject and
create a context for general application of emotional appeal in advertising. The paper identifies
products and services for which emotional advertising appeals will be more suitable. It also
elaborates the risk involved in using emotional appeals. Factors influencing effectiveness of
emotional appeals are discussed in detail and guidelines are drawn for effective use of emotional
appeals. The authors have suggested future direction of research in the area of use of advertising
appeal and its influence on brand attitude formation.
The great thing about hearing a customer or a potential customer raise an objection is that the
customer is giving you a signal that he/she wants to be assured or reassured that advertising with
you is a good idea. Typically, customers don‘t come out and object. Rather, customers, when
probed with solid, open ended questions, provide you with an opportunity to do what you do
best; sell. The answers that follow are based on a set of assumptions. We always recommend
asking more questions before answering any of these to make sure that we are not assuming
anything. It is also important to ask questions as many of these questions could be a result of
misconceptions from the advertiser, uncovering the real objection should be the main focus of
the conversation. In advertising sales, there is no ―one size fits all‖ answer. However, the points
below should add to your ability to meet needs.
Examples: Your rates are too high. A costperthousand readers‘ analysis often shows that
advertising in newspapers is cheaper than advertising on radio or television. Even so, if
advertising in your local newspaper is still more than you can afford, consider coop advertising
where your supplier shares the cost of advertising with you. Co-op can double your ad‘s pull and
reduce the cost by up to 50 percent.
Objections on Advertising
ASCII guidelines for the advertisers and celebrity endorsers
Subject advertisement (mentioned as ―advert‖) should not violate any of the ASCI code i.e.
product/service should be honestly represented, should not be offensive to public, should not
promote harmful products or substances and observe fair competition.
Celebrities act as influencers to a common consumer. With a large population of India, living in
villages, a celebrity endorsing a product or service, serves as promise of quality and builds
instant recognition and credibility. In many cases, the benefits of product or claims made in
adverts may be misleading or not supported by any data. To check this indiscriminate
endorsement by celebrities without carrying out due diligence, ASCI (Advertising Standards
Council of India) in April 2017 released Guidelines for Celebrities in Advertising. These
guidelines are directed to both Advertiser and Celebrity to ensure that:
Subject advertisement (mentioned as ―advert‖) should not violate any of the ASCI code
i.e. product/service should be honestly represented, should not be offensive to public, should
not promote harmful products or substances and observe fair competition.
Testimonials, endorsements or opinions in advert must reflect genuine and reasonably
current opinion of the individual(s) making such representations and should reflect adequate
information about or experience with the product/service.
Due diligence is done to ensure that all description, claims and comparisons made in the
advert can be substantiated and are not deceptive/misleading. Celebrity can seek advertising
advice[1] from ASCI to ascertain violations in advert, if any which can be construed as due
diligence.
No product/ treatment/ remedy which are prohibited under the Drugs & Magic Remedies
and the Drugs & Cosmetics Act should be endorsed by celebrity.
No tobacco based products or products bearing health warning should be endorsed by
celebrity.
Since these guidelines have been framed, the onus is on the celebrities to recluse themselves
from endorsing a product or service which propagates absurd products such as fairness creams,
slimming capsules, etc. and/or products where the claims remain unsubstantiated and desired
results may not be attained.
Over past two years, several advertisements endorsed by celebrities have come under scanner. A
few of them where complaints were filed with ASCI and the complaints were upheld against the
brand and its advert are summarized below.
A number of complaints were filed against the television commercial of motorbike ‗Hero
Xtreme 200r‘ by Hero MotoCorp Ltd. which was endorsed by sports (cricket) celebrity, Virat
Kohli. The complaints were received from governmental bodies, Supreme Court committee,
consumer organization and end users with prime concern of road safety wherein Virat Kohli
was shown to ride the bike dangerously flouting traffic rules. The CCC (Consumer
Complaints Council) upheld the complaints. The advertiser agreed to revise the television
commercial; however proposed revisions did not address all the objections raised by the
complainants. Since the complaint was received from the Supreme Court Committee on Road
Safety, this complaint was not treated under Informal Resolution (IR) mechanism, and was
processed extensively. The CCC concluded that the television commercial portrayed
violation of the traffic rules, showed dangerous practices and manifested a disregard for
safety. Such television commercial encouraged unsafe/ reckless driving which would harm
the driver and general public. While it contravened ASCI Code, clauses (a) (b) and (c) of the
ASCI Guidelines for Advertisements depicting Automotive Vehicles and was found to be
violating Clause (b) of the ASCI Guidelines for Celebrities in Advertising.
The CCC upheld a complaint filed against ‗surrogate advertisement‘ by liquor brand,
Officers Choice Blue which was being endorsed by sports (cricket) celebrity, MS Dhoni. The
advertisements were concluded to be misleading by implication and contravened ASCI Code
and also did not meet the requirements of the ASCI Guidelines for Qualification of Brand
Extension Product or Service.
Complaint was filed against Frankfinn Aviation Services Pvt. Ltd.‘s television
commercial claiming to be ―World‘s No. 1 Airhostess Training Institute‖ featuring Alia
Bhatt. The CCC concluded that the claim, ―World‘s No. 1 Airhostess Training Institute‖, was
not substantiated with verifiable comparative data of the advertiser‘s institute and other
similar institutes worldwide to prove its leadership position or through a third party
validation. The claim was misleading by exaggeration and was likely to lead to grave or
widespread disappointment in the minds of consumers. The television commercial was found
to contravene Guidelines for Advertising of Educational Institutions and Programs, ASCI
Code and clauses (c), (d) of the Guidelines for Celebrities in Advertising. The complaint
was upheld.
Q1. Explain the ASCII guidelines for the advertisers and celebrity endorsers with examples.
Q2. What are the various IMC Challenges? Justify with case study.
Unit No: 3 Media mix
3.1. Types of media- Print, broadcast – Television and Radio, Outdoor, Transit, Social Media-
Facebook , Instagram, Twitter etc. Media mix planning and scheduling 08
Media can be classified into four types: Print Media (Newspapers, Magazines) Broadcast Media
(TV, Radio) Outdoor or Out of Home (OOH) Media.
Media mix planning and scheduling
Media planning includes all such decisions like selecting appropriate media, appropriate media
mix and deciding the scheduling of advertisement. All these decisions help the organization in
achieving advertising objectives, i.e. to communicate the message to target audience and thus to
promote sales.
With a thorough media planning strategy in place, teams can more accurately and
... schedule over the course of the campaign: for example, two ads per week.
Media planning and selection are of top significance once the advertising goals and the
organisation have been set. Media planning and selection deals with media identification,
identification of factors governing media and vehicle choices, laying down criteria for media
selection and evaluation of each media against another, developing media-mix, resources
allocation and media scheduling.
Media selection is possible when one knows about the ‗reach‘ and ‗impact‘ of each medium and
media vehicle. Media planning, therefore, is the study of different advertising media and media
vehicles in depth that facilitates media selection and development of media-mix that is most
suitable for the firm in question.
A ‗medium‘ is the carrier of advertising message. It is the means to deliver the advertising
message. Each advertiser is to go in for right massage carrier or a set of carriers keeping in mind
the cost, efficiency and specialties of the medium or media.
Every advertiser has good many media for his selection. Broadly, these can be classified as
indoor, outdoor, direct and display. Each media has sub carriers called vehicles.
(2) Magazines
(3) Radio
Here, the message reaches the audience indoors when it is cozy and in receptive mood
because, house is the resting place for the inmates to relax.
1. Newspapers:
Life without newspapers is like life without a cup of tea or coffee. Newspaper is one that gives
news, views, interpretations, opinions, comments and explanation regarding social, economic,
political, cultural, moral, ecological, meteorological and wide variety of walks of fast changing
life. In India, there are 21 major languages, published in 91 languages, India has 20,000
newspapers. For every 40 literate persons there is one paper.
2. Quick response.
5. Economical.
3. Waste in circulation.
4. Possibility of duplication.
2. Magazines:
Magazines are the periodicals published weekly, fortnightly, monthly, quarterly and annually.
They cover a wide variety of topics providing light leisure reading in easy chairs. Well known,
though provoking and authentic articles from almost all branches of human knowledge are given
along with entertaining items like puzzles, cartoons, comics and the like.
Indian magazine-world supplies at present 4,200 weeklies, 2,000 fortnightlies, 7,800 monthlies,
400 quarterlies and 10,000 annual numbers totaling 22,600. For every 35 literate persons, there is
one such magazine.
2. Visual display.
3. Selectivity.
5. Geographic flexibility.
2. Waste in circulation.
3. Costlier.
4. Restricted frequency.
3. Radio:
Radio advertising can be aptly called as ‗word of mouth‘ advertising on a wholesale scale which
was accepted in 1920. It has a history of 71 years to-date. India, as a late beginner, started
commercial broadcasting only in 1967 by now radio has covered 100 per cent of population. At
present, there are 175 medium wave transmissions, 60 short wave transmitters and 110 F.M.
transmitters.
At present, there are 60 million sets which work out a set for every two people. The
advertisements may be straight commercials dialogue, commercials dramatised , commercials
integrated commercials and musical commercials.
3. Mass coverage.
4. Economy and
5. Selectivity.
2. Lack of illustration.
3. Limited time.
4. Wastage.
4. Television:
Radio ruled the scene between 1920 and 1970. Its greatest and latest rival has been television
that smashed its supremacy from 1950s.
In India, it was commissioned for the first time in 1959 and went commercial in 1976 and
transformed into colour in 1982. By now, 90 per cent of the population is covered by the way of
television.
We have 10 million sets working in India giving a figure of one set for every 100 people.
Television advertisements are called as television commercials lasting for 10, 15, 20 and 30
seconds. These may be ‗stop motion‘, ‗puppets‘, ‗cartoons‘ or ‗line-action type‘.
2. Costlier.
4. Time taxing.
5. Film advertising:
Film advertising is yet another medium of publicity characterized by sound, motion, colour,
vision and timeliness. This audio-visual medium has a wide range of exhibits starting from an
ordinary slide presentation to the ad films screening.
Slide is the protected glass piece covering ad message. The films shot and screened are
‗filmlets‘, ‗solus‘ and ‗magazine‘ type. They are in the time range of 15 second to 300 seconds.
In India, Blaze Advertising Agency takes film production and distribution.
The exhibition is done by theatre owners. There are 6,000 cinema towns with 15,000 permanent
cinema houses with an average capacity of 1,000 seats. There are 3,000 touring theatres with the
average capacity of 450 seats.
Of late, the importance of cinema has been reduced as India has more than 3 million sets of
VCRs and VCPs. and 1 lakh video parlours.
2. Interjection.
3. Limited coverage.
4. Clutter problem.
Its strength is tremendous because, 97 per cent of the total adult population moves out of doors
every week. Its vehicles are: posters, printed displays, electric signs, travelling displays, sky
writing, sandwich men and the like.
A ‗poster‘ is a sheet of paper pasted on a wooden or a card or metal board depicting the ad
massage. It can be standardized or non-standardised as to size and colours.
The success of poster rests on poster designing and the site of pasting. A ‗printed display‘ is the
painted bulletin and the wall painting. It is standardised metal sheet of rectangular shape hung on
hoarding stands at strategic places.
An ‗electrical sign‘ is a spectacular sign giving light effects, creating charming and enchanting
scene in the dark. A ‗travelling display‘ is an advertising sign seen in and outside travelling
vehicles like train, buses, car, taxis, trams, autos and the like.
A ‗sky writing‘ is a kind of publicity where message is spread in the sky in the form of a smoke
or fire-workers nor the lights. A ‗sandwich-men‘ advertising is the team of tall and dwarf men
singing and spending the ad message and is the oldest and the simplest of all vehicles of outdoor
advertising.
Q1. Describe the various kinds of publicity, it merits and demerits with relevant examples.
Unit No: 4 Sales Promotions
1. Increase in Sales Volume 2. Launch New Product and Increase Trial 3. Encourage
Repeat Purchase 4. To Block Competitor‘s Moves 5. Encourage Dealers to Participate
in Display and Sales Contest 6. Deflect Customer‘s Attention from Price 7. To
Supplement Advertising and Personal Selling Efforts.
The basic purpose of sales promotion is to increase the sales of a product by creating
demand. Sales promotion has a capability to complement and supplement the advertising
functions of the marketing.
It helps marketers to realize a variety of objectives. These objectives are for both
marketers and traders.
Sales Promotion Objectives: Increase in Sales Volume, Encourage Repeat Purchase and To
Block Competitor Moves
Sales Promotion Objectives – Top 7 Objectives: Launch New Products and Increase Trail,
Encourage Dealers to Participate in Display and a Few Other Objectives
There can be a number of sales promotion objectives, depending upon the firm‘s policies,
marketing objectives, nature of the product and its stage in product life- cycle, level of existing
and anticipated competitive activity, consumer response pattern, economic conditions, and the
target group (consumers, traders, or sales force), etc.
Sales promotion objectives could be either proactive or reactive.
The most common objectives under proactive category are:
i. To gain additional market share or additional revenue.
ii. To expand the target market.
iii. To develop favourable consumer experience with the product.
iv. To add extra value to the product and develop brand franchise.
Reactive sales promotion objectives are developed in response to some unfavourable market
situation or where the objectives are essentially short term, such as the following-
i. In response to competitive moves.
ii. When excessive inventory poles up.
iii. To generate short-term cash.
iv. When the decision is to discontinue a product, or close down the business.
Some of the important objectives are mentioned below, and the more important ones have
been discussed briefly and can accomplish many sales promotion objectives:
i. Increase sales volume
ii. Speed up the sales of slow moving products
iii. To check the fluctuations in sales
iv. Attract new customers
v. Launch new product and increase trial
vi. Encourage repeat purchase
vii. Clearance of excessive inventories
viii. Motivate dealers
ix. Encourage dealers to participate in display and sales contests
x. To gain advantageous shelf-space
xi. To increase store traffic
xii. Improve relationship with dealers
xiii. To block competitors‘ moves
xiv. Motivate sales force
xv. To supplement advertising and personal selling efforts
Generally, the brand switchers or marginal buyers, who buy when a product is on promotional
deal, contribute more toward increasingly sales volume. One possibility, though, cannot be
ignored that these brand switchers sometimes get exposed to better products and some of them
may become repeat purchasers, almost every sales promotion that offers immediate value at the
time of purchase may contribute to increasing sales-volume.
These immediate value promotions can be directed toward those who like trying new products,
and those who are regular users of the product. Such promotions can be particularly useful in
new markets, and can also be used to introduce a sense of urgency in consumer or the trade to
buy the product now.
Objective # 2. Launch New Products and Increase Trail:
Small budget companies who cannot afford sustained advertising expenditures to introduce new
products, or match the competitive advertising blitz, find sales promotion to be more cost-
effective and helpful in generating more sales volume. Companies, who have small market share,
cannot match the substantial advertising budgets of market leaders in the same industry.
It is also difficult for smaller companies to get proper shelf-space in retail shops without offering
incentives to the re-sellers, or encourage trail by consumers without offering some immediate or
extra benefit. A free sample, along with a new product by consumer, and may also lead to
purchase of the regular pack from the market. A free sample is generally welcome to almost all
consumers and increases the probability of trail, and in some cases, purchase as well.
A number of personal care products, such as shampoos, cosmetics, toilets soaps, or laundry
products, such as detergent powders and cakes etc., have been introduced successfully in the last
few years. Colgate Palmolive launched ‗Palmolive‘ toilet soap in 1989. Its sales in Chennai,
which is one of the largest markets for toilets soaps, were below all India levels.
Market research studies revealed that the cause of below-level acceptance was inherent
conservatism of the consumers in this market. They do not change brands easily, and consumer
awareness and trial was low, despite heavy advertising. The trial retention ratio suggested that
once consumers tried ‗Palmolive‘ soap, they liked the quality and stayed with the brand. During
four-month period (February-May 1990). Promoters called on about half a million households in
this city.
To encourage consumers to buy from the promoters, a stainless steel teaspoon was given with
only one cake of ‗Palmolive‘ soap; subsequent cakes were sold on a marginal discount. The
focus was on an incentive, which would ensure trial of even one cake. For this period dealer
were hired to place attractive displays to make ‗Palmolive‘ soap a highly visible brand in the
windows of retail stores.
Sales increased substantially in March, and informed people say, it almost doubled by the end of
the April 1990. Product adoption increased just by stimulating trial rate by consumers, leading to
growth in sales which was maintained subsequently. Samples distributed free, with or without a
coupon, are often used to introduce a new product or induce trial of even an existing product by
consumers.
Small budget firms have to exercise extreme caution and use such promotion judiciously,
because this may prove to be quite expensive proposition. For them, it would be appropriate to
choose selected markets with high potential.
Objective # 3. Encourage Repeat Purchase:
Repeat purchase by customers, leads to increased sales volume. Such sales promotions are
communicated to encourage existing consumers to forward- buy, for example, promotions, such
as ―get one free on purchase of four‖. Frequent-flier offer by some airlines is one such scheme,
where the customer is allotted certain number of points, and on collecting specified points, gets a
free offer of value.
Some promotions offer free merchandize or cash refund offer by collecting tokens on purchases
of a specified value. In the month of January 1983, ―Nescafe‘ announced a consumer contest.
Contestants were required to suggest one word as a prefix or suffix to describe ‗Nescafe‘. There
was no limit on the number of entries one could send. The only condition was that with each
entry the contestant must enclose an empty pouch of 50 gm. ‗Nescafe‘ as proof of purchase.
There were 1565 prizes to be won. An independent panel of judges was to select the most
appropriate entries for different category of awards. The first prize was Rs. 200,000. Regular
users of coffee, or even occasional users, responded with enthusiasm, because not only the
contest was exciting, the prize money too, were quite substantial.
Objective # 4. To Block Competitor Moves:
The product should be such that it can be stocked without occupying much space. There should
be reliable information about the competitive moves, and the inventory holding costs should not
be high. Detergent powders and cakes, toilet-soaps, shampoos, oral care products, and other non-
durable products, which are consumed everyday, may respond well to such promotions. This
objective may also be accomplished for certain consumer durable goods in case of trade
segment.
Objective # 5. Encourage Dealers to Participate in Display and Sales Contests:
An important objective of sales promotion is to encourage re-seller participation in displays and
contests. Display is a powerful tool to enhance sales. Displays attract consumer attention who,
are passers-by, or window shopper, displays serve them as reminders, encourage unplanned
purchases, and increase store traffic.
The space available for displays in retail store and display material, number of displays is
limited. Generally in an average store there may not be more than ten or fifteen items that get
major display spare at any given time. Generally these displayed items generate a higher sales
volume.
Contests are used to motivate dealers. A certain sales quota is fixed for dealers, and those who
exceed the quota by a specified margin or by the largest margin are awarded cash or
merchandise, and often a certificate too.
Objective # 6. Deflect Customers Attention from Price:
Price increase can often have a negative effect on sales. Marketers can develop appropriate sales
promotion to accomplish the objective of reducing the negative impact on sales, if the price of
the product was Rs. 50 before the price rise, and the new price is Rs. 60, then a coupon with a
face value of Rs. 5 is provided that places the product‘s price between Rs. 50 and Rs. 60, making
the effective price only Rs. 55.
When the coupon would be available, the new price does not appear to be so high relative to the
new price of the product. Consumers develop a new reference price for the product and the
increase does not appear to be as high as it was perceived earlier. Of course the coupon should be
of immediate value, instantly redeemable ―on-package‖, or the discount should be given at the
time of purchase.
Objective # 7. To Supplement Advertising and Personal Selling Efforts:
A company‘s objectives can be to enhance the attention getting power of advertising and put
power in personal selling efforts of the sales force. A coupon or a premium offer in a print
advertisement increases the attention getting ability of ad. When consumers see in bold print
―FREE‖, their attention is focused on the advertisement.
They may read not only the headline but also the copy, and may get exposed to the advantages
and benefits associated the brand. Bowman (1980) cited the evidence indicating that print
advertisements containing coupon are more likely to be noticed and recalled than are the same
advertisements not containing coupons.
Sales Promotion Objectives – For both Marketers and Traders
These objectives are for both marketers and traders.
Following are the Objectives of Sales Promotion:
i. It improves the performance of middlemen and acts as a supplement to advertising and
personal selling.
ii. It motivates sales force to give desire emphasis on new accounts, latent accounts, new
products and new territories.
iii. It increases sales and makes sales of slow moving products faster and stabilize fluctuating
sales pattern.
v. Motivating the dealers to buy high volumes of products and push more of the brands that are
on promotion.
vi. Supporting and supplementing the advertising and personal selling efforts.
ix. Inducing retailers to promote the brand by local advertising and POP display.
x. Sales promotions motivate the salesmen to sell more and to sell the full line of products.
xi. To reduce the perception of risk associated with the purchase of a product.
Sales promotions encourage the customers to try a new product. For example, companies
distribute free samples of their new product. To attract new customers distribute free sachets to
households. Some companies offer a free pack with purchase of a product like free soap with
purchase of detergent. Henko detergent introduced scratch card scheme in which customers
usually received discount coupons so that customers buy the same product (Henko detergent)
again. These encourage the customers to use the product or service and make them brand loyal.
A coupon is a ticket or document that can be exchanged for a financial discount or rebate when
purchasing a product.
Coupons are hot and the state of the economy has much to do with their popularity. Article after
article about saving money mentions using coupons. And consumers are following their advice.
You don‘t have to look any further than the Promotion Marketing Association (PMA) Education
Foundation, Inc. for proof that coupons work for consumers. Their figures show that in the first
half of 2011, consumers saved a whopping $2 billion though the use of coupons.
The NCH Vice President of Marketing backs up this figure. According to him, coupon
redemption volume continued to show a marked increase in the first half of 2011.
A coupon is a ticket or document that can be exchanged for a financial discount or rebate when
purchasing a product. Coupons offer instantly redeemable savings on certain products. That
means that consumers get an instant reduction on the price at the point of purchase. They don‘t
have to send anything to the manufacturer, they don‘t have to enter any type of contest. They
walk away from the store with the satisfaction that they have saved money.
Coupon programs offer a host of benefits. They can:
Increase the number of new customers – A customer may try a product just because they
have a coupon for it and like it enough to continue to buy it.
Build brand awareness – A consumer sees the brand name on the coupon even when the
coupon is not redeemed.
Reward current customers – Customers are delighted when they receive the gift of savings
from the manufacturer of a product that they buy regularly.
Create the opportunity for the marketer to up-sell a more profitable product
Coupons, though, can have both advantages and disadvantages. The optimal scenario for
marketers is that coupons create brand awareness without consumers using the coupon. In fact
most coupons are never redeemed. This makes marketers happy as there is no reduction in
revenue. A reduction of revenue, however, is just one of the disadvantages of a coupon program.
Others include:
Mass-cutting
Counterfeiting
Misredemptions.
You probably run across coupons on a daily basis. Open your mailbox and you‘ll see direct mail
containing coupons. Look on the Internet and you‘ll see coupons that can be distributed
electronically. A product that you buy may actually have a coupon on the package or you might
go shopping and be happily surprised to find a pad on the shelf containing product
coupons.Creating Effective CouponsEven though marketers may be happy to not have coupons
redeemed, that is not the objective of issuing coupons. You do want to lure consumers to redeem
the coupon. That‘s how you get noticed in the sea of other offers.To accomplish that goal
coupons must be created with clear, precise text that shows the:
Face value
Product image
Legal copy
Expiration date
You will not be able to judge the effectiveness of your coupon campaign without testing and
measuring it. Tracking codes let retailers know not only who redeemed the coupons, but also
where the coupons were found. This data can help you decide which coupon is best for your
target audience.
Rebates
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid
or contributed.
A rebate is an amount paid, by way of reduction, return, or refund on what has already been paid
or contributed. It one of the sales incentives promotion marketers use to supplement product
sales.
Rebates are offered by either the retailer or the manufacturer of the chosen product. Large stores
often work in conjunction with manufacturers, usually requiring two or even three separate
rebates for each item. Manufacturer rebates are sometimes valid only at a single store. Rebate
forms and special receipts are sometimes printed by the cash register at time of purchase on a
separate receipt, or available online for download.
In some cases, the rebate is available immediately, in which case it is referred to as an instant
rebate. Some rebate programs offer several payout options to consumers, including a paper
check, a prepaid card that can be spent immediately without a trip to the bank or
even PayPal payout.
Rebates are heavily used for advertised sales in retail stores in the United States. In the UK,
rebates are less common, with manufacturers and retailers preferring to give discounts at the
point-of-sale rather than requiring mail-in or coupons. However rebates are sometimes given in
the form of ―cashback offers‖ for mobile phone contracts or other high value retail items sold
alongside a credit agreement.
Rebates are more flexible and can be turned off and on more easily than a sale or instant
discount which tends to lower the perceived value of a promoted product.
The information given in the rebate form, such as name, address, method of payment, can
be used for data mining studies of consumer behavior.
Rebates offer retailers the benefit of giving customers a temporary discount on an item, to
stimulate sales, while allowing it to maintain its current price point.
Rebates allow companies to ―price protect‖ certain product lines by being selective in
which models or brands to be discounted.
During the turnaround time, the company can earn interest on the money.
If the turnaround time crosses into the next fiscal year or quarter, a rebate offer can inflate
sales in the current period, and not have to be accounted for until the next period and then
it could be attributed as a cost reducing sales or expense for the next period.
Not all buyers will meet the criteria to receive the rebate.
Rebates may seem to offer customers lower pricing. Deal hunter sites frequently tout the benefits
of rebates in making technology affordable. According to 2011 research, 47% of consumers
submitted a rebate within the past 12 months; whereas similar research conducted in 2009
showed that only 37% of consumers had submitted a rebate in the preceding year. Still, rebates
take a certain amount of time and effort from the consumer – figuring out the rules, filling out
the forms, preparing and dropping off the mailing, cashing in the check, keeping track of the
paperwork while this is being done. Thus, a rebate can be thought of as being paid to do this
paperwork and provide one‘s personal data to the company. Chances of rebate mailing being lost
or failing some criteria may further reduce the expected return on this effort. Consumers who are
aware of this, and who value their time, effort and opportunity costs above the value of the
rebate, may choose to ignore a non-instant rebate that requires such procedures and assume the
out-the-door price when considering the purchase. On the other hand, if the consumer does not
mind these obstacles and is more concerned with the price than their time for any reason, the
rebate may be seen as a deal.
Premiums
Premiums are prizes, gifts, or other special offers consumer receive when purchasing products.
Another form of consumer sales promotion is the premium. Premiums are prizes, gifts, or other
special offers received when a consumer purchases a product. When a company presents a
premium, the consumer pays full price for the good or service, as opposed to coupons that grant
price reductions or to samples, instead of receiving the actually product.
One of the first loyalty marketing programs ever offered was a premium in which proof of
purchase was redeemed for prizes or gifts. Some marketing experts believe that coupon over-use
damages a brand ‗s image, while premiums can actually enhance it. The key is to match the right
type of premium with the product and a predisposed buyer.
Though not as successful as coupons, premiums can be used to boost sales and remain a valuable
consumer promotional tool. In the United States, each year over $4.5 billion is spent on
premiums.
Type of Premiums
Premiums fall into one of two categories: free premiums which only require the purchase of the
product and self-liquidating premiums which require consumers to pay all, or some, of the price
of the premium.
Free Premiums
Free-in-the-mail premiums are gift that individuals receive for purchasing products.
Free In-The-Mail Premium: Such premiums are gifts individuals receive for buying a product.
Promote multiple brand(s) purchases;
Marketers benefits from store or manufacture premiums as they add value to their brand.
Self liquidating premiums require the consumer to pay an amount of money for a gift or item.
Getting Double: Self-liquidating premiums require consumers to pay an amount of money for a
gift or an item.
The marketing objectives of this type of premium is to attract more customers with low prices.
Integrate the premium with other IMC tools ( especially advertising and POP displays);
and
Loyalty Marketing
Loyalty marketing is an approach whereby a company focuses on growing and retaining existing
customers through incentives and rewards.
Branding, product marketing and loyalty marketing all form part of the customer proposition –
the subjective assessment by the customer of whether to purchase a brand or not, based on the
integrated combination of the value they receive from each of these marketing disciplines.
The discipline of customer loyalty marketing has been around for many years, its value as an
advertising and marketing vehicle have made it omnipresent in consumer marketing
organizations since the mid- to late-1990s.
Some loyalty marketing industry insiders, such as Fred Reichheld, have claimed a strong link
between customer loyalty marketing and customer referral. In recent years, a new marketing
discipline called ―customer advocacy marketing‖ has been combined with, or replaced,
―customer loyalty marketing. ‖ To the general public, many airline miles programs, hotel
frequent guest programs and credit card incentive programs are the most visible customer loyalty
marketing programs.
Frequent Flyers
On May 1, 1981 American Airlines launched the first full-scale loyalty marketing program of the
modern era with the AAdvantage frequent flyer program. This revolutionary program was the
first to reward ―frequent fliers‖ with reward miles that could be accumulated and later redeemed
for free travel. Many airlines and travel providers saw the incredible value in providing
customers with an incentive to use a company exclusively and be rewarded for their loyalty.
Within a few years, dozens of travel industry companies launched similar programs.
The early part of 2010 saw the rise of Card Linked Offers (CLOs) as a new loyalty marketing
technique for brands, retailers and financial institutions, stemming from a rise in popularity of
both mobile payment and coupons. CLOs connect offers or discounts directly to a consumer‘s
credit card or debit card, which can then be redeemed at the point of sale.
To receive and use CLOs, consumers must willingly opt in to a CLO program and provide their
credit/debit card information. When consumers see relevant CLO-enabled advertisements and
product offers while browsing online, using a mobile device, watching TV, reading a newspaper
or magazine or listening to the radio they can click, text or scan a QR code to link the CLO-
enabled ad directly to their credit/debit card. After consumers make a purchase at the designated
retail location, the savings appeared are credited directly to their bank, credit card or PayPal
account. As such, CLOs eliminate point-of-sale integration, mail-in rebates and paper coupons.
Offers are typically based upon consumer preferences and previous purchase history.
Prior to 2010, static CLOs existed for many years in the form of bank-issued loyalty offers, such
as points or savings on travel purchases.
Recently there has been a move away from proprietary loyalty schemes to a more consolidated
approach, where a single registered account can link a consumer to any number of participating
merchants. The principal advantage of this approach is that it minimizes the number of discrete
relationships between consumers and merchants and only requires a one-off registration.
One prominent example is the US-based Punchd, which became part of Google in 2011. Others,
like MazeCard, have offered consolidated loyalty marketing schemes in other continents.
Many loyalty programs have changed the way in which consumers interact with the companies
that they purchase products or services from and how much the consumers spend. Many
consumers in the US and Europe have become quite accustomed to the rewards and incentives
they receive by being a ―card carrying‖ member of an airline, hotel or car rental program. In
addition, research from Chris X. Moloney shows that nearly half of all credit card users in the
US utilize a points-based rewards program.
In recent years, the competition for high income customers has led many of these loyalty
marketing program providers to provide significant perks that deliver value well beyond reward
points or miles. Both American‘s AAdvantage program and Starwood Hotels‘ Preferred
Guest program have received industry awards, called “Freddie Awards‖ by Inside Flyer
Magazine and its publisher Randy Petersen for providing perks that customers value highly.
These perks have become as important to many travelers as their reward miles, according to
research.
In his book, Loyalty Rules!, Fred Reichheld details the value of customer referral on the growth
and financial performance of dozens of leading US firms. Reichheld purports that the
measurement of company advocates, or promoters, is the strongest single measurable correlation
between customers and corporate performance.
Similarly, Chris X. Moloney has presented new findings (Loyalty World London 2006) that
showed a magnetic value to a company to promote and measure customer referrals and advocacy
via research and marketing.
Contests and sweepstakes are two forms of sales promotions which attract consumers by offering
them the chance to win a valuable prize.
Q1. Compare and contrast the various types of advertisements types and their mertits and
demirts in various situations.
Unit No: 5 Public relations (PR)
Types of PR- Publicity -Corporate Reputation, image building, crisis management, Event
Sponsorship, word of mouth (WOM) Marketing, Direct Marketing 07
PR—In contrast, public relations techniques target media professionals like editors, journalists,
and radio/TV/podcast hosts, to garner earned.
Public relations
People who work in PR are responsible for building good relationships between their clients,
their clients' audience and the wider public. You'll often see PR agencies used to build, maintain
and repair reputations or the image of a brand.
Media relations is all about dealing with the media – writing press releases, scheduling
interviews and giving press conferences. The goal is to generate positive coverage of your
company or your product. Basically, you want the media to do your advertising for free.
The key to media relations is generating a ‗hook‘ to draw in audiences. You need to have an eye
for a compelling story that the media will want to cover. You also need to have the skills to get
the story out there, which can vary depending on the role. Copywriters produce snappy, well-
written press releases, while company spokespeople stand up and give speeches to the press. In
smaller organisations, one person is responsible for everything.
Community relations
Community engagement officers work to develop a company‘s relationship with the local (and
not-so-local) community.
getting local support for a project, such a building a new manufacturing plant
‗giving something back‘, which improves the company‘s ethical reputation
getting people interested in your products or services
To be a community engagement officer you need to understand how people in the community
think and act, and how best to engage with them – whether by running events, visiting schools or
writing newsletters. You need to be organised, intuitive, enthusiastic and strategic.
Related to community engagement, there is PR that improves the company‘s reputation for
ethics, environmental responsibility, and community and charity works. This area of PR can
hugely affect an organisation‘s business practices. A CSR PR officer might recommend the
company to change its entire recycling policy or even its business direction.
To be a good CSR officer you need the ear of the company leaders – which takes networking
skills, people skills, persuasion and the ability to endear yourself to your colleagues.
Public affairs
Public affairs, also known as lobbying, is all about getting the government on your side. Say you
wanted a change in farming legislation so you could sell your product for more money. You‘d
need to make contact with a minister, convince them of your case, and provide them with
information so they can talk confidently about your issue and fight your corner.
Public affairs professionals work to make contacts within government and other organisations.
They‘re personable, tenacious, and occasionally sneaky. Learn more about a career in Public
Affairs.
Crisis management
Crisis management is the PR you need when disaster strikes: a faulty product has to be recalled,
an oil tanker spills, an employee accuses the company of wrongdoing, or the CEO is arrested for
public indecency. These things could ruin the company‘s reputation and need to be dealt with
quickly.
Crisis managers are quick thinkers who know how to spin an issue. They can manage teams and
delegate tasks. They understand every media channel so they can tell which problems need a
press conference and which can be solved with a single tweet.
Employee relations
Also known as internal PR, employee relations is the business of giving employees a positive
view of the company they work for. The goal is to keep them satisfied, motivated and loyal.
This is perhaps the most sensitive form of PR, as it‘s based less on image and more on action.
For example, in resolving disputes you can only offer as much as the higher-ups in the company
will let you – and it‘s very difficult to put a positive spin on the word ‗no‘. Find out how you can
make it into PR.
Image building
The exercise of image building starts with evaluating the status, understanding the current
perception for the brand in general and publics specific. It's followed by deciding the image to be
build or need of alteration and activities involved to do so.
Crisis management
Crisis management is the process by which an organization deals with a major unpredictable
event that threatens to harm the organization, its stakeholders.
Crisis management public relations can make or break your company during a crisis event.
Whether you know it or not, your business is vulnerable to a diverse range of unexpected threats,
any one of which can severely damage your reputation and have a potentially devastating effect
on revenue, customer acquisition, loyalty, and other important business outcomes.
The key to successfully navigating a crisis is preparation—and that‘s where crisis management
public relations enters the picture. By working with an experienced PR firm before an event
occurs, you can substantially improve your ability to minimize the impact of negative publicity
on your business.
Although PR crises aren‘t inevitable, they can be unavoidable. Through no fault of your own, it‘s
possible that your business will suddenly experience an event that generates negative press,
publicity and social media mentions.
At Walker Sands, we specialize in providing crisis management public relations for leading B2B
technology firms as well as startups. Some of the types of events that can catalyze a need for
crisis management public relations include:
Product Flaws
Business Acquisitions
Savvy PR professionals understand that there is no magic bullet in successful crisis management
public relations. Instead, the best public relations strategies leverage a multi-pronged approach
that addresses several essential components of effective crisis management public relations.
Planning. Strong planning is the foundation of good crisis management public relations. By
forecasting possible crisis scenarios and proactively designing response plans ahead of time,
Walker Sands can equip your company with sophisticated and nuanced responses to a range
of crises.
Training. In a crisis, both internal and external audiences will look to your company‘s
management team for answers. Crisis management public relations training provides your
management team a foundation in crisis management techniques and equips them to
intelligently respond in a manner that mitigates damage to your company.
Execution Assistance. In the event of an actual PR crisis, you need strategic advice and
counsel from experienced PR professionals. The best crisis management public relations
firms offer hands-on assistance to guide your business through the event and post-event
recovery.
Event Sponsorship
In all its forms, sponsorships allow you to reach targeted niche markets without the expense and
uncertainty associated with traditional advertising. Strategic sponsorships can help your business
meet multiple marketing goals at once.
1. Shape consumer attitudes. Sponsoring events that your customers care about creates
positive feelings about your brand. If customers feel you care about the same things they
do, they are more likely to have a positive attitude toward your company.
2. Build brand awareness. Sponsorships with in-kind products are often cheaper than
traditional advertising. If you choose your events carefully, it guarantees you an audience
that needs your products, unlike traditional media ads, which can be seen by anyone. For
example, a pet store owner who provides branded leashes for a local kennel club's annual
dog show knows their brand's name will be seen in action repeatedly by their target
customers.
3. Drive sales. Driving sales goes hand-in-hand with brand awareness, and many
sponsorship opportunities allow you to introduce consumers to your product in a way that
encourages them to make a purchase. Food or cosmetic companies at a trade show, for
example, may have samples for a customer to try at the same location where they can
purchase full-size products. You may choose to link purchases to a specific event, as
American Express did by making a donation every time customers used their AmEx
cards during its "Charge Against Hunger" campaign.
4. Increase reach. Strategic sponsorship encourages word-of-mouth marketing. Ideally,
people who attend an event that you sponsor will have a positive interaction with your
brand and continue to talk about your service or product. If your company's name is on
the event's promotional materials, including emails and advertisements, you have an
additional opportunity to reach more customers.
5. Generate media exposure. For many small companies, media coverage is expensive and
out of financial reach. If, however, you can sponsor a local occasion or industry trade
show, you can capitalize on the media presence of that event. Media coverage often
includes the names of sponsors, especially if your logo is tied to the name or branding of
the event. This positive publicity increases the visibility of your products and services,
especially if you have a media plan in place to capitalize on the exposure.
6. Differentiate yourself from competitors. Sponsoring an event, especially an exclusive
sponsorship, sets you apart from your competitors by tying you to something positive in
consumers' minds. This tactic is particularly helpful if your competitor has a larger ad
budget than your company.
7. Take on a "corporate citizen" role. Not all sponsorships have to center around industry
events. Sponsoring local sports teams, charity campaigns, or public organizations like
museums puts you in the role of a good neighbor or a corporation with a conscience.
Customers are more likely to perceive you as contributing to their community, which
creates goodwill and positive associations with your brand.
8. Generate new leads. If you're sponsoring an industry event, you have the opportunity to
connect with consumers who are actively in need of your services. Capitalize on the
position and respect associated with sponsorship to showcase yourself or your product.
Don't focus on sales. Be knowledgeable and helpful while providing a way for interested
customers to sign up to learn more about your business. If you can, offer something for
free in exchange for their contact information.
9. Enhance business, consumer, and VIP relationships. Many events will offer special
opportunities to sponsors, such as exclusive networking settings, VIP receptions, or
outings with high-profile people in the industry. You can take advantage of these events
to meet key customers and solidify business relationships, especially if you have a plan
for following up once the event is done.
Sponsorships help your business increase its credibility, improve its public image, and build
prestige. Like any form of marketing, it should be used strategically as a way to reach your target
customers.
As you build your marketing plan, research the events and causes that your ideal customers care
about.
Depending on the cost and reach of different sponsorship opportunities, you may find that they
are a better use of your marketing budget than many forms of traditional advertising.
Word of mouth (WOM) Marketing
What exactly is direct marketing, and how can you create this type of strategy? For starters, it
is one of the most effective marketing methods and it has many benefits, like clearly
measurable results.
In this article, we'll explain the benefits of direct marketing, show a few examples, and walk
through the steps for implementing a successful campaign.
Direct Marketing
Direct marketing is a type of advertising that seeks to achieve a specific action among a
selected group of consumers (such as placing an order, visiting a website, or requesting
information). The method of communication by the advertiser or marketer can take many
different formats, like direct mail, telemarketing, or through social ads. One of the most
interesting methods is direct email marketing.
An essential aspect of direct marketing is that the consumer response is measurable. For
example, if you offer a discount for an online store, you should include some kind of cookie
or pixel to let you know if the user has used the code.
Direct marketing allows you to promote your product or service directly to your
target audience and measure the results quickly, but the benefits go far beyond the 6 outlined
below.
1. High segmentation and targeting: You can reach your specific audience segments with
personalized messages. To be successful, you should invest time in researching and
identifying the consumers who are most likely to convert.
3. Increase your sales with current and former clients: Direct marketing lets you
communicate with your current customers to keep the relationship alive while
continuing to bring value. It also allows you to get back in touch with old customers
and generate new sales opportunities.
4. Upgrade your loyalty strategies: Direct contact with your customers allows you to
customize your promotions and email content to their needs. To maximize results, you
can combine your direct marketing methods with your loyalty program.
5. Create new business opportunities: Direct marketing allows you to adapt to market
demands at all times and respond more effectively.
6. Tests and analyzes the results. Direct marketing campaigns give you the opportunity
to measure your results and make decisions in real-time.
3 Examples of Direct Marketing
The most powerful and innovative direct marketing strategies want to elicit a reaction in the
target audience using content delivered directly to the consumer, both physically and through
email marketing. A very striking graphic design, a surprising product, or a video that touches
the heartstrings of the listener, can elicit a direct response from the consumer. Below we'll
review three great examples of direct marketing.
1. Toyota Corolla
Direct marketing is a great opportunity for businesses if used in the right way, but it is also a
good way for agencies to flex their muscles. If they put all their creativity into the strategy
and use really shocking advertising techniques, the campaign will be long remembered by the
public and attract potential customers. A great example of this is Toyota.
2. Touch Branding
This is a branding agency based in Prague with over 15 years of experience in global
campaigns. They created a direct marketing campaign with the tagline: "We'll give our blood
for good branding" and created a graphic that supported the message. This really is one of the
greatest examples of direct marketing that we've ever seen!
For direct mail, they attached a "blood bag" (don't worry - it was fake) with
letters. They supported the direct mail campaign with matching email campaigns and
banners on their website. What a way to "hook" potential companies to be customers! .
Canva
The beauty of Canva's emails is the somplicity. When they create a new design concept, they
advertise it to all of their subscribers and send them an email so that they know and can start
using it in their presentations and infographics. At Cyberclick, we love this online marketing
tool and believe that their emails are great examples of effective direct marketing.
Product placement and Branding in films
Product placement, also known as embedded marketing, is a marketing technique where
references to specific brands or products are incorporated into another work, such as a film
or television program, with specific promotional intent.
Q1. What are the various WOM methods and techniques used by the marketers? Explain with
examples.
Q2. What are the various kinds of PR relations? Explain with the examples and case study.
Promotional Tools: Product placement and Branding in films, Product placement on television,
Film Based Merchandising, Sponsorships for Reality Shows & TV serials, Ambush marketing 07
The 4 Ps of marketing are product, price, place and promotion. All four of these elements
combine to make a successful marketing strategy. Promotion looks to communicate the
company‘s message across to the consumer. The four main tools of promotion are advertising,
sales promotion, public relation and direct marketing.
Advertising
Advertising is defined as any form of paid communication or promotion for product, service and
idea. Advertisement is not only used by companies but in many cases by museum, government
and charitable organizations. However, the treatment meted out to advertisement defers from an
organization to an organization.
Advertising development involves a decision across five Ms Mission, Money, Message, Media
and Measurement.
Mission looks at setting objectives for advertising. The objectives could be to inform, persuade,
remind or reinforce. Objective has to follow the marketing strategy set by the company.
Money or budget decision for advertising should look at stage of product life cycle, market share
and consumer base, competition, advertising frequency and product substitutability.
Message‘s development further is divided into four steps, message generation, message
evaluation and selection, message execution, and social responsibility review.
Once the message is decided the next step is finalizing the media for delivering the message. The
choice of depends on reach of media, frequency of transmission and potential impact on
customer. Based on this choice of media types are made from newspaper, television, direct mail,
radio, magazine and the internet. After which timing of broadcast of the message is essential as
to grab attention of the target audience.
Checking on the effectiveness of communication is essential to company‘s strategy. There are
two types of research communication effect research and sales effect research.
Sales Promotion
Promotion is an incentive tool used to drive up short term sales. Promotion can be launched
directed at consumer or trade. The focus of advertising to create reason for purchase the focus of
promotion is to create an incentive to buy. Consumer incentives could be samples, coupons, free
trial and demonstration. Trade incentive could be price off, free goods and allowances. Sales
force incentive could be convention, trade shows, competition among sales people.
Sales promotion activity can have many objectives, for example, to grab attention of new
customer, reward the existing customer, increase consumption of occasional users. Sales
promotion is usually targeted at the fence sitters and brand switchers.
Sales promotional activity for the product is selected looking at the overall marketing objective
of the company. The final selection of the consumer promotional tools needs to consider target
audience, budget, competitive response and each tool‘s purpose.
Sales promotion activity should under-go pretest before implementation. Once the activity is
launched it should be controlled as to remain within the budget. Evaluation program is a must
after implementation of the promotional scheme.
Public Relations
Companies cannot survive in isolation they need to have a constant interaction with customers,
employees and different stakeholders. This servicing of relation is done by the public relation
office. The major function of the public relation office is to handle press releases, support
product publicity, create and maintain the corporate image, handle matters with lawmakers,
guide management with respect to public issues.
Companies are looking at ways to converge with functions of marketing and public relation in
marketing public relation. The direct responsibility of marketing public relation (MPR) is to
support corporate and product branding activities.
MPR is an efficient tool in building awareness by generating stories in media. Once the story is
in circulation MPR can establish credibility and create a sense of enigma among sales people as
well as dealers to boost enthusiasm. MPR is much more cost effective tool than other
promotional activities.
Direct Marketing
The communication establishes through a direct channel without using any intermediaries is
referred to as direct marketing. Direct marketing can be used to deliver message or service.
Direct marketing has shown tremendous growth in recent years. The internet has played major
part in this growth story. Direct marketing saves time, makes an experience personal and
pleasant. Direct marketing reduces cost for companies. Face to face selling, direct mail, catalog
marketing, telemarketing, TV and kiosks are media for direct marketing.
Advertisement, Promotional activity, Public relation and direct marketing play an essential role
in helping companies reaches their marketing goals.
Sponsorship
―Advertisers are demanding more value for their investment in reality shows; merely placing a
product in the backdrop does not do enough justice to the kind of money going in (to these
shows)," said Kevin Vaz, executive vice-president, advertising sales, Star India.
Ambush marketing
Q3. The celebrities use PR tools very effectively. Demonstrate how some of the celebrities have
done so and what tools have they used to upgrade their personal branding?
Q4. What are the contemporary tools of IMC? Explain their applications by taking a case study
of your choice.
Q5. Design a campaign for CSR department of any company of your choice using all the IMC
tools and its applications.
Q6. What is the significance of IMC evaluation and control> How budget influence the adoption
of various media selection process and choice?
The integrated components used by Coca Cola employed a mass media methodology which
included television advertising, print media and banner ads. The approach utilized a marketing
mix of advertising, direct marketing, as well as Web based interactive and social media
marketing and sales promotion.
Coca Cola advertising has historically been among the most prolific in marketing history. The
various ad campaigns throughout the company‘s one hundred twenty nine year history have
often had a major impact on culture and society, including a hit song which received airplay on
popular radio stations in 1971. The logo and bottle designs are immediately recognizable
throughout the world, and are integral to the brand‘s image and recognition in the marketplace
(Wikipedia, 2015). In the southern U.S. the beverage is so pervasive that all soft drinks, typically
referred to variously as soda, pop, or soda pop, are called Coke (McConchie, 2015). Coca Cola
has repeatedly been ranked as the number one soft drink in the world as a direct result of their
aggressive advertising campaigns, and was even the first soft drink consumed by astronauts in
space (Hartlaub, 2015).
Direct marketing efforts by Coca Cola are myriad. The devices operated incorporate vendor
company partnerships designed for exclusivity, i.e. restaurants and movie theatres only offering
Coke products, eliminating any direct competition. They sponsor sporting events via use of the
company, e.g. baseball fields, again offering attendant consumers the brand‘s products solely.
This allows for one-to-one sales to important clients in especially reserved seating areas. Mobile
marketing endeavors send out text messages in an attempt to personalize promotions, and viral
marketing exertions rely heavily on word-of-mouth communication from brand loyalists (Wilkin,
2009). Web based and social media marketing campaigns constitute industry benchmarks.
Because the brand is so universally recognized throughout the world, little if any audience
building is necessary. Fans number over eighty six million across social media channels engaged
by the brand. Differing tactics are provided on individual social networking sites, yet a
consistently unified message is upheld. Crowd-sourced content as well as direct engagement are
hallmarks of Coca Cola‘s social media marketing (Shively, 2014). Web based interactive
marketing is focused on design and functionality, relying on banners, video and public relations.
New products, online games, and social, cultural and sporting events are the focus of the Coca
Cola Website content (Darakeva, 2013). Coca Cola‘s commitment to a campaign of audience
engagement throughout their online marketing crusades is well recognized. Sales promotion for
Coca Cola is aimed at two strategies, retail and food service. Retail efforts are directed toward
company partnerships, direct store delivery and point-of-sale (POS) techniques. Reliance on
exclusive company partnerships wherein restaurants only offer Coke products eliminates
competition. Direct store delivery is a crucial link in the value chain, and offers mobile
advertising with bright red delivery trucks emblazoned with the brand logo. POS displays
include brand specific coolers for in-store sales along with vending machines which carry Coke
products. Food service activities emphasize Coke products in food pairings, menu optimization,
and specialty beverages. Meals comprised of convenience foods such as hamburgers, hot dogs,
French fries, etc., are often supplemented by the suggestion of Coke products for
accompaniment. Such foods may be combined with Coca Cola brand drinks for menu
optimization, which may include specialty beverages such as Diet Coke, Cherry Coke, and others
(CokeSolutions, 2014).
A comparison of the relative importance of the Coca Cola IMC components reveals a marketing
communications mix which is iconic. So much of the brand image is immediately recognizable,
right down to the bright red and white lettering of the names Coke and Coca Cola. This imagery
is carried out globally, and is so established and acclaimed world-wide that even in languages
that may not be familiar in local markets are readily known by consumers (Wikipedia, 2015).
Multi-lingual ad use was in fact the case during the recent airing of the NFL Super Bowl
Championship, in which the use of English, Spanish, Tagalog, Hebrew, Hindi, Keres, and
Senegalese-French languages were incorporated along with the song America the Beautiful
(Indian Country Today Media Network, 2015).
The Coca Cola IMC messaging has established a longing for the product that supersedes the
desire for that typically associated with a drink to quench one‘s thirst (Dudovskiy, 2015). The
rank and positioning of the elements used as part of the integrated marketing approach cannot
therefore be overstated. The resultant international presence of Coca Cola is a direct outgrowth
of the marriage of the advertising, direct marketing, as well as Web based interactive and social
media marketing and sales promotion efforts that have been included over the years in their IMC
endeavors. Coca Cola has established itself as a player on the large-scale stage as a direct
outcome secondary to the comparative importance of the components of the integrated marketing
communications mix.
Component Efficiency
The efficiency of the combined IMC elements has proven to be quite lucrative. Revenue has
recently been listed at forty six billion USD, with a profit margin of 15.43% and a book value per
share of six dollars and ninety five cents USD (Yahoo! Finance, 2015). Annual sales in excess of
forty six billion USD and a ranking of #4 of the World‘s Most Valuable Brands place Coca Cola
squarely on the global market. The company, which was incorporated on September 5, 1919,
now carries over five hundred different beverages which are marketed on six continents (Forbes,
2014). The competence of the combined components used in the Coca Cola integrated marketing
communications exemplifies the excellence that can be achieved by a single brand. The
achievement can further be evaluated by examination of media metrics such as advertising
equivalency, the sum total audience which has been attained through particular media outlets,
statistical figures of journalists hosted, number of articles published etc. In terms of market share
benchmarks, Coca Cola is promoting and selling its products in over two hundred countries, and
employs almost one hundred forty thousand associates, lending credence to the consideration of
the company as a market leader in the majority of these marketplaces. Assessment of unique
Website visitors, length of visit, search engine results (both free and paid) numbering in the
billions on both Google and Bing as well as others offer insight to the combined component
efficacy (Dudovskiy, 2015).
Instructions:
Section 1
Section 2
Q6. Discuss Methods for Measurement of Advertising effectiveness with a case study of your
choice.
Q7. Explain Ethical IMC Practices? Explain with case study of your choice.
Q8. Analyze the various steps of Design of Advertisement (Print Media) with examples.
Instructions:- Answer in details the case study given: 10 marks. (No two persons sitting next
to each other should be giving the same company name nor attempt the same question). You can
refer to news paper to paste the relevant content to make it creative and innovative.
Q. 1 You are working as an Ad traffic manager for your dream company. Design the
Institutions of Advertising Management of the product/service of your choice in the company.
Also design the Services offered by Agency, Criteria for Selection and Agency of Record. How
would you manage Client Agency Relationship and conflict?
Q2. You are consulting for an advertising company which has launched new product or services.
Design the Media Mix, Media Vehicle, Ad copy and Appeals in advertising for such product and
services in the market. Pls refer to newspaper content to draw your inspiration wrt to context of
the study.