LSCM 3rd Sem Module 1
LSCM 3rd Sem Module 1
LSCM 3rd Sem Module 1
22MBAMM404
Module - 1
Integrated Marketing Communications
Integrated Marketing Communication: Role of IMC in marketing process, IMC planning
model, Marketing and promotion Process model.
Communication Process, steps involved in developing IMC programme, Effectiveness of
marketing communications
Advertising: Purpose, Role, Functions, Types, Advertising Vs Marketing mix, Advertising
appeal in various stages of PLC Relevant Case Study
INTRODUCTION:
Integrated marketing communications (IMC) is a process for managing customer relationship
that drive brand value primarily through communication efforts. Such efforts often include cross-
functional processes that create and nourish profitable relationships with customers and other
stakeholders by strategically controlling or influencing all messages sent to these groups and
encouraging data-driven, purposeful dialog with them. IMC includes the coordination and
integration of all marketing communication tools, avenues, and sources within a company into a
seamless program in order to maximize the impact on end users at a minimal cost. This
integration affects all firms' business-to-business, marketing channel, customer-focused and
internally directed communications. Integrated Marketing Communications is a simple concept.
It ensures that all forms of communications and messages are carefully linked together. At its
most basic level, Integrated Marketing Communications or IMC, as we'll call it, means
integrating all the promotional tools, so that they work together in harmony. Promotion is one of
the Ps in the marketing mix.
All of these communications tools work better if they work together in harmony rather than in
isolation. Their sum is greater than their parts - providing they speak consistently with one voice
all the time, every time. This is enhanced when integration goes beyond just the basic
communications tools. There are other levels of integration such as Horizontal, Vertical, Internal,
External and Data integration. Here is how they help to strengthen Integrated Communications.
Integrated marketing communication refers to integrating all the members of brand promotion to
promote a particular product or service among target customers. In integrated marketing
communication, all aspects of marketing communication work together doe increased sales and
maximum cost effectiveness.
Integrated Marketing Communications requires a lot of effort it delivers many benefits. It can
create competitive advantage, boost sales and profits, while saving money, time and stress.
IMC wraps communications around customers and helps them move through the various stages
of the buying process. The organization simultaneously consolidates its image, develops a
dialogue and nurtures its relationship with customers.
Relationship Marketing cements a bond of loyalty with customers which can protect them from
the inevitable onslaught of competition. The ability to keep a customer for life is a powerful
competitive advantage.
IMC increases profits through increased effectiveness. At its most basic level, a unified message
has more impact than a disjointed myriad of messages. In a busy world, a consistent,
consolidated and crystal-clear message has a better chance of cutting through the 'noise' of over
five hundred commercial messages which bombard customers each and every day.
INC can boost sales by stretching messages across several communications tools to create more
avenues for customers to become aware, aroused, and ultimately, to make a purchase
Carefully linked messages also help buyers by giving timely reminders, updated information and
special offers which, when presented in a planned sequence, help them move comfortably
through the stages of their buying process and this reduces their 'misery of choice' in a complex
and busy world.
IMC makes messages more consistent and therefore more credible. This reduces risk in the mind
of the buyer which, in turn, shortens the search process and helps to dictate the outcome of
brand comparisons.
Un-integrated communications send disjointed messages which dilute the impact of the message.
This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated
communications present a reassuring sense of order.
Consistent images and relevant, useful, messages help nurture long term relationships with
customers. Here, customer databases can identify precisely which customers need what
information when and throughout their whole buying life.
IMC saves money as it eliminates duplication in areas such as graphics and photography since
they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are
reduced by using a single agency for all communications and even if there are several agencies,
time is saved when meetings bring all the agencies together - for briefings, creative sessions,
tactical or strategic planning. This reduces workload and subsequent stress levels - one of the
many benefits of IMC.
5.Increasing global marketing: There was a rapid influx in advertising competition from
foreign countries. Companies quickly realized that even if they did not conduct business outside
their own country, they were now competing in global marketing.
6.Increasing media and audience fragmentation: With the exception of the decline of
newspapers, media outlets, such as magazines and television stations, increased from 1980 to
1990. Additionally, companies could use new technologies and computers to target specialized
audiences based on factors such as ethnic background or place of residence.
7.Increasing number of overall products: Manufacturers flooded retailers with a plethora of
new products, many of which were identical to products that already existed. Therefore, a unique
marketing and branding approach was crucial to attract customer attention and increase sales.
A marketing Communicator must start with a clear target audience in mind. The audience may
be potential buyers of the company's products, current users, deciders or influence. The audience
may be individuals, groups, particular publics or the general public. The target audience will
critically influence the communicators decision on what is to be said. The communicators should
research the audience's needs, attitudes, preference and other characteristics as a prelude to
setting communication objectives. One of the most important things to establish is the audience's
current image of the object.
Step-2: Image Analysis
A major part of audience is to assess the audience's current image of the company, its product,
and its competitors. People's attitudes and actions towards an object are highly conditioned by
their beliefs about the object. Image is the set of beliefs, ideas and impressions that a person
holds of an object.
The most popular tools for this are the semantic differential. It involves the following steps:
i) Developing a set of relevant dimensions
ii) Reducing the set of relevant dimensions
iii) Administering the instrument to a sample of respondents
iv) Averaging the results
v) Checking on the image variance
The marketers should now develop a picture of the desired image in contrast to the current
image. An organization seeking to change its image must have great patience. Images persistence
is explained by the fact that once people have a certain image of an object; they tend to be
selective perceivers of further data.
Step-3: Determining the communication Objectives
Once the target audience and its characteristics are identified, the marketing communication
must determine what response is sought. The ultimate response of course, is purchase. But
behavior is the end result of a long process of consumer decision making. The marketing
communicator needs to know how to move the target audience from where it now stands to a
higher state of readiness to buy. We will work with the "hierarchy of effects "models and
described the six buyer readiness states Awareness, Knowledge, liking, Preference, Conviction,
and Possible, depending upon the degree of consumer involvement and the degree of - brand
differences.
Step-4: Designing the Message
Designing the Message is having defined the desired audience response, the communicator's
moves to developing an effective message. Ideally the message should get attention, hold
interest, arouse desire and obtain action. In practice, few messages take the consumer all the way
from awareness through purchase, but the frame work suggests the desirable qualities.
Step-5: Managing and Co-ordinating the Marketing Communication Process
The wide range of communication tools and messages available for reaching the target audience
makes it imperative that they be coordinated. Otherwise, the messages might be ill timed in
terms of the availability of goods: they may lack consistency: or they might not be cost effective.
Left alone, each manager of a communication resource will fight for more budgets irrespective
of the relative merits of each tool.
right time. Be careful about the content of the advertisement, after all you are paying for every
second.
Advertising is always present, though people may not be aware of it. In today's world,
advertising uses every possible media to get its message through. It does this via television, print
(newspapers, magazines, journals etc.), radio, press, internet, direct selling, hoardings, mailers,
contests, sponsorships, posters, clothes, events, colors, sounds, visuals and even people
(endorsements).
The advertising industry is made of companies that advertise agencies that create the
advertisements, media that carries the ads, and a host of people like copy editors, visualizers,
brand managers, researchers, creative heads and designers who take it the last mile to the
customer or receiver. A company that needs to advertise itself and/or its products hires an
advertising agency. The company briefs the agency on the brand, its imagery, the ideals and
values behind it, the target segments and so on. The agencies convert the ideas and concepts to
create the visuals, text, layouts and themes to communicate with the user. After approval from
the client, the ads go on air, as per the bookings done by the agency's media buying unit.
OBJECTIVES OF ADVERTISING
1. To Inform Buyers
This objective includes informing customers regarding product's availability, price, features,
qualities, services, and performance. Besides, it also includes informing them about changes
made in the existing product and introduction of new products. Company also highlights its
location, achievements, policies, and performance through advertising.
2. To Persuade or Convince Buyers
Company uses advertisement to persuade or convince the buyers about superior advantages
offered by its product. Company communicates competitive advantages the product offers to
induce customers buy it. Comparative advertising is used to prove the additional benefits of
product at a given price.
3. To Remind Buyers
Marketer uses advertising to remind the buyers regarding existence of company, products,
maintenance of quality, superior services, and chasing customer-orientation. Mostly, the existing
firms aim their advertising for this objective.
Here, the purpose is to inform that the company is still in existence and serving customers in a
better way. Due to huge information bombarded by a number of companies, customers are more
likely to forget name of company and/or products and services it offers.
4. To Face Competition
Advertising is treated as the most powerful weapon to fight with competitors effectively.
Advertising enables the firm to respond the competitors strongly. It helps the firm to distinguish
its total offerings from competitors.
In brief, the firm can face competition, can prevent the entry of competitors, or can remove
competitors away from the market. In competitive marketing environment, the firm cannot
survive without an effective advertisement.
5. To Achieve Sales Targets
Increase sales volume is one of the major advertising objectives. A company can advertise is
products in various media to attract customers situated in different parts of the world. National
and international marketing is the result of advertising. Even, non-users can be converted into
user and usage rate can be increased. Thus, company can achieve its sales objectives by
advertisement.
6. To Build and Improve Brand Image
Advertising is used for brand recognition and acceptance. A company can distinguish it brand by
magnifying major benefits the product offers. Advertisement attracts customers toward the
brand; they try it and accept it over time. In the same way, bad image related to brand can be
changed by systematic presentation of facts and scientific evidences, and removing
misunderstanding.
7. To Help or Educate People
Advertising is not always used only for company's benefits. It is meant for helping customers to
make the right choice of product. It educates people about availability of new products, its
features and qualities, price, services, and other related aspects. Such information is instrumental
for purchasing suitable products. Thus, it guides customers to choose the most appropriate
product.
in the market. Many companies advertise its policies, activities, and achievements to make a
permanent place in the mind of people.
9. To Assist Sales Force and Middlemen
Advertising is an aid to middlemen and salesmen. Advertising also popularizes the name of
dealers. Likewise, advertising provides necessary information to the buyers. Middlemen and
salesmen are not required to do the same. It eases the task of sellers. In the same way, advertising
encourages sales force.
CHARACTERISTICS OF ADVERTISING
Characteristics of Advertising can be summarized as follows:
1. Tool for Market Promotion
There are various tools used for market communication, such as advertising, sales promotion,
personal selling, and publicity. Advertising is a powerful, expensive, and popular element of
promotion mix.
2. Non-personal
Advertising is a type of non-personal or mass communication with the target audience. A large
number of people are addressed at time. It is called as non-personal salesmanship.
3. Paid Form
Advertising is not free of costs. Advertiser, called as sponsor, has to spend money for preparing
message, buying media, and monitoring advertising efforts. It is the costliest option of market
promotion. Company has to prepare its advertising budget to appropriate advertising costs.
4. Wide Applicability
Advertising is a popular and widely used means for communicating with the target market. It is
not used only for business and profession, but is widely used by museums, charitable trusts,
government agencies, educational institutions, and others to inform and attract various target
publics.
5. Varied Objectives
Advertising is aimed at achieving various objectives. It is targeted to increase sales, create and
improve brand image, face competition, build relations with publics, or to educate people.
6. Forms of Advertising
Advertising message can be expressed in written, oral, audible, or visual forms. Mostly, message
is expressed in a joint form, such as oral-visual, audio-visual, etc.
7. Use of Media
Advertiser can use any of the several advertising media to convey the message. Widely used
media are print media (newspapers, magazines, pamphlets, booklets, letters, etc.), outdoor media
(hoardings, sign boards, wall-printing, vehicle, banners, etc.), audio-visual media (radio,
television, film, Internet, etc.), or any other to address the target audience.
8. Advertising as an Art
Today's advertising task is much complicated. Message creation and presentation require a good
deal of knowledge, creativity, skills, and experience. So, advertising can be said as an art. I is an
artful activity.
9. Element of Truth
It is difficult to say that advertising message always reveals the truth. In many cases, exaggerated
facts are advertised. However, due to certain legal provisions, the element of truth can be fairly
assured. But there is no guarantee that the claim made in advertisement is completely true. Most
advertisements are erotic, materialistic, misleading, and producer-centered.
10. One-way Communication
Advertising involves the one-way communication. Message moves from company to customers,
from sponsor to audience. Message from consumers to marketer is not possible. Marketer cannot
know how far the advertisement has influenced the audience.
SALES PROMOTION
Sales promotion is a set of marketing technologies aimed to stimulate the demand in particular
products and increase brand awareness. Limited in time, it creates a feeling of time-sensitiveness,
generates new leads, and keeps existing customers engaged.
Sales promotion is one of the core elements of the promotion mix. To build long-lasting
relationships with users, you need to find out the types of sales that work with your target
audience. At the same time, you should provide customers with value that's relative to your field
of expertise.
Brands (Products and services) can be promoted through discount coupons, loyalty clubs,
membership coupons, incentives, lucrative schemes, and attractive packages for loyal customers,
specially designed deals and so on. Brands can also be promoted effectively through newspaper
inserts, danglers, banners at the right place, glorifiers, wobblers etc.
Sales promotion includes all forms of sponsored communication apart from activities associated
with personal selling. It, thus includes trade shows and exhibits, combining, sampling, premiums,
trade, allowances, sales and dealer incentives, set of packs, consumer education and
demonstration activities, rebates, bonus, packs, point of purchase material and direct mail.
The wholesalers and retailers who have a variety of goods in their shops can sell more easily to
customers. Therefore, sales promotion activities are undertaken by the manufacturers to
encourage dealers to have more stocks of their goods.
7. To increase loyalty
Loyalty to a product or service is much more subjective and personal in nature than repeat
purchase. Loyalty keeps the product moving even when the company is facing problems in terms
of price, distribution etc.
8. To widen usage
Very often it would be seen that one product is widely used in one sector and not so in other
sectors. The trend could be changed by educating consumers about the other uses of products. A
detailed list of objectives is given for the benefit of the students.
Promotional activities are used to create interest in the new product and to persuade people to
buy the same. This helps in launching the new product.
(iv) Product Differentiation
Promotion helps in differentiating a particular product of the firm from the competing products
of other firms. A firm can also use data revealing how its product compares with the other
products.
v) Synergy in Promotional Activities
Sales promotion activities supplement personal selling and advertising efforts of the firm. They
add to the overall effectiveness of the firm's promotional activities.
increase in sales is gained at the cost of a loss in the profit. It attracts non users and
act as an effective tool to counter competition.
ii. Coupons: It is a method of offering a discount offering. Coupons are the most widely
used customer sales promotion technique. A coupon is a certificate that offers a price
reduction for some specified items to the holder. Coupons are distributed with
purchase of a product, magazines, newspapers, etc. A few examples of coupon
distribution can be coupon pasted on a package, or placed inside a package to
encourage repeat purchase. Coupon books are sent out in newspapers, or offered with
the purchase of an item in a given time frame.
iv. Free Samples: Offering free gifts or samples is the most expensive form of sales
promotion. Marketers use this technique to increase their sales volume in the early
stages of the product life cycle. It means offering a small quantity of a product free in
order to persuade customer to try the product.
v. Money Refund and Rebates: In case of money refund, the customer receives a
specific amount of money (refund) after he submits a proof of purchase to the
manufacturer. Manufacturers devise the strategy such that the customer qualifies for a
refund only when he makes multiple purchases. It is a kind of offer of a refund of
money to customer for mailing in a proof of purchase of a particular product, it
induces trial from primary users and motivate several product purchases.
vi. Frequent User Incentives: Repeat purchases may be stimulated by frequent user
incentives. Hence, firms offer incentive schemes to reward their loyal customers. The
best example of this is the frequent flyer scheme offered by airlines.
vii. Consumer Contest: In this method of sales promotion, customers take part in small
competitions on the basis of their creative and analytical skills. Customers are invited
to compete on the basis of creative skill, such contests create brand awareness and
stimulate interest in the brand, and it acquaints consumers with brand usage and
benefit.
viii. Trade Shows: A group of retailers or manufacturers conduct exhibitions and trade
shows to make the customer aware of the products offered by various firms. Industrial
shows and annual industrial exhibition, exhibition of home appliances, consumer
goods or gym equipment, etc. are examples of this type of sales promotion.
ii. Buyback Allowance: In this method, intermediaries are offered a monetary incentive
for each additional unit purchased after the initial deal. This method aims at
stimulating the channel members to purchase additional quantities of stock that is
over and above the normal stock, as the monetary incentive they receive is
proportional to the amount of additional stock they purchase.
iv. Free Merchandise Schemes: In this sales promotion technique, an additional amount
of the product is offered without any additional cost, as an incentive to purchase a
minimum quantity.
vi. Dealer Gift: It is a reward or gift which is offer of useful articles and attractive gift to
dealers for personal, family or office use. Retailers obtain gifts only when they buy
specific quantities of goods or fulfill a given sales target. Marketers use this technique
when they use new distributors or they want to push products to retailers. For
example - a silver tray to display a product. When the event is over, the retailer is
allowed to keep the silver tray.
A firm may use the strategy of refunding a part of the price paid by the customer on the
production of some proof of purchase of its product. For instance, the buyer of two cakes of a
branded soap may be refunded Rs. 5 on returning the empty packages to the dealer.
4. Discount Coupons
A discount coupon is a certificate that entitles its holder to a specified saving on the purchase of
a specified product. Coupons may be issued by the manufacturers either directly by mail through
sales-force or through the dealers. The coupons are also issued through newspapers and
magazines. The holders of coupons can go to the retailers and get the product at a cheaper price.
The retailers are reimbursed by the manufacturer for the value of coupon redeemed and also paid
a small percentage to cover handling cost. But many retailers do not patronize this method
because it involves financial and accounting problems for them.
5. Packaged Premium
Under this, the seller offers premium to the buyer by way of supplying a gift along with the
product or inside the product package. Premium on sales helps the salesman to make effective
presentation, stimulate sale in a particular area, lead to enlistment of new customers and have the
way for introducing new brands in the market. Premiums are generally given in the case of
customer convenience goods such as packed tea leaves, blades, tooth-pastes and toilet soaps.
6. Container Premium
Several firms use container premium to push the sale of their products. For instance, Taj Mahal
tea leaves, Ariel detergent powder, Bournvita, Kissan jams, etc. are made available in special
containers which could be reused in kitchens after the product has been consumed. The reusable
containers for packaging often have special appeal to the consumers who don't have to pay
anything extra for the product.
7. Contests
There may be consumers' contests, salesman's contests and dealers' contests. Contests for
salesman and dealers are intended for inducing them to devote greater efforts or for obtaining
new sales idea in the task of sales promotion.
Contests for consumers may center around writing a slogan on the product. Such slogan Centre’s
around the questions as to the liking of a customer for the product, or formulation of new
advertising idea for the product. Such contests are held through radio, T.V., newspapers,
magazines, etc.
8. Public Relations
Public relations activities strive for creating a good image of the enterprise in the eyes of the
customers and the society. These activities are not aimed at immediate demand creation. It is
very common that big business enterprises convey their greetings and thanks to the people
through newspapers and other media.
9. Free Gift
The customer does not get any benefit at the time of purchase, rather he gets it through mail. For
this he has to send the proof of purchase (e.g., cash memo and wrapper) to the manufacturer to
claim the gift which might be a diary or book or any other item. The gift is sent by the
manufacturer by mail or through courier.
10. Exchange Offer
It means exchange of an old product with the new one after payment of the exchange price fixed
by the manufacturer. Such offers are very common these days in case of electric irons, TVs,
refrigerators, scooters, gas stoves, washing machines, etc.
11. Product Combination or Gift
It refers to giving a free gift on purchase of a product. Generally, the free gift is related to the
product but it is not necessary. For example, Mug free with Bournvita, Toothbrush free with
Toothpaste, DVD free with TV, Vacuum cleaner free Fridge, etc.
12. Instant Draws and Assured Gifts
Some sectors offer instant draws and assured gifts to their customers when they make purchases.
The scheme may be like - "Scratch a card (or burst a cracker) and instantly win a car, A.C.,
fridge, T.V., computer or electric iron on the purchase of a T.V."
13. Full Finance @ 0%
Manufacturers of durables like bikes, T.V., A.C., etc. offer easy financing schemes even a 0%
rate of interest e.g., "Pay Rs. 10,000 in cash and Rs. 30,000 in 12 equal instalments of 2,500 each
by postdated cheques and get a bike on the spot." This tool of promotion misleads a customer
and so should be avoided by the marketers
i. Sample: Also known as consumer sample or free samples and given to consumers to
introduce a new product or to expand the market. The consumers are expected to be
convinced to use the product.
ii. Demonstrations or Instructions: These are instructions given to aware the consumers
about using the product. This method may be used in products like washing machine.
iii. Coupon: It is a certificate that reduces the price. When a buyer gives a coupon to the
dealer or retailer, he gets the product at lower price. It gives expected result.
iv. Money-Refund Orders: The technique indicates refund of full purchase price if the
buyer so wants. It is helpful in the introduction of a new product. Refund offer creates
additional interest and increases sales considerably. It is a good device for creating new
user and to strengthen the brand loyalty.
v. Premium (Gift) Offers: These are temporary price reductions, which appeal to bargain
instinct. Towels, dinner ware, hair-brushes, key-chains, artificial flowers, ball pens, toilet
soaps, bathing soaps, blades, are given as in-pack premiums. BUY ONE GET ONE,
BUY TWO GET ONE FREE are the usual offers made to the customers to appeal them.
vi. Price-Off: The price off label is printed on the package that is a certain amount is
reduced from the actual price to woo the customers. It gives a temporary discount to the
consumers.
vii. Contests or Quizzes: These are held to stimulate consumer's interest in the product. In
these contests, participants compete for prizes on the basis of their skill or creative ideas.
In this type of sales promotion, prizes are offered in kinds (especially the products of the
company) and sometimes a payment is given to the participants.
viii. Trading Stamps: Trading or Bonus stamps are issued by retailers to customers who buy
goods from there. The number of stamps given to a buyer depends upon the amount of
purchases made by him. Stamps are issued at predetermined percent rate of the purchase
amount.
These stamps are given free of charge and the customers can redeem them to obtain
products out of the specified list. This technique induces customer to buy their
requirements from the retailers who offer such stamps. The purpose is to increase
customer loyalty.
ix. Fairs and Exhibitions: Trade shows, fashion shows or parades, fairs and exhibitions are
important technique/tools of sales promotion. They provide a forum for the exhibitions or
demonstration of products. Free literature can be distributed to introduce the firm and its
products to the public. Fairs and exhibitions are organized usually by big firms or trade
associations. At these fairs and exhibitions, business firms are allotted stalls wherein they
display their products and attract the customers through gifts, special concessions and
free demonstrations of technical and specialty products.
xi. Exchange Scheme: This technique offers to exchange the old product with new one in
payment of a fixed amount which is less than the original price. For example, exchange
of old Black & White Television for Color Television by paying rupees 8000 only
(original price is rupees 10000) was offered by a particular producer of color TV sets.
ii. Retail Demonstrations: These are arranged by manufactures for preparing and
distributing the products as a retail sample, for example, Nescafe Instant Coffee was
served to consumers for trying the sample on the spot of demonstration regarding the
method of using the product.
iii. Trade Deals: These are offered to encourage retailers to give additional selling support
to the product, e.g., tooth paste sold with 30% to 40% margin.
iv. Buying Allowance: Sellers give buying allowance of a certain amount of money la,
product bought.
vi. Advertising and Display Allowance: These are also offered to retailers to popularize the
product and brand name of the manufacturer.
vii. Contests: Sales contests are held for salesmen. These are usually aimed at increasing the
performance of the sales persons.
viii. Dealer Loader: A gift for an order is a premium given to the retailer for buying certain
quantities of goods or for special display done by the retailer.
ix. Training for Salesmen: Periodical training programs are conducted by dealers and
distributors for salesmen to give them a better knowledge of a product and its usage.
Dealer sales promotion provides the selling devices. Sales promotion devices at the point
of purchase inform, remind, and stimulate buyers to purchase products.
People who see these devices are in a buying mood and thus they can be easily persuaded to buy
those products. Tell tags are informative labels affixed on the product, describing in detail the
features of the product and its unique selling points. Counter, top racks, posters, mechanized
signs are other point-of purchase displays.
b) Creates new content and communication opportunities - One of the easiest ways to
create new content for your customers is to create news by using sales promotion.
c) Creates upsell and cross sell opportunities - When you package or bundle products
around a theme or solution, you can often generate sales of multiple items rather than a
single item.
d) Drives customer decision making - Limited availability offers can create a sense of
scarcity in your customers that get them to act. If you can add sampling of your
promotional item to the mix, you can create compelling reasons to buy.
f) Creates training opportunities for staff - Promotions give a chance to train, prepare
and re-engage the sales staff in what's new in the business;
g) Creates testing opportunities - Promotion gives a limited time window to test new ideas
and new products and to measure them. This will help to figure out whether they warrant
additional investment of time and money to make them permanent products or services;
h) Grows revenue - Sales promotions are a great way to build year-over-year and month-
over- month revenue growth.
PUBLICITY
Publicity is any promotional communication regarding an organization and/or its products where
the message is not paid for by the organization benefiting from it. Publicity involves giving
public speeches, giving interviews, conducting seminars, offering charitable donations,
inaugurating mega events by film actors, cricketers, politicians, or popular personalities,
arranging stage show, etc., that attract mass media to publish the news about them.
Publicity is undertaken for a wide range of purposes like promoting new products, increasing
sales of existing product, etc. It also aimed at highlighting employees' achievements, company's
civic activities, pollution control steps, research and development successes, financial
performance, its progress, any other missionary activities, or social contribution.
CHARACTERISTICS OF PUBLICITY
Key characteristics of publicity have been briefly described in following part:
I. Mass communication: Publicity is not a paid form of mass communication that involves
getting favorable response of buyers by placing commercially significant news in mass
media. It involves obtaining favorable presentation upon radio, newspapers, television, or
stage that is not paid for by the sponsor.
II. Non-paid Form: Publicity is not a paid form of communication. It is not directly paid by
producer. However, it involves various indirect costs. For example, a firm needs some
III. Various Media: Mostly, publicity can be carried via newspapers, magazines, radio, o
television. For example, in case a product is launched by popular personality in a grand
function, the mass media like newspapers, television, radio, magazines, etc., will
definitely publicize the event.
IV. Objectives: Sales promotion is undertaken for a wide variety of purposes. They may
include promotion of new product, pollution control, special achievements of employees,
publicizing new policies, or increase in sales. It is primarily concerns with publishing or
highlighting company's activities and products. It is targeted to build company's image. In
a long run, it can contribute to increase sales.
V. Control of Producer: Company has no control over publicity in terms of message, time.
frequency, information, and medium. It comes through mass media like radio,
newspapers. television, etc. It is given independently by the third party. It is presented as
a news rather than propaganda.
VII. Part of Public Relations: Publicity is a part of broad public relations efforts and
activities. Public relations include improving, establishing, and maintaining direct
relations with all publics. Publicity can help improve public relations.
VIII. Costs: Publicity can be done at much lower cost than advertising. Company needs to
spend a little amount to get the event or function publicized.
IX. Effect: Publicity message is more likely to be read, viewed, heard, and reacted by
audience It has a high degree of believability as it is given by the third party.
X. Repetition: Frequency or repetition of publicity in mass media depends upon its social
significance or the values for news. Mostly, it appears only once.
IMPORTANCE OF PUBLICITY
Like advertising and sales promotion, sales can be increased by publicity, too. Publicity carries
more credibility compared to advertisement. Publicity is cost free; it doesn't involve direct cost.
Publicity offers a lot of benefits to the producers and distributors. Importance of publicity can be
made clear from the below stated points:
1. Publicity is an effective medium to disseminate message to the mass with more
credibility. People have more trust on news given by publicity.
2. The credibility level of publicity is much higher than advertising and other means of
market promotion. People express more trust on what the third party independently says.
It appears directly through newspapers, magazines, television, or radio by the third party.
It is free from bias.
3. It provides more information as the valuable information is free from space and time
constraints. Similarly, publicity takes place immediately. No need to wait for time or
space in mass media. It enjoys priority.
4. The firm is not required to pay for publicity. The indirect costs related to publicity are
much lower than other means of promotion.
7. Publicity directly helps middlemen and sale persons. Their tasks become easy. Publicity
speaks a lot about products on behalf of middlemen and salesmen. Sellers are not
required to provide more information to convince the buyers.
8. It is suitable to those companies which cannot effort the expensive ways to promote the
product.
PUBLIC RELATIONS
“Public relations are a strategic communication process that builds mutually beneficial
relationships between organizations and their publics.”
Public relations (PR) refer to the variety of activities conducted by a company to promote and
protect the image of the company, its products and policies in the eyes of the public.
3. Relatively Low Cost: It is much cheaper, in terms of cost per person reached, than any other
type of promotion. Apart from nominal production costs, much PR activity can be carried out at
almost no cost, in marked contrast to the high cost of buying space or time in the main media.
4. Relatively Uncontrollable: A company has only a little direct control over the proceedings of
public relations activity. If successful, a press release may be printed in full, although there can
be no control over where or when it is printed. A press release can be misinterpreted and result
may be unfavorable news coverage. This is in contrast to advertising, where an advertiser can
exercise considerable control over the content placing, and timing of an advert.
5. Credibility: PR activity. results in a high degree of credibility as compared to other
promotional sources like advertising. As the audience may regard such a message as joining
from an apparently impartial and non-commercial source. Where information is presented as
news, readers or viewers may be less critical of it than if it is presented as an advertisement,
which they may presume to be biased.
and accurate information to the concerned publics and assure them of remedial measures taken to
control the crisis.
DIRECT MARKETING
Direct marketing enables organizations to communicate directly with the end-users. Various
tools for direct marketing are emails, text messages, catalogues, brochures, promotional letters
and so on. Through direct marketing, messages reach end-users directly.
EVENT SPONSORSHIP
Event Sponsorship is a way of advertising your brand by "sponsoring" or supporting an event
financially in exchange for brand exposure to highly engaged attendees. Event sponsorship is
when an organization provides financial assistance to an event to achieve promotional
advantages.
Sponsorships can come in the form of a cash exchange for assets or a barter exchange involving
products or services.
A business sponsorship is an organization's support of an event or activity, like a nonprofit,
organization, group, trade show or local sports team, which usually comes in the form of a
financial contribution. Organizations use sponsorships as a marketing tool so that they can gain a
competitive advantage and reach business goals.
Unlike advertising, which shares specific messages about a company or product in the hopes that
it will increase sales, sponsorships improve a brand's recognition and reputation because they
support specific events that your target audience cares about. As a result, prospective customers
associate your company with the event or activity.
Sponsorship gives companies invaluable exposure by allowing them to reach and connect with
quality audiences, which often results in business growth.
roles are usually negotiable, meaning you can work out an agreement that gives your company
the level of exposure you're hoping for. Before the event, you should determine what goals
you're hoping to achieve. You can then choose an effective metric to measure your success and
decide if that specific sponsorship is worth doing again.
2. Build business relationships
Sponsoring an event or trade show can help your company make connections with non-
competing businesses, giving you opportunities for collaboration in the future. Aside from
having a strategy for engaging new customers, you should also prepare a plan to introduce
yourself and your company to other sponsors and professionals in attendance.
3. Gain valuable insights
You can learn a lot from sponsoring an event, including the:
Newest industry trends or business ideas
Unique selling proposition (USP) of other companies
Strategies other businesses use to attract new customers
4. Expand its content strategy
Sponsorships can provide a great source of new material for a company's content strategy. By
promoting your involvement in an event or activity, you can drive traffic from the event and
increase your engagement. A great way to do this is by creating content themes and hashtags.
Additionally, you can connect with the host on social media and find new target audiences.
Aside from the content your company creates, you can also benefit from the exposure you gain
from the social content of attendees. Most attendees share blogs, videos, quotes and photos
during event, potentially exposing your brand to a much larger audience.
5. Foster a positive reputation
Perhaps one of the biggest benefits of event sponsorship is that it can strengthen your company's
image. People typically enjoy supporting brands that invest in their community and spread
positive messages. By sponsoring an important cause, you can attract media attention, set your
company apart from larger brands and inspire brand loyalty. Determine what your target
audience cares about, and choose causes that align with these values in some way.
6. Generate leads
Brand loyalty is largely dependent on emotional connections. By sponsoring events, you can
gain exposure to prospective customers and highlight the human side of your company.
Additionally, when a representative of your company attends the events you sponsor, you can
learn valuable information about your customers, develop a mailing list and promote your
services or products. Event hosts can usually provide you with information about the attendees
beforehand, such as the attendance rates. If you conduct research in advance, you can develop a
strategy for creating as many leads as possible.
7. Reach sales goals
Aside from gathering leads, you can also generate immediate sales at a consumer evert Look for
events that have high attendance rates and a limited number of direct competitors. In some cases,
you can ensure that you're the only vendor in your particular market category by paying an
additional fee.
8. Benefit from association
You can often grow your company's positive reputation through branded event marketing. When
a company sponsors events or organizations, people often assume that it is reputable and reliable.
As a result, consumers have a higher likelihood of purchasing services or products associated
with the brands sponsoring high-profile events.
9. Boost brand visibility
Sponsorships can increase brand recognition before, during and after the actual event by giving
your company exposure to new audiences. This often happens through mentions in the press or
social media and event advertising, like radio spots, signs and featured ads. You can take
advantage of this exposure by offering attendees free branded materials through promotional
giveaways.
10. Engage niche markets
By choosing events that attract your target audience, you can ensure that you're connecting with
high-quality leads that are interested in your solutions or products.
11. Showcase a service or product
Events provide a great setting for launching feature updates or new products. You can increase
your traffic by promoting launches and other incentives, like giveaways, on social media before
the event.
12. Gain a competitive advantage
When you sponsor an event, you automatically gain an advantage over your absent direct
competitors.
event sponsorship allow for the venue to gain exposure, but it also gives the organization a great
place to host their event.
Prize Sponsors: Prize sponsors choose to donate specific items with their logos for event
participants. They are a popular choice when you want to boost engagement in your event.
You may hand these items out as activity-based prizes for winners. However, you should
customize them to suit your business needs.
For example, if you are a local gym membership-based organization, prize sponsors may want to
donate customized weights or other gym equipment. It keeps your attendees happy while
promoting the event sponsor at the same time.
Food Sponsors: An event isn't complete without food. Delectable meals can indeed elevate the
attendee experience. You can even boost everyone's interest by offering free food.
Catering is more expensive due to higher manpower. Therefore, It's essential to find a loos
sponsor for your next big event.
It can yield significant results, like increasing event attendance and encouraging mingling among
participants.
Digital Sponsors: You can usually find digital sponsors during tech-related events. They
provide either an app for the event, poll questions, media walls, or live tweets.
With the recent switch in technology, digital sponsors are becoming increasingly popular in the
event planning industry.
People enjoy fast response time and personalization. Event Venues can benefit from digital
sponsors as there's a growing trend in digital event spaces popping up across the globe's most
tech-driven cities.
Keep in mind that in-kind sponsorships are not limited to these four examples. There are plenty
of ways to find the right ones that bring value to both the sponsor and the organization.
3. Media Event Sponsorship
The use of smartphones grows rapidly, which affects the global and localized forms of direct
marketing. Technological advancements contribute to the recent shift in the appeal of media
sponsorships.
A report says that 78% of the population is now smartphone users-compared to only 17% in
2008. Due to the surge in digital activity from gadgets, companies are now advertising their
events more through media sponsorships, primarily through social media.
Given the budgetary constraints that nonprofit organizations and events tend to face, this type of
sponsorship most suits them.
Having readily available media sponsors is key exposure tactics for the advertisement and
publicity purposes of smaller companies.
When media sponsors are present, the organizations spend less time and money on the
advertisements. Moreover, they and do not face the difficulty of purchasing the media coverage
they often require. Finding the right media sponsor for your organization is vital when
determining the success of this partnership. Similarly, you need to prepare sponsorship packages
that show how they can benefit sponsors to attract their interest more.
If you want to be your own media sponsor, Glue Up's CRM software allows you to keep all
contact information and activity tracking up-to-date in a single location. You can send out email
campaigns to promote your events with ease using our reliable event management software.
4. Promotional Partners
Compared to media sponsors, promotional partners are individual people who have a large
following on social media. They can promote your organization's event to their individual fan
base.
Instagram has become a modern approach for brands to promote their products and drive sales.
According to the photo and video app company, 60% of people claim they found new products
on the platform, while 20% of users browse a business profile every day. In line with this,
research says 81% of consumers say they're more likely to buy products they have encountered
on social media.
When it comes down to it, any kind of event sponsorship will be crucial if your organization
wants to continue growing and promoting its business. Plus, it's an excellent opportunity for your
organization to reach out to other companies and create lasting connections.
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