5

IMC &
Advertising & Sales Promotion

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
 What is Marketing?

• An organizational
function Value

• Processes for creating,

communicating, and Relationship marketing
delivering value to
customers Mass customization
• Managing customer
relationships in ways Customer relationship
that benefit the management (CRM)
organization and its
stakeholders
 Marketing Mix

• The four Ps
Product

Price

Place

Promotion
 Contemporary IMC Approach

Sales Direct
Packaging
promotion response

Media
Point of
purchase Adver-
Public
tising relations
Publicity

Interactive
marketing Direct
Special
marketing
events
 What is Advertising

Advertising: identifies a product or store,

provides information about a product and
persuades people to buy things; also
defined as a paid form of persuasive
communication that uses mass and
interactive media to reach broad audiences
in order to connect an identified sponsor
with buyers (target audience), provides
information about products and interprets
the product features in terms of customer’s
needs and wants.
 Is Advertising the Only Tool in the
Promotional Toolkit?
There are several other tools in the
promotional toolkit such as:
●publicity - provides information about a new
product
●specialties - carry brand logos and incentives
to buy; handled by sales promotion companies
• Direct response: just to make traffic and
encourages direct action from a person.
 Cont..

• public relations - communication with

employees and shareholders about
brands and campaigns.
The bundle of tools is also called
marketing communication (marcom):
an umbrella term that refers to all
forms of communication about a brand
that appear in a variety of media
 Why Advertising?

Marketing and Communication Roles of

Advertising:
• advertising transforms a product into a
distinctive brand by creating an
image(ex. Apple’s 1984 commercial)
• advertising showcases brands, creates
consumer demands and reflects social
issues and trends.
 Economic and Societal Roles:

• Advertising flourishes in societies with

economic abundance where supply exceeds
demand...in these societies, advertising
extends beyond just providing information
and also has the role of creating demand for
a certain brand
 Advertising lowers prices by:

• If more people know about the

product, the higher the sales will be
and the cheaper the product will
become○as demand grows,
competition grows and prices begin to
drop
• ads also provide consumers with
information that they will then use to
assess value Advertising
appeals:emotional appeals:
 Cont

• persuades with emotions, images and

psychological appeals; emotional
appeals are very persuasive so
consumers tend to be loyal to the
brand
• Rational appeals: focuses on product
information and
 Types Of Advertising

• Brand Advertising
• Retail or local advertising
• Direct-Response advertising
• Business to Business
• Institutional advertising
• Nonprofit Advertising
• Public Service Advertising
 BRAND Advertising

• Brand advertising is a type of

advertising that enables brands to
reach out and convey a message
directly to its customers and achieve a
high level of brand awareness
 Retail Advertising

• Retail advertising can be divided into

local and national advertising. Local
merchants who own a single location
in a single market or trade area
engage in local retail advertising,
using local media to reach customers
living and working near their
establishments.
 Direct Response advertising

• direct response advertising.

Promotional method in which a
prospective customer is urged to
respond immediately and directly to
the advertiser, through the use of a
'device' provided in
the advertisement.
 B2B

• B2B” – refers to commerce between

two businesses rather than to
commerce between a business and an
individual consumer. Transactions at
the wholesale level are usually
business-to-business while those at
the retail level are most often
business-to-consumer (B2C).
 Institutional Advertising

• Corporate advertising:
It is the advertising done for an entire
institution/ company/ organization and
not for individual brands or products.
 NonProfit

• The various methods of marketing

such as slogans and other media
activities that are used by non-
profit organizations to promote the
message as well as to ask for
volunteers to help out with the
organization's mission. The message is
usually more sentimental than
necessity or use oriented.
 Public service

• A public service
announcement (PSA), or public
service ad, is a message in
the public interest disseminated
without charge, with the objective of
raising awareness of, and
changing public attitudes and
behavior towards, a social issue.
The Most Common Forms of Advertising

National Advertising

Retail/Local Advertising

Primary vs. Selective

Demand Advertising
Consumers

Business-to-Business Advertising

Professional Advertising

Trade Advertising
Organizations
 Key Components of Advertising

• Strategy
• Media
• Message
• Strategy:
– The Logic behind an advertisement is stated in
objective that focus on areas such as sales,
news, emotions, branding, reputation as well as
positioning and differentiation of the product
from the competition and segmenting and
targeting the best prospects.
• Message:
– The concept behind the message and how
that message is expressed is based on
research and consumer insights with an
emphasis on creativity.
• Media:
– Varrious media have been used by
advertisers over the centuries including
print, T.v, billboards etc.
 Agency World

• An advertising agency, often referred to as a creative

agency, is a business dedicated to creating, planning,
and handling advertising and sometimes other forms of
promotion and marketing for its clients.
 Key players

• The advertiser
• The Agency
• The Media
 Defining IMC

IMC is a strategic business

process used to plan, develop,
execute and evaluate coordinated,
measurable, persuasive brand
communication programs with
consumers, customers, prospects
employees and other relevant
external and internal audiences.

The goal of IMC is to

generate short-term
financial returns and build
long-term brand value.
 Growing Importance of IMC

• Strategic integration of
communications functions
– Avoids duplication
– Synergy among promotional tools
– More efficient and effective marketing
• Rapidly changing environment
– Consumers
– Technology
– Media
 The Role of IMC in Branding

• Brand identity is a combination of

– Name
– Logo
– Symbols IMC plays a major role
in developing and
– Design sustaining brand
– Packaging identity and equity

– Performance
– Image or associations
The Most Valuable Brands in the World

Brand Value
Rank Brand (Billions)
1 Coca-Cola $65.32
2 Microsoft 58.71
3 IBM 57.09
4 General Electric 51.57
5 Nokia 33.70
6 Toyota 32.07
7 Intel 30.95
8 McDonald’s 29.39
9 Disney 29.21
10 Mercedes-Benz 23.57
 Finding New Ways to Build Brands

• Get consumers involved

– Apple Computer lets consumers test
products in store
– Starbucks positions stores as a
community gathering place
• Interaction can be the best marketing
– MySpace
– Facebook
– Google
 The Promotional Mix

Advertising

Direct Marketing

Interactive/
Internet Marketing

Sales Promotion

Publicity/Public
Relations

Personal Selling
 Direct Marketing

Direct
Mail
Direct
Internet
Response
Sales Advertising
Direct
Marketing
Shopping
Telemarketing
Channels

Catalogs
 Using the Internet as an IMC Tool

The
Internet

Educates or A persuasive A sales tool

informs advertising or an actual
customers medium sales vehicle

Obtains Provides Builds and

Communicates
customer customer maintains
and interacts
database service and customer
with buyers
information support relationships
 Sales Promotion

Coupons
Samples Trade Allowances
Premiums
POP Displays
Contest/Sweepstake
Refunds/Rebates Training Programs
Bonus Packs Trade Shows
Loyalty Programs Coop Advertising
Events

Consumer-oriented Trade-oriented
[For end-users] [For resellers]
 IMC Audience Contact Tools

Public
Broadcast Internet/
Print media Relations/
media interactive
publicity

Out-of-home Direct
media marketing

Target Audience
Personal Sales
selling Promotion

Point-of- Word-of- Events and Product

purchase mouth sponsorship placements
 The IMC Planning Process

• Developing an integrated marketing

communications plan requires

Planning
Executing
Evaluating
Controlling
 Basic Elements of a Marketing Plan

1. A detailed situation analysis

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance

 Model of the IMC Planning Process
Review of marketing plan

Analysis of Promotional program situation

Analysis of communications process

Budget determination

Develop integrated marketing communications program

Sales PR/ Personal Direct Internet/

Advertising
promotion publicity selling marketing interactive

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program