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INTEGRATED MARKETING COMMUNICATIONS

Role & benefits of advertising


Advertising is often the first thing that comes to mind when one is considering marketing communications. Advertising also consumes a major portion of the promotional budget. Question sometimes asked is whether advertising is important enough to merit such a position. Its importance must be determined on a case to case basis as a marketing communications plan is developed.

Why is advertising important?


1. 2. 3. 4. 5. Mass audiences / large coverage; Mass audiences / selective coverage; Low unit cost because of mass audience; Efficient and effective; Successful at brand maintenance / development 6. Useful for maintaining competitive advantage. Some caveats: /caution. Success of advertising depends on sound planning and implementation. Continuous presence of advertising is beneficial for brand sustenance, but diminishing returns can set in.

What IPA says about Advertising


Institute of Practitioners in Advertising observes that:
really Advertising impacts customer value through its effect on perceived quality; How money is spent matters not how much more; The nature and content of advertisements

does matter. Product image or company reputation affects the customers perception of quality and therefore value.

Promotional Mix & AIDA


A generalized view of relative merits of each broad category of promotions mapped against AIDA:
Advertising Awarenes s Interest Desire Action

PR & Publicity
Sales Promotion Personal Selling

Promotional Mix & AIDA


Advertising like PR raises awareness, generates interest and enhances brand development; PR, Sales Promotion and Combined with Personal Selling, each contributing in its own way, the effect on sales is potent; Advertising can take many forms, from softsell (emphasizing brand image and attributes) to hard-sell; Most advertising attention focuses on display ads but classified advertising accounts for a significant proportion of advertising and generates a sizable amount of business as well.

Is Advertising a Strong force or a Weak force?


Recent debate has focused on understanding whether advertising is a strong force as suggested by J. P. Jones of a weak force as argued by A. S. C. Ehrenberg.
Strong force supporter Jones contends that: Sophisticated sales analysis indicates advertising has a direct and positive effect on sales. It works by: Persuading people to buy; Creating and building brands; and Differentiating between brands.

Is Advertising a Strong force or a Weak force?


Weak force proponent Ehrenberg argues that while empirical evidence does suggest a advertising has a significant effect on sales it is not through the mechanism of persuasion and brand differentiation.
As a weak force advertising works through: Reinforcing values, Maintaining brands and Defending market share.

Is Advertising a Strong force or a Weak force?


Strong force argument is logical, and has been accepted for many years as the basis of how advertising works despite the absence of empirical evidence to support it. Jones suggests that: Without awareness sales would not occur, even impulse purchase requires some awareness; Advertising presents information to support product purchase by differentiating between competing brands.

Is Advertising a Strong force or a Weak force?

Is Advertising a Strong force or a Weak force?


Ehrenberg argues that advertising does make the market aware and provide sufficiently enticing messages to generate interest and desire to purchase. BUT, other promotional tools affect the final outcome i.e. sales. In a competitive market scenario advertising can be counted upon to create brand differentiation and customer preference but purchase decisions are not always logical and sequential.

Some conclusions
have Researchersshifts observed that attitudeperception are easy to observe while
tracking the introduction of a new brand, but devilishly difficult to observe with regard to established brands. It has generally been accepted for a long time that that consumers are rarely loyal to a single brand. They tend to have a portfolio of brands to which they are loyal, switching between them as they desire.

Some conclusions
There is a lack of consensus about how advertising works. Reason: It is complicated by numerous interrelated factors:
The cumulative effect of the use of many promotional tools at the same time; Impact of previous promotions and prevailing market perceptions; Consumers own varied responses to promotional activities; Non-controllable, exogenous variables occurring at the time the promotion is run distribution gaps, price instability, economic and political environment.

Public Relations

Public Relations: One of four broad areas of IMC


Some suggest that PR is part of Marketing, others

that Marketing is part of PR. PR practitioners argue that PR is fundamentally about enhancing corporate reputation and generating and maintaining goodwill
In practice, however, PR and marketing have much

in common. PR therefore needs to be seen as an integral part of the total communications effort.

Public Relations: One of four broad areas of IMC


PR programs themselves are composite marketing

campaigns involving several integrated promotional activities: PR events may be organized involving sales promotion or exhibition activities; Direct mail may be used to send out invitations; Personnel may be involved in hosting and selling the products or ideas;
Sponsorships may support the entire PR
program. used full page newspaper ads as part of a PR Philip Morris

campaign when it had to recall Marlboro cigarettes because of contamination.

PUBLIC RELATIONS EMERGENCY

PHILIP MORRIS U.S.A. RECALLS CIGARETTE BRANDS


New York, state, United States May 26, 1995 /PRNewswire/ -- The following statement has been issued by James J. Morgan, President and Chief Executive Officer, Philip Morris U.S.A., New York: Philip Morris U.S.A. is voluntarily initiating a pre-emptive and precautionary recall of a number of its cigarette brand packings because a small percentage have defective filters that could cause temporary discomfort to smokers. The products being recalled are on the attached list. These products were manufactured over a short period of time in our domestic facilities. We have stopped the distribution of the affected product, and we have no evidence that any of it is being sold at retail. In fact, it is possible that none has reached retail outlets. The defect is attributable to a material purchased from an outside vendor and used in manufacturing filters. The material, a plasticizer, was contaminated at the vendor's facility. The contaminant triggered a reaction that formed a substance known as methyl isothiocyanate (MITC). Cigarettes made with the defective filters may give off a noticeable odor or have a metallic or other off-taste. Continued use of the affected product could result in temporary discomfort, including eye, nose and throat irritation, dizziness, coughing and wheezing. Pregnant women and persons suffering from respiratory conditions should avoid exposure to MITC.

Public Relations
There are numerous benefits associated with PR,

form of publicity or public PR is virtually anyorganizations, almost statement issued by


irrespective of its purpose .

such as its relative low cost, the increased credibility compared to other promotional tools, and the extensive visibility it can create.

Public relations practice is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics
(Institute of Public Relations)

Public Relations
Public Relations can also be used to benefit

individuals rather than organizations. Celebrities and PR often go hand in hand.


PR LAUNCHES A NEW CAREER The work of international publicists has rocketed Charlotte Church to stardom. In the space of a little over a year, this Welsh schoolgirl became an international singing celebrity. Her rapid rise to fame has been accelerated by media exposure Her first American release went immediately into No.1 position on the American classics chart

Public Relations & Marketing


Public Relations & Marketing are closely tied,

although they may not be described as being part of one another. Working in support of Marketing, Public Relations has a primary function to promote protect and project. This requires PR thinking to be extended to the entire organizations operations. Kotler and Mindak identified 5 models to depict the evolving relationship of Marketing & PR, from totally separate functions to integrated and overlapping functions.

Marketing & Public Relations = MPR

MARKETIONG COMMUNICATION

MARKETING

PR

Marketing & PR Are Integrated and Overlapping Functions

Marketing Public Relations (MPR)


MPR is the process of planning, executing and

evaluating programs that bring about enhanced consumer satisfaction, through credible and timely communication of information and impressions, that identify companies and their products with the needs, want, concerns and interests of Although the above definition focuses on consumers, consumers. MPR reaches out to more publics through a whole range of targeted actions and communications.

Marketing Public Relations (MPR)


The general areas of MPR include:

MPR planning & management Media relations Publicity Publications Corporate Communications Public affairs and community relations Lobbying Sponsorship/ donations Events management Crisis management Research & analysis

Marketing Public Relations (MPR)


MPR planning & management: involves

identifying tasks, setting objectives, defining publics, integrating MPR within the marketing communication mix, implementing & assessing effectiveness. Media relations: essential for achieving publicity/ editorial coverage.
Publicity: producing and releasing materials

such as media/ press releases to disseminate positive information. Publicity is largely viewed as free advertising. Publications: from employee newsletters to financial reports to consumer magazines and media packs.

Marketing Public Relations (MPR)


Corporate Communications: wide range of

communications activities well beyond the scope of MPR to cover corporate identity, programs, image, corporate advertising and internal communications; Public affairs and community relations: contact with government and government agencies, special interests & local community. Lobbying: maintaining positive relations with legislators, government officials to influence policy making and obtaining favorable decisions; Sponsorship/ donations: contribution

Marketing Public Relations (MPR)


Events management: staging of special

events, one-off events, conferences, occasions, media-meets etc.


Crisis management: dealing with

spontaneous or unforeseen negative events or circumstances. Contingency plan usually in place to deal with crisis.
Research & analysis: collection and

analysis of information to aid management, planning, implementation, evaluation & control.

MPR Publics
Consumers past, present and future &
PR Publics The choice of MPR publics depends on the task

at hand and the objectives the MPR is designed to cater to.

The Book

The fall of Advertising & the rise of PR


- Al Ries & Laura Ries

The fall of Advertising & the rise of PR

The fall of Advertising & the rise of PR

The fall of Advertising & the rise of PR

Thats all for now!

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