1. Prof Ashok Kumar

2. Text books : Advertising and Promotion 7th Edn
An Integrated Marketing Communication
perspective . By Blech .G and Blech
M and Keyoor Purani
Strategic Communications, Planning for
effective Public relation & Marketing .
5th Edn . By Dubuque, I.A Kendall / Hunt .

4. 2.1 Factors contributing to importance of IMC
2.2 Participants in IMC management,
2.3 IMC Planning Process
2.4 Structure of Promotion Industry,
Unit 3 IMC – Marketing Environment & 5
Understanding the Consumer Behavior
3.1 Understanding of Marketing Environment
3.2 Segmentation, Targeting and Positioning
3.3 Understanding the consumer buying
behavior
Unit 4 IMC- communication Process 4
4.1 Understanding IMC communication Process
4.2 Understanding the Massage, Objective and
4.3 budgeting for IMC
Response hierarchy models
Unit 5 IMC Strategies 4
5.1 Creative Strategy
5.2 Media Strategy
Unit 6 IMC Tool 9
6.1 Advertising
6.2 Sales Promotion
6.3 Public Relations & Corporate Advertising
6.4 Internet Advertising & E-commerce
6.5 Direct Marketing
6.6 Sponsorship & Point-of-purchase
6.7 Personal Selling & Sales Management

5. Unit 7 IMC –International Perspective 2
Unit 8 Legal, Social & Ethical Aspects of IMC 2
Unit 9 Case Studies and Guest Session & 5
Assignment

6. A management concept designed to make all aspects of
marketing communications such as internal , external
( advertising, sales promotion, online media, social network ,
public relations, and direct marketing ) , horizontal and vertical
work together as a unified force, rather than permitting each to
work in isolation.
Basic premise :
“The sum is always greater than their parts” – Provided they
speak consistently with one voice all the time, every time .
Why integration?
• Consistency, else confusion
• Clarity, else confusion
• Impact, since different Marcom tools have different strengths
• The tools of IMC thus need to be integrated

7. IMC’s aim : PERSUADE WITH TARGETED AUDIENCES TO
INFLUENCE ATTITUDES AND BEHAVIOR
Inform
Reinforce Persuade
Remind

8. MARKETING COMMUNICATIONS OBJECTIVES
• Increase Market Penetration
• Develop Repeat Purchase Behavior
• Establish Customer Relationships
• Increase Rate of Consumption
• Encourage Product Trial
• Stimulate Impulse Buying
• Stimulate Demand
• Differentiate the Product
• Establish a Product Image
• Influence Sales Volume
• Establish, Modify, or Reinforce Attitudes
• Develop Sales Leads
• Stimulate Interest
• Establish Understanding
• Build Support & Acceptance

10. The levels of integration such as Horizontal, Vertical,
Internal, External and Data integration help to
strengthen Integrated Communications.
Horizontal Integration occurs across the marketing mix
and across business functions - for example,
production, finance, distribution and communications
should work together and be conscious that their
decisions and actions send messages to customers.
While different departments such as sales, direct mail
and advertising can help each other through Data
Integration. This requires a marketing information
system which collects and shares relevant data across
different departments

11. .
Vertical Integration means marketing and communications
objectives must support the higher level corporate objectives
and corporate missions.
Internal Integration requires internal marketing - keeping all
staff informed and motivated about any new developments
from new advertisements, to new corporate identities, new
service standards, new strategic partners and so on.
External partners such as advertising and PR agencies,
channel to work closely together to deliver a single seamless
solution - a cohesive message - an integrated message.

12. Effective Marketing Communications
• Step 1: Identifying the target audience
– Includes assessing the audience’s perceptions of
the company, product, and competitors’
company/product image
• Step 2: Cognitive, affective, and behavioral
objectives may be set
• Step 3: AIDA model guides message design

13. Communication theory
According to Source Credibility Theory, acceptance of the
message depends on:
'Expertness' and Trustworthiness' of the source.
Expertness is defined as the perceived ability of the
source to make valid assertions.
Trustworthiness is defined as the perceived willingness of
the source to make valid assertions.
Target Audience acceptance increases with the
expertness of the source and the ability of the audience to
evaluate the product.

14. Message Content
Expertness Trustworthiness
Expertness is defined as Trustworthiness is
the perceived ability of the defined as the
source to make valid perceived willingness
assertions. of the source to make
valid assertions.
Acceptance
by target audience

15. According to Source Attractiveness Theory, which is based
on social psychological research, the acceptance of the
message depends on :
1.Familiarity, Likeability & Similarity.
Familiarity is the audience's knowledge of the source
through exposure.
2.Likeability is the affection for the source's physical
appearance and behavior .
3.Similarity is the resemblance between source and
receiver.

16. This theory explains the message acceptance in two ways:
Identification and Conditioning.
Identification is when the target audience begins to identify
with the source's attractiveness, and hence tends to accept
his opinions, beliefs, habits, attitudes etc.
Conditioning is when the attractiveness of the source is
supposed to pass on to the brand after regular association of
the source with the brand.

17. Brand communication strategy
without
having Consumer insight is
Like
winking at a pretty girl in dark.
“Ogilvy & Mather India” (O&M), India’s
largest advertising agency
17

18. Consumer
Decision
Value
delivery

19. Persuasive communication models to shift the attitude
Hierarchy-of-
AIDA Effects
Stages Model Model
Awareness
Cognitive Attention
stage
Knowledge
Liking
Interest
Affective Preference
stage
Desire Conviction
Behavior Action Purchase
stage

20. AIDA and Hierarchy of Effects
to persuade the target audience
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Attention Interest Desire Action
AIDA

21. Foote, Cone & Belding Grid for effective
communication strategy
Thinking Feeling
Involvement 2
1
High
Affective
Informative
Emotional
Strategy
appeal
3
Involvement
Habit 4
Low
Formation Self- ego
Consumer Satisfaction
Conditioning

22. Best Print Ads January 2012

25. Media Agency’s organization structure
Agency
Director
Market survey
Key Account Creative Media Planning Post
Finance and and
Management Planning & buying production
client billing Behavior
And services division Division Division
research

26. KEY Account Management – Within an advertising agency the account manager
or account executive is tasked with handling all major decisions related to a
specific client. These responsibilities include locating and negotiating to acquire
clients. Once the client has agreed to work with the agency, the account manager
works closely with the client to develop an advertising strategy. For very large
clients, such as large consumer products companies, an advertising agency may
assign an account manager to work full-time with only one client and, possibly,
with only one of the client’s product lines. For smaller accounts an account
manager may simultaneously manage several different, though non-competing,
accounts.
Creative Team –The principle role of account managers is to manage the overall
advertising campaign for a client, which often includes delegating selective tasks
to specialists. For large accounts one task account managers routinely delegate
involves generating ideas, designing concepts and creating the final dvertisement,
which generally becomes the responsibility of the agency’s creative team. An
agency’s creative team consists of specialists in
**GRAPHIC DESIGN SECTION
**COPY WRITING SECTION
**FILM PRODUCTION
**AUDIO PRODUCTION
**COMPUTER PROGRAMMING

27. Market Researchers – Advertising agencies employ market researchers who assess
a client’s market situation, including understanding customers and competitors, and
also are used to test creative ideas. For instance, in the early stages of an
advertising campaign researchers may run focus group sessions with selected
members of the client’s target market in order to get their reaction to several
advertising concepts. Researchers are also used following the completion of an
advertising campaign to measure whether the campaign reached its objectives.
**CONSUMER RESEARCH
**MARKET AUDIT
**MARKET SURVEYS
Media Planners – Once an advertisement is created, it must be placed through an
appropriate advertising media. Each advertising media, has its own unique methods
for accepting advertisements, such as different advertising cost structures different
requirements for accepting ad designs, different ways placements can be purchased
(e.g., direct contact with media or through third-party seller), and different time
schedules (i.e., when ad will be run). Understanding the nuances of different media
is the role of a media planner, who looks for the best media match for a client and
also negotiates the best deals.
**MEDIA SURVEY
*TARGET AUDIENCE STUDY
**MEDIA PLANNING
*MEDIA BUYING

28. IMC Plan
– An IMC plan outlines all the advertising or
marketing communication activities.
– Usually done on an annual basis
– Companies may develop a campaign plan,
which is more tightly focused on solving a
particular marketing communication problem.
– A campaign plan typically includes a variety of
messages carried in different media and
sometimes targeted to different audiences.

29. Regulation of
Promotion
Self-Regulation
• Association of Advertising council
Central Regulation
• Ministry of IB

30. STEPS of IMC Plan
•Situation analysis
•Marketing objectives
•Marketing budget
•Marketing strategies
•Marketing tactics
•Evaluation of performance

31. Message strategy
– Key Consumer Insight
– Big Idea
– Executions

32. Examples of Niche Agencies
• Media shops – Mindshare, Madison, Starcom
• Creative boutiques – Ray and Kesavan
• Event management agencies- Wizcraft
• Sales Promotion agencies
• Direct marketing outfits – Lintas Direct
• PR houses – Genesis
• Research suppliers – MARG, IMRB, Nielsen

33. Effects of communication
Message Knowledge Attitude From Grunig & Hunt (1984)
Behaviour

34. Media evaluation system
• Influence or tone
• Message communicated
• Prominence
• Audience reached
• Consultant/spokesman quoted
• Type of article

35. Evaluation model
Research methods
OUTCOME
Change
Quantitative surveys
behaviour
Focus groups
Change
attitudes
Understand messages Interviews
OUTTAKE Response analysis
Retain messages
Messages in the media Media content analysis
Message presentation Expert analysis
OUTPUT Message content Feedback
Media selection Observations
Source: Macnamara

36. Techniques for Setting Promotion
Budgets
• All - You - Can - Afford
• Competitive Parity
• Percent of Sales
• Market Share
• Objective and Task

37. Elements of the Promotion
Mix
Advertising
Public Relations
Ingredients
Ingredients
of the
of the
Promotion Personal Selling
Promotion
Mix
Mix
Sales Promotion
Internet Promotion

38. When Elements of Promotion Are Most
Useful
Advertising
Effectiveness
Personal
selling
Sales
promotion
Public
relations
Awareness Knowledge Liking Preference Conviction Purchase
Very effective
Somewhat effective
Either not effective or inefficient

39. Factors that Affect the Promotion
Mix
Nature of the Product
Stage in the Product Life Cycle
Target Market Characteristics
Type of Buying Decision
Promotion budget
Push–and–Pull Strategies

40. Creating a Promotion
Plan
Analyze the Marketplace
Identify Target Market
Set Promotion Objectives
Develop Promotion Budget
Choose Promotion Mix

41. Criteria for Setting Promotion
Objectives
Promotion objectives should:
be measurable, concrete
be based on sound research, with a
well-defined target audience
be realistic
reinforce the overall marketing plan and
relate to specific marketing objectives

42. Examples of Promotion
Objectives
Objective: To Inform (Awareness)
To increase the top-of-mind awareness level for Peter Pan
peanut butter from 16 percent to 24 percent
Objective: To Persuade (Attitudinal)
To increase the percentage of parents who feel that Peter Pan
peanut butter is the best peanut butter for their children from
22 percent to 35 percent
Objective: To Remind
To remind consumers that Peter Pan peanut butter is the
creamiest peanut butter and is available at their nearest grocery
and convenience stores

43. Effects of
Advertising
Diminishing
Return on Advertising Expenditures
returns
on additional
spending
Increasing efficiency
as ad budget becomes
sufficient
Advertising Spending

44. Major Types of
Advertising
Corporate Image
Institutional
Advertising
Advocacy Advertising
Types
Types
of
of
Advertising
Advertising
Pioneering
Product Competitive
Advertising
Comparative

45. Advertising Campaign Decision
Process
Determine the campaign objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.

46. Common Advertising
Appeals
Profit
Profit Save money, keep from losing money
Save money, keep from losing money
Health
Health Body-conscious, healthy
Body-conscious, healthy
Love or Romance
Love or Romance Sell cosmetics and perfumes
Sell cosmetics and perfumes
Social embarrassment, growing old, losing
Social embarrassment, growing old, losing
Fear
Fear health, power
health, power
Admiration
Admiration Celebrity endorsement effective
Celebrity endorsement effective
Convenience
Convenience Fast-food and microwave products
Fast-food and microwave products
Fun and Pleasure
Fun and Pleasure Vacations, beer, amusement parks
Vacations, beer, amusement parks
Vanity and Egotism Expensive, conspicuous items
Vanity and Egotism Expensive, conspicuous items

47. Executional Styles for
Advertising
Scientific Slice-of-Life
Musical Lifestyle
Demon-
Common
Common Spokes-
person/
stration Executional
Executional Testimonial
Styles
Styles
Mood or
Fantasy
Image
Real/
Animated
Humorous
Product
Symbols

48. Methods Used to Evaluate Advertising Campaigns
Pretests
Examples:
• Consumer jury tests
• Portfolio or unfinished rough tests
• Physiological tests
Post-tests
Examples:
• Recognition tests
• Recall tests
• Attitude measures
• Audience size measurement

49. The Tools of Public
Relations
New Product Publicity
Product Placement
Customer Satisfaction
Major
Major Phone Lines
Tools
Tools
Used By
Used By Consumer Education
PR
PR
Agency
Agency Event Sponsorship
Issue Sponsorship
Web Sites

50. Tools for Consumer Sales
Promotion
Coupons
Premiums
Six
Six
Categories
Categories Frequent Buyer Programs
of
of
Consumer
Consumer Contests and
Sales
Sales Sweepstakes
Promotions
Promotions
Samples
Point-of-Purchase
Displays

51. Tools for Trade Sales
Promotion
Trade Allowances
Push Money
Six
Six
Training Categories
Categories
of
of
Trade
Trade
Free Merchandise Sales
Sales
Promotions
Promotions
Store Demonstrations
Business Meetings,
Conventions, Trade-Shows

52. Advantages of Personal
Selling
Detailed
Detailed
Information
Information Message Control
Message Control
Targeted
Targeted
Cost Control
Cost Control
Closing Sales
Closing Sales

53. Advertising Versus Personal
Selling
Personal Selling is more important if...
The product has a high value.
It is a custom-made product.
There are few customers.
The product is technically complex.
Customers are geographically concentrated.
Advertising/Sales Promotion is more important if...
The product has a low value.
It is a standardized product.
There are many customers.
The product is simple to understand.
Customers are geographically dispersed.

54. Differences Between Traditional & Relationship
Selling
Traditional Personal Selling Relationship Selling
Sell products (goods and services) Sell advice, assistance, and counsel
Focus on closing sales Focus on improving the customer’s bottom line
Limited sales planning Considers sales planning as top priority
Spend most contact time telling Spend most contact time attempting to build a
customers about product problem-solving environment with the customer
Conduct “product-specific” needs Conduct discovery in the full scope of the
assessment customer’s operations
“Lone-wolf” approach to the account Team approach to the account
Proposals and presentations based Proposals and presentations based on profit
on pricing and product features impact and strategic benefits to the customer
Sales follow-up focused on product Sales follow-up is long term, focused on
delivery long-term relationship enhancement
Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,”
National Conference on Sales Management, Proceedings, March 1996.

55. Steps in the Selling
Process
Generating Sales Leads
Qualifying Sales Leads
Basic
Basic Making the Sales Approach
Steps in
Steps in Making the Sales
the
the Presentation
Selling
Selling
Process
Process Handling Objections
Closing the Sale
Following Up

56. Functions of Sales
Management
Set Sales
Evaluate Objectives Structure
Sales Force Sales Force
Manage Major Tasks of
Major Tasks of Determine
Sales Force
Turnover Sales
Sales Size
Management
Management
Develop
Motivate
Compen-
Sales Force
sation Plan
Train Sales Recruit Sales
Force Force

57. Cost Determinants of
200
Price
150
MC
Dollars
ATC
100
AVC
50
AFC
0
1 2 3 4 5 6 7 8 9 10
Quantity

58. Break-Even
Analysis
Total Revenue
Break Even Profits
Total Costs
Price ($)
Fixed Costs
Losses
Quantity (units)

59. Steps in Setting the Right
Price
Establish Pricing Goals
Estimate Demand, Costs,
and Profits
Choose Strategy
Fine-Tune Base Price
$ $ $ $ Price $ $
Right $ $

60. Legal and Ethical Issues in
Pricing
Unfair Trade Practices
Key Legal
Key Legal Price Fixing
and Ethical
and Ethical
Issues
Issues
Related to
Related to
Price Price Discrimination
Price
Predatory Pricing

61. Discounts, Allowances, and
Rebates
Cash
EDLP
Discount
Quantity Seasonal
Discount Price Discounts
Price
Reductions
Reductions
Functional Promotional
Discount Allowances
Trade Loading Rebates

62. Geographic
Pricing
FOB Origin
Uniform Delivered
Pricing
Pricing
Tactics
Tactics Zone Pricing
Based on
Based on
Geography
Geography
Freight-Absorption
Basing-Point

63. Special Pricing
Tactics
Single
Two-Part Price Flexible
Pricing Pricing
Bundle
Common
Common Professional
Pricing Special Pricing
Special Pricing Services
Tactics
Tactics
Odd-Even Price
Pricing Lining
Bait Leader
Pricing Pricing