Advertising and Sales Promotion

A brief introduction to Integrated Marketing Communication (IMC)What is marketingMarketing is defined by the American Marketing Association (AMA) as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."Advertising and sales promotion play an important role in the exchange process by informing consumers about an organisations product/services and persuading them to purchase to satisfy their needs and wants.The Marketing MixThe marketing mix has been the key concept to advertising. The marketing mix was suggested by Jeremy McCarthy, professor at Harvard Business School, in the 1960s.The four Ps- Product, Price, Place(distribution), and Promotion are the elements of Marketing MixMarketers must combine these elements into a cohesive marketing strategy.Many companies recognize the need to integrate their various marketing communication efforts, such as media advertising, direct marketing, sales promotion, and public relations, to achieve more effective marketing communications.

Integrated Marketing CommunicationsIntegrated Marketing Communications is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing channels.

Online marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, micro-blogging, face book marketing, podcast, Internet Radio and Internet TV.Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, radio, and television.

company develops its integrated marketing communication programme using all the elements of the marketing mix (product, price, place, and promotion).An integration of all these promotional tools along with other components of marketing mix to gain edge over competitor is called Integrated Marketing Communication.

Role of IMC in BrandingA brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: Customers, Staff, Partners, Investors etc.With more and more products and services competing for consideration by customers who have less and less time to make choices, well known brand have a major competitive advantage in today's market.There are many ways for a company to contact the customer to provide them the information about the companyThe challenge is to understand how to use the various IMC tools in an effective way in a right combination. Tools of IMCAdvertisingDirect MarketingInteractive/Internet MarketingSales PromotionPublicityPublic RelationPersonal sellingAdvertisingAny paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor.

Types of advertisingDigital advertisingTelevision advertising / Music in advertisingRadio advertisingOnline advertisingProduct placementsPhysical advertisingPress advertisingMobile billboard advertisingIn-store advertisingCelebrity branding

Direct MarketingTraditionally this has not been considered as an element of promotional mix.The development of IT and Internet have made Direct Marketing a very powerful tool in marketing mix

Channels of Direct MarketingDirect Marketing is much more than direct mail and mail order catalog. It involves a variety of activities including Database managementDirect mailTelemarketingEmail MarketingDoor-to-Door Leaflet MarketingVoicemail MarketingCouponingDirect-response television marketingDirect selling

Interactive/Internet marketingThe definition of interactive marketing comes from John Deighton at Harvard, who says interactive marketing is the ability to address the customer, remember what the customer says and address the customer again in a way that illustrates that we remember what the customer has told us (Deighton 1996). Interactive marketing is not synonymous with online marketing, although interactive marketing processes are facilitated by internet technology.Interactive media allow for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time.Unlike traditional forms of marketing communication such as advertising, which are one way oriented, the new media allows users to perform a variety of functions such as receive and alter the information and image, make inquiries, respond to question, and ofcourse make a purchase.Although internet is the primary media of Interactive Marketing, There are other forms which includeCD-RMs, Kiosks, and interactive television.Sales PromotionSales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix). It adds an extra value or incentive to the sales force, the distributers, or the ultimate consumer and can simulate immediate sales.

Sales promotions are varied. Often they are original and creative, and hence a comprehensive list of all available techniques is virtually impossible.However it can be broken into two major categoriesConsumer oriented sales promotion andTrade oriented sales promotionConsumer oriented sales promotion is targeted to the ultimate user of a product or services and includes couponing, samples, premiums, rebates, contests, sweepstakes, and various point of purchase materials.Trade oriented sales promotion is targeted towards marketing intermediaries such as wholesalers, distributers, and retailers.Promotion and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tool used.PublicityNon-paid, non-personal communication to promote the organisation, products, services, idea or image of the company not directly done under an identified sponsorship.It usually comes in the form of a news story, editorial, or announcement about an organisation and/or its product and services.An advantage of publicity over other forms of promotion is its credibility.Consumers generally tend to be less skeptical towards favorable information about a product or service when it comes from a source they believe is unbiased.Publicity is not always under control of an organisation and is sometimes unfavorable.Public RelationsPublic Relations (or PR) is a field concerned with maintaining public image for high-profile people, commercial businesses and organizations, non-profit associations or programs.It defined the practice of public relations as "the art and social science of analyzing trends, predicting their consequences, counselling organizational leaders, and implementing planned programs of action, which will serve both the organization and the public interest."Publicity v/s Public RelationsIt is important to recognize the distinction between publicity and public relations.When an organization systematically plans and distributes information in an attempt to control and manage its image and nature of the publicity it receives, it is really engaged in a function known as public relations.Personal sellingPersonal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to "close the salePersonal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sales service).Kottler describes six main activities of a sales force:(1) Prospecting - trying to find new customers(2) Communicating - with existing and potential customers about the product range(3) Selling - contact with the customer, answering questions and trying to close the sale(4) Servicing - providing support and service to the customer in the period up to delivery and also post-sale(5) Information gathering - obtaining information about the market to feedback into the marketing planning process(6) Allocating - in times of product shortage, the sales force may have the power to decide how available stocks are allocatedIMC Planning ProcessThe individuals involved in promotion design a promotional plan that provides the framework for developing, implementing, and controlling the organization's integrated marketing communications program and activities.Promotion is one part of, and must be integrated into, the overall marketing plan and program.George E. Belch & Michael A. Belch brakes the IMC planning Process intoReview of the Marketing PlanPromotional Program Situational AnalysisInternal AnalysisExternal Analysis-Analysis of the Communication ProcessBudget DeterminationDeveloping the IMC ProgramMonitoring , Evaluation, and controlReview of Marketing PlanExamine overall marketing plan and objectivesRole of advertising and promotionCompetitive analysisAssess environmental influencesAnalysis of Promotional Program SituationInternal analysisPromotional department organizationFirms ability to implement promotional programAgency evaluation and selectionReview of previous program results

External analysisConsumer behavior analysisMarket segmentation and target marketingMarket positioningAnalysis of Communication ProcessAnalyze receivers response processesAnalyze source, message, channel factorsEstablish communications goals and objectivesBudget DeterminationSet tentative marketing communication budgetsAllocate tentative budgetDevelop IMC ProgramAdvertisingSet advertising objectivesDetermine advertising budgetDevelop advertising messageDevelop advertising media strategyDirect marketingSet direct marketing objectivesDetermine direct marketing budgetDevelop direct marketing messageDevelop direct marketing media strategy

Interactive/Internet marketingInteractive/Internet marketing objectivesDetermine Interactive/Internet marketing budgetDevelop Interactive/Internet marketing messageDevelop Interactive/Internet marketing media strategySales PromotionSet Sales Promotion objectivesDetermine Sales Promotion budgetDetermine Sales Promotion tools and develop messagesDevelop Sales Promotion media strategyPublicity/ Public relationsSet Publicity/ PR objectivesDetermine Publicity/PR budgetDevelop Publicity/PR messageDevelop Publicity/PR media strategy

Personal SellingSet personal selling and sales objectivesDetermine personal selling/sales budgetDevelop sales messageDevelop selling roles and responsibilitiesIntegration and Implement Marketing Communication StrategyIntegrate promotional- mix strategyCreate and produce adsPurchase media time, space, etcDesign and implement direct-marketing programsDesign and distribute sales promotion materialsDesign and implement PR/Publicity programsDesign and implement Interactive/Internet Marketing ProgramMonitor, Evaluate, and Control IMC ProgramEvaluate promotional program results/effectivenessTake measures to control and adjust promotional strategiesReferencesAdvertising and promotion An Integrated Marketing Communication Perspective George E. Belch & Michael A. BelchThank You