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An Introduction to IntegratedMarketing Communications
McGraw-Hill/Irwin 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Integrated Marketing Communications
A marketing communications planningconcept that recognizes the value of acomprehensive plan.
A plan that evaluates the strategic roles ofseveral communications disciplines:
Media advertising Direct marketing
Interactive/internet marketing
Sales promotion
Publicity/Public relations
Combines the disciplines to provide: Clarity
Consistency
Maximum communications impact
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The Marketing &Promotional Mixes
Marketing Mix: Product or Service
Pricing
Channels of Distribution
Promotion
Promotional Mix: Advertising
Direct Marketing
Interactive/internet marketing Sales Promotion
Publicity/Public Relations
Personal Selling
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Promotional Program Situation Analysis
Analysis of the Communications Process
Budget Determination
Develop Integrated Marketing Communications Programs
Review of Marketing Plan
AdvertisingSales
Promotion
PR/
Publicity
Personal
Selling
Direct
Marketing
Advertising
Objectives
SalesPromotionObjectives
PR/Publicity
Objectives
PersonalSelling
Objectives
DirectMarketingObjectives
Message
Strategy
SalesPromotionStrategy
PR/PublicityStrategy
PersonalSelling
Strategy
DirectMarketingStrategy
Integration & Implementation of Marketing Communications Strategies
Monitor, Evaluate & Control Promotional Pro ram
Internet/
Interactive
Internet/InteractiveObjectives
Internet/InteractiveStrategy
Integrated Marketing Communications Planning Model
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REVIEW OF MARKETING PLAN
1. To examine overall marketing plan- What do you want toachieve or what is the objective?
2. Role of advertising in promotion- is it awareness orbuying behaviour
3. To do competitive analysis- analyse what you
competitor is doing4. Asses the environmental influence- such as value,
life style changes etc :Specifies the objectives to beachieved-
Market share Market leadership
Use of the 4 elements of marketing mix
Fix time frame for implementing various activities
Monitor and evaluate the success of marketing activities
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Coca-Cola is the worlds most valuable brand
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Analysis of Promotional Programme
1. Internal Analysis:
Product & service offered by the company The capability of the co. to implement the promotional
programme
Review of success and failures of the past programme
Decide promotional should be done either in-house orthrough external agency ( decide who )
Strength and weakness of the org by doing promotion &the image of product/service
External Analysis Consumer behaviour analysis
Market segmentation & Target Marketing
Market positioning
Competitor and environmental analysis
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IMC Program Situation AnalysisExternal Factors
Environmental analysis Technological Political/Legal
Demographic Socio/Cultural
Economic
Competitive Analysis Direct and indirect competitors
Position relative to competitors
Size of competitors advertising/
promotional budgets
IMC strategies being used by competitors
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IMC Program Situation AnalysisExternal Factors
Customer AnalysisWho buys our product or service?
Who initiates and makes the decision
to purchase and who influences the process?
How is the purchase decision made?What attributes or criteria are important to
customers?
What are customers perceptions of and attitudes
toward our company, product/service or brands?What factors influence the decision making process?
Contact points where customers can be reached?
De e op Integ ate Ma eting Comm nications P og am
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Any paid form of nonpersonal communication
about an organization, product, service, ideaor cause by an identified sponsor.
Deve op Integrate Mar eting Communications Program
Advertising
Disadvantages of advertising
High costs of producing
and running adsCredibility problems and
consumer skepticism
Clutter
Difficulty in determiningeffectiveness
Advantages of advertisingAdvertiser controls the
messageCost effective way tocommunicate with largeaudiences
Effective way to create
brand images andsymbolic appealsOften can be effective
way to strike responsivechord with consumers
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Develop Integrated MarketingCommunications Program
AdvertisingDetermine objectives and budgetMessage development
Called Creative Strategy Determine basic appeal
Determine main messageMedia strategy
Communication channels Type of media . . .
Newspapers/Magazines
Radio/Television Outdoor/Specialty
Select specific media Specific papers, magazines, TV
programs, radio stations, billboards, or
other media
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An example of a business-to-business ad
Source: Courtesy Honeywell.
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Marketing activities that provide extra
value or incentives to the sales force,distributors, or ultimate consumers andcan stimulate immediate sales.
Sales Promotion
Trade-oriented
Targeted toward marketingintermediaries such asretailers, wholesalers, ordistributors
Promotion allowances
Merchandise allowances
Price deals
Sales contests
Trade shows
Consumer-oriented
Targeted to the ultimateusers of a product orservice Coupons
Sampling Premiums Rebates
Contests
Sweepstakes
POP materials
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Sales Promotion Uses
Introduce new productsGet existing customers to buy more
Attract new customers
Combat competitionMaintain sales in off season
Increase retail inventories
Tie in advertising & personal sellingEnhance personal selling efforts
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Coordinating the promotional mix
elements to develop a controlled,integrated program of effectivemarketing communications.
Promotional Management
Considerations for developing thepromotional program include:
Type of product
Buyers decision process Stage of product life cycle
Channels of distribution
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A system of marketing by which
organizations communicate directlywith target customers to generate aresponse and/or a transaction.
Direct Marketing
Disadvantages of direct marketing
Lack of customer receptivity andvery low response rates
Clutter (too many messages)
Image problems particularly with
telemarketing
Advantages of direct marketingChanges in society have madeconsumers more receptive todirect-marketing
Allows marketers to be veryselective and target specific
segments of customersMessages can be customized forspecific customers.
Effectiveness easier to measure
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Direct Marketing
Direct marketing methods
Direct mail
Catalogs
Telemarketing
Direct response ads
Direct selling
Internet
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Publicity
Advantages of publicityCredibility
Low cost (although not totally free)
Often results in word-of-mouth
Disadvantages of publicityNot always under control of
organization
Can be negative
Nonpersonal communication regarding an
organization, product, service, or idea notdirectly paid for or run under identified
sponsorship.
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Publicity Vehicles
News Releases: Single-page news stories sent to media who
might print or broadcast the content.
Feature Articles: Larger manuscripts composed and edited for
a particular medium.
Captioned Photos: Photographs with content identified and
explained below the picture.
Press Conferences:
Meetings and presentations to invitedreporters and editors.
Special Events: Sponsorship of events, teams, or programs
of public value.
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Advertising Versus Publicity
FACTOR ADVERTISING PUBLICITY
Control Great Little
Credibility Lower HigherReach Achievable Undetermined
Frequency Schedulable Undetermined
Cost Specific Unspecified/low
Flexibility High Low
Timing Specifiable Tentative
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Public Relations
Tools used by PublicRelations Publicity
Special publications Community activity
participation
Fund-raising
Special event sponsorship
Public affairs activities
The management function which evaluates public
attitudes, identifies the policies and procedures ofan individual or organization with the public interest,and executes a program of action to earn publicunderstanding and acceptance.
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Direct person-to-person communication
whereby a seller attempts to assistand/or persuade perspective buyers toto purchase a product or service.
Personal Selling
Disadvantages of personal selling
High costs per contact Expensive way to reach large
audiences
Difficult to have consistent anduniform message delivered to
all customers
Advantages of personal selling
Direct contact between buyerand seller allows for moreflexibility
Can tailor sales message tospecific needs of customers
Allows for more direct andimmediate feedback
Sales efforts can be targetedto specific markets andcustomers who are bestprospects.
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A form of marketing communication through interactive mediawhich allow for a two-way flow of information whereby users can
participate in and modify the content of the information theyreceive in real time.
Interactive/Internet Marketing
Disadvantages of interactive/
internet marketing Internet is not yet a mass
medium as many consumerslack access
Attention to Internet ads is
very low Great deal of clutter on the
Internet
Audience measurement is aproblem on the Internet
Advantages of interactive/
internet marketingCan be used for a variety of IMC
functions
Messages can be tailored to
specific interests and needs ofcustomers
Interactive nature of the Internetleads to higher level ofinvolvement
Can provide large amounts ofinformation to customers.
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Interactive/Internet Marketing
Use of the Internet as an IMC ToolAs an advertising medium to inform, educate
and persuade customers
As a direct sales tool
To obtain customer database information
To communicate and interact with buyers
To provide customer service and support
To build and maintain customer relationships
As a tool for implementing sales promotion
As a tool for implementing publicity/public
relations programs
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Marketing and promotions process model
Opportunity Identifying Product Promotional Target Market
analysis Markets Decisions Decisions Promotion to
1 Advertising final buyer
2 Direct
Marketing
Competitive Market Pricing 3 Interactive Ultimate Consumer
analysis Segmentation Decisions Marketing Consumers
4 Sales Businesses
Promotion5 Publicity
Target Selecting a Channels of & Public
Marketing Target Market Distribution relations Promotion to trade
Decisions 6 PersonalSelling Resellers
Positioning
through
Marketing Purchase
strategies
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The Communication Process
Sender Encoding Channel
Receiver
DecodingResponseFeedback
Noise
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Analysis of Communication
There are 3 aspects in analyzing the communication
process
How does the consumer respond to marketing
communication
What stories, message and channel factor should beused to communicate with the consumer
Establish communication objectives: such as should
promotion create awareness or knowledge about the
product or should it create an image or favorableattitude
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IMC Communication Tools
IMC Communication Tools
AdvertisingDirect
Marketing
Interactive/
Internet Marketing
Sales
PromotionPublicity/Public
Relations
Personal
Selling
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Potential Communications Objectives
Individual salesCustomer loyalty
Company image
Brand image
Store patronage
Service contract
An inquiry
A visit by the prospect
Product trial
Prescription for use
Recommendation
Adoption of the product
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Communications Objectives
Informing Awareness
Interest
Benefits
Other information
Persuading Preference based on
competitive
advantages
Brand switching orprevention of brand
switching
Reminding
Trigger memories
Maintain preference
and buying habits
B d t D t i ti
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Budget Determination
It involves:
Setting a tentative objective for marketing Communication Allocating tentative budget after the communication objective
Promotional budget as to be decided.( 2 questions need to be
answered)
a) How much promotional programme will cost?
b) What percentage of sales revenue should be allocated towardsthe promotional programme?
This is known as Tentative budget.
S i l d i D l i IMC P
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Steps involved in Developing IMC Program
1. Creation of central theme for IMC campaign
2. Creative strategic planning development3. Creative strategic implementation and evaluation
4. Media planning and strategy
5. Selection of optimal media
6. Proposition of various mediums7. Evaluation of different media effectiveness- Broadcast, print,
outdoor, others
8. Deployment of direct marketing in IMC program
9. Deployment of internet as a promotional tool10. Deployment of sales promotion techniques
11. Developing public relations/publicity and corporate advertisingpromotional tool
12. Deploying personal selling as a promotional tool
The objectives of this ad include image
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The objectives of this ad include imagebuilding and encouraging inquiries
Contact Points Where Customers Can Be
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Contact Points Where Customers Can BeEffectively Reached
Mass media Broadcast - radio/TV
Newspapers
Magazines
Direct MarketingInternet/interactive
Brochures, salesliterature
Publicity/PR
Events/sponsorships Local
Regional
National/international
Sales PromotionsIn-store/POP
Product placements in moviesand television shows
Promotional products
Integrate & implement Marketing communication
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Integrate & implement Marketing communicationstrategies
The following steps are involved in implementation of the IMC
Integrate the promotional mix strategies
Create the necessary advertisement- both for message &
content
Purchase media, time and space
Design and distribute sales promotion material
Design publicity programme
Design and implement direct marketing programme
Design and implement interactive/internet
marketing programs
Monitor, Evaluate and Control Integrated
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Monitor, Evaluate and Control IntegratedMarketing Communications Program
Evaluate promotional programresults and determine
effectiveness
Take actions to control andadjust promotional programs
Eff ti f M k ti C i ti
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Effectiveness of Marketing Communications
As for as an effectiveness of reach is concern marketing communications plays a
vital role. Basically communication makes aware about your products and services
to the target audience. This is a major task for the marketing department.
It must be attentive, catchy or drive attention
It should be result oriented
It should be focused on feedback
It should be transformed in to diff modes of communication ex; WOM
It Should be flexible in nature
It should drive experience with in yourself
Advertising
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Advertising
Definition: Any paid form of nonpersonal communication about anorganization, product, service, idea or cause by an
identified sponsor.Purpose:
Generate primary demand and secondary demand
An enquiry
A visit by the prospect
Product trial
Prescription for use
Recommendation
Adoption of the product
Individual sales Customer loyalty
Company image
Brand image
Store patronage
Service contract
Roles of Advertising
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Roles of Advertising
Communication with the consumers:
Advertising is a major way ofestablishing communication between the manufacturer and the
consumer. Advertising acts as reminder to the existing consumers and attracts new customers as
well. therefore., we say that advertisements act as an effective communication vehicle with the
target audience.
Persuasion:Advertisements attempts to persuade the buyer.
Catalyst for change: Creative advertisement leads to the change in perception of thecustomer. Advertisement communicates about the product or service differentiating withrespect to other competitors. It includes the customer to change the product or the brand. Eg.Weight reduction tablet induces the customer to switch over for over for looking slim and trim.
Contribution to economic growth: Advertisements helps in developing new marketsegments. The development of new market segment means mobilizing for more demand,
leading to more production, generating more income and employment opportunities.And henceadvertisement is a potential weapon to improve the economic growth of the country.
Need for Non- Commercial Advertisements (NCA)
The non-commercial advertisement is mainly done in the public interest. Indian Cancer Societycampaigns with respect to How to prevent cancer. Advertising for a social cause is a part ofnon-commercial advertisement. Ex: Pollution prevention, Oneness of the state, Antidowry Campaigns, Children Immunization against diseases etc.
Functions of Advertising
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Functions of Advertising
Advertising informs the buyers about the existence of theproduct, its features, benefits & availability
It offers an incentive to buy by making several direct offerslike price-offs or exchange of an old to new one
It provokes us to try the product and once tried it remindsus
Advertising builds brands, gives an image and personality
to the brand It provides us reasons to buy particular brand.
It contributes brand preference and brand loyalty
Advertising helps us to choose out of several brandsavailable
Advertising being mass communication is the most costeffective way to reach consumers
Advertising thus reduces selling costs
Advertising persuades people to act.
ADVERTISING TYPES
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ADVERTISING TYPES
Advertising can be classified into 6 categories they are as follows
Consumer Advertising: Most of the consume products company encourage
product advertising. Marketers of cosmetics, detergents, soaps are included here.
Sponsors in this area compete with one another to establish an advantage for their
particular brand
Service Advertising: Service sector encompass such services as medical services,financial services, education services etc. In service advertising, the serviceprovider to sells his expertise. Its very difficult because 1) services are tangible,there is no transfer of ownership, difficult to differentiate, production/ consumptionare inseparable.
Industrial Advertising: The number of industrial advertising as percentage ofsales is much less compared to consumer product advertising. The task ofindustrial advertiser is very complicated because of the peculiar characteristics of
buyers. The demand being derived in nature, the advertisement may loose
the intensity of the product.
ADVERTISING TYPES
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ADVERTISING TYPES
Surrogate Advertising: The word surrogate means substitute. In this type
of advertisement one product is substituted for another example. Alcohol
advertisement is banned, but mineral water or apple juice or soda is being substituted
for advertisement.
Trade Advertising: It consists of two parts. They are
Retail advertising: This covers those items sold directly to the consumer by retail
shop. The retail advertising includes advertisements released by establishments that
sell services such as petrol pump, banks, apparels and house hold things etc. one
important aspect of retail advertising is known as cooperative advertising: Here the
advertising costs are shared between the retailer and manufacturer
Wholesale advertising: This advertising is unfortunately not well organized at home.
This is because, in whole sale advertising, the wholesalers are seldom keen on
advertising, either for themselves or for their dealers.
ADVERTISING TYPES
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ADVERTISING TYPES
Non-profit Advertising: Here idea selling done instead of product or service. This isgenerally aimed at fund rising ( Send us a cheque for Prime Ministers Flood ReliefFund), persuasion to act( get a physical check up for malaria), anti- smoke etc
Public Service Advertising: This advertisement is directed towards the socialwelfare of the nation or the community. Ex: LICs advertisement on drugaddiction gum care etc. In this type, the objective is to put across a messageintended to change attitude or behavior of the public. Advertisement on drinkingand driving and ads of Cry Card for donations to support poor children areexamples of Public Service Advertising.
ADVERTISING V/s MARKETING MIX
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ADVERTISING V/s MARKETING MIX
The elements of marketing mix are
Product
Price
Place
Promotion
Advertising is a communication tool in marketing; advertising helps to move the product orservice to the end user. The extent to which the advertisement is used as a communication tooldepends upon the nature of business.
Take an example of a physician. He wishes to improve his business. He may put a sign on thedoor or distribute a pamphlet in the area with regard to service offered. Due to professionalethics, doctors are being barred to use promotion. Therefore in this business, a little scope foradvertisement. The most important factor which influence the patients to go to the doctor is
Skill, Experience, Location, Charges levied, His reputation.
On the other hand where as a publisher launches his new periodical, advertising will play amajor role. From the above example, it is evident that advertising plays a different roles inmarketing various products/services. The role of advertising depends on How marketing mix isused to promote the product or service.
ADVERTISING V/s MARKETING MIX
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ADVERTISING V/s MARKETING MIX
Advertising and Product:
When a company develops a product, it s necessary to keep the bundle of benefit expected by thetarget customer segment. The classification of its product is important in defining themarketing mix. There are several ways of classifying products. Classification may be based on Who buys them or how tangible they are or the classification can be also based on therate of consumption
Offering product differentiation is the basic marketing strategy. Sometimes, the differences
between the products may be noticeable. When the difference can be noticed, they are called
perceptible differences. Ex: In cars and refrigerators, the shape, color, features are noticeable.
Advertisement and Place : The first question to be answered by the manufacturer of aproduct is Where do consumers buy? For distributing the product, two basic methods may beused 1) Direct 2) Indirect
Direct distribution is a process, wherein the company is in direct contact with the end user. Most
industrial product will follow this route.
Indirect distribution is a process, where, intermediaries like retailer, wholesaler, etc. industrial
manufacturers have their agents or distributors to supply components to OEM.
ADVERTISING V/s MARKETING MIX
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/
Advertising and Promotion:
Promotion relates to the communication between seller and buyer. Promotion mix constitutes
personal selling, advertising, sales promotion, public relations etc.
Personal Selling: The methods of personal selling are
Selling done by counter sales personnel
Selling done by company sales people, who gets in touch with the customer
Direct selling where advertising takes the entire burden of sales.
Advertising: Its paid form of nonpersonal selling, to create awareness among the customers
Public relations: Companies resort to public awareness exercise to supplement advertising. Publicrelation includes publicity such as inshore leaflets, press release, lobbying etc. it promotes the
company as dependable brand to investors. PR helps to fight negative publicity. PR influencesopinion formers such as journalists, where pre-paid mass media advertising back tracks
Sales Promotion: Includes free samples, Discounts, money off coupons exchange offers etc
ADVERTISING V/s MARKETING MIX
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ADVERTISING V/s MARKETING MIX
Advertising and Price:
Advertising can communicate the price of the product. If there is price reduction, it shouldbe communicated to motivate the consumers to buy the product/service. Mostadvertisements do not speak of price, but define the feature of the product. Price influencesthe advertising. Therefore it is important to know how prices determine a product. Factorssuch as competition, demand, cost of promotion, distribution has its bearing on price.Sometimes companies launch products, the price is kept higher to increase the short termprofits with good development of cost. As the product reaches the maturity stage, thecompany intends to get higher share of the market, thereby reducing the price. At each ofthese phases the advertising message will be different
Influences on Pricing strategy on Advertisement
Skimming Pricing
Penetration Pricing
Comparative Pricing: By offering tow things quoting the price ex: Audio & Video equip
Competitive Pricing: Show the price in big bold format: ex: Big Bazaar, Food world,
Promotional Pricing: Promotional drive could clear the old stock. During festival season
Prestige Pricing : Here supplier wants only those clients, who could pay higher price inexchange for quality and better services.
Advertising Appeals
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Advertising Appeals
The advertising appeal refers to the approach used to attract the attention of
consumers and/ or into influence their feelings toward the product, service or
cause. An advertising appeal can also be viewed as something that moves
people, speaks to their wants or needs and excites their interest.
Hundreds of different appeals can be used as the basis for advertising messages.
At the broadest level these approaches are generally broken into two categories:Informational/Rational appeals and Emotional appeals.
Informational/Rational appeal: This type of appeal focus on the consumers practical,functional, or utilitarian need for the product or service and emphasize features of aproduct or service and/or other benefits or reasons for owning or using a particular brand.
The content of these messages emphasizes facts, learning and the logicpersuasion. Rational based appeals tend to be informative, and advertisers using themgenerally attempt to convince consumers that their product or services has a particularattribute(s) or provides a specific benefit that satisfies their needs.
Ex: Digital TV ads comparison channels with prices in terms of quality,
Clinical ads, Surfexcell ads etc, Washing powder nirma,
Advertising Appeals
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Advertising Appeals
Emotional appeal: Emotional appeals relates to the consumers social and/orpsychological needs for purchasing a product or service. Many consumers motives for their
purchase decisions are emotional and their feelings about a brand can be more importantthan knowledge of its features or attributes.
Personal states of feelings
Safety
Affection
Fear
Love
Happiness
Excitement
Sentiment
Ex: Johnson baby ads, Athithi Devobhava (Tourism service), Parachute, Gems ads,
Advertising Appeals
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Advertising Appeals
Advertising and the Product Life Cycle
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Advertising and the Product Life Cycle
Informative advertisingBuild initial demand for a product.
Persuasive advertisingImprove the competitive status of aproduct.
Reminder-oriented advertisingMaintain awareness of the
importance and usefulness of a product.