Lecture Takeaways

Understand promotions as a element of

marketing and the rising importance of advertising
and promotion tools in a companys marketing
programme.
Appreciate the concept of IMC, its evolution and
significance in bringing together individual
promotion tools.
Realise how various communication tools work
together in a coordinated manner to communicate
effectively.
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Lecture 1

Marketing
Relationship Marketing
Marketing Mix
Promotion Communication
Why IMC?
Reasons for Growing Importance of IMC
Role of IMC in Branding
2

Marketing
American Marketing Association defines
Planning

Marketing
Execution

Conception
Pricing
Promotion
Distribution

Ideas
Goods
Services

In order to create Exchange that satisfy

individual and organisational objectives
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Marketing involves various activities

Inbound marketing activities
Market Research

Outbound marketing activities

Advertising and Promotion

Sales
Public and Media Relations
Customer service
Customer satisfaction
There is interdependence of these activities.
4

Relationship Marketing
Today most marketers are seeking more than just one
time exchange or transaction with customers.
Customers desire superior customer value

Quality product and services

Competitively priced
Convenience to purchase
Timely delivery
Excellent customer service
Personalised products and service
Mass Customisation Computers, Clothing, Cosmetics,
Jewelry.
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Relationship Marketing cont

It is often more cost effective to retain
customers than to acquire new one.
Lifetime Value of customers
Reducing customer defections by just 5
percent can increase future profit by as
much as 80 to 90 percent.
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Marketing Mix

Product
Price
Place
Promotion
Combine these four elements into a marketing
programme to facilitate the potential of exchange
with customers in the market place.
Marketer must be aware how each of these elements
can be combined to provide effective marketing
programme.
Eg:-failures Kelloggs cornflakes
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Marketing Communication
MC involves all activities concerned with
effectively communicating product information
to selected target audience.
All MC is done with a purpose.
The prime Purpose of communication is to
seek a Cognitive, Affective and Behavioural
response whatever the desired response may
be.
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The growth of advertising & promotions

(India)

10

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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Communication-Based Marketing Mo

Other Stakeholders
Employees
Investors
Financial Community
Government
Regulators

Corporate Level Message Sources

Administration Manufacturing/ Marketing Finance Human
Legal
Operations
Resources
Cross-Functional Brand Equity (IM) Team

Marketing Level Message Sources

Product
Mix

Price
Mix

Marketing
Distribution
Communication
Mix

Cross-Functional IMC Team

Marketing Communication Level Message Sources

Interactivity

Distributors
Customers Suppliers
Competition

Consumers
Local Community
Media
Interest Groups

Personal Adver- Sales

Direct
Public
Pack- Events
Sales tising Promotion Marketing Relations aging
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High control
Message

Low control
Message

Advertising
Sales-Promotion
Direct Marketing
Special Events

EmployeeBehaviour
Consumer WOM

Publicity
PR
Crisis Management

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Evolution of IMC
American Association of Advertising Agencies
defines IMC as
a concept of marketing communication
planning that recognises the added value of a
comprehensive plan that evaluates the strategic
roles of a variety of communication disciplinefor example general advertising, direct
response, sales promotion,and public relations
and combines these disciplines to provide
clarity, consistency and maximum impact.
14

Integrated communication for

Incredible India

15

IMC called by different names

New advertising
One-to-one marketing
Whole egg
Orchestration
360 branding
Total branding
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Evolution of IMC condt

Concept of IMC was first germinated in 1980
Communication originating from watertight
compartments overlapped, managers competed
internally for resources and the common goal of
the organisation was sidelined in the bid to
secure maximum resources.
Hence IMC was bornto look at the common
organisation goal
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Integrated Marketing
Communication Decoded

Revolutionary Approach
Comprehensive Plan
Globalization
Synergy effect
Cost minimization and Profit Maximization
Campaign
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Shift in the agencies too

Eg- Ogilvy & Mater (O&M) now offers 360
degree communication option to the clients

Ogilvy Activation for out-of-home communication

Ogilvy Interactive for online marketing
Ogilvy Live for events and promotions
Ogilvy PR for public relations
Ogilvy One for one-to-one marketing
Ogilvy Signscapes for retail design solutions.
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Reasons for growing importance of IMC

Decreasing impact of tradition advertising

Proliferation of new ways to reach consumers
Demand greater accountability
Growth in database marketing
Growth of international marketing
Emphasis on relationship marketing
Tighter control over communication
Changing compensation structure of agencies
Need for single brand custodian
Need for creating brand identity

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Branding and Brand equity

Brand-is a collection of images and ideas regarding a
productor company. More particularly it refers to the
concrete symbols such as brand name, logo, slogans,
signs, symbols and design schemes.
Brand recognition- is the result of awareness
regarding a brand in the marketplace and is created
by direct experiences with a product or through other
communications
Brand equity- is the power and value of a brand in the
marketplace. It is based on brand loyalty, brand
awareness, perceived quality, strong brand
associations, patents, trademarks etc.
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