MBA – IV 08030401 - Integrated Marketing Communication

CH 1 An Introduction to Integrated Marketing Communication (IMC)

 Concept of Integrated Marketing Communications (IMC)
 Process and Role of IMC in Marketing,
 Promotion Mix :
 Advertising (Classification of advertising, types, advertising appropriation, advertising
campaigns),
 Sales Promotion (Different types of Sales Promotion, relationship between Sales promotion
and advertising),
 Publicity (Types of Publicity, relationship between advertising and publicity),
 Personal Selling, Direct marketing and direct response methods,
 Basics of e-Marketing & Web Marketing.

Integrated Marketing Communications (IMC)

Integrated Marketing Communications (IMC) refers to a strategic approach that combines and
coordinates various marketing communication tools, channels, and messages to deliver a consistent
and unified brand message to the target audience. The goal of IMC is to ensure synergy across all
marketing efforts to create a cohesive and compelling impact on customers.
IMC integrates different communication strategies, such as advertising, public relations, sales
promotions, direct marketing, digital marketing, and personal selling, into a unified framework. By
aligning the content, design, and delivery of messages, IMC helps create a consistent brand identity
and ensures that the brand's voice is clear and recognizable across all touchpoints.

Key Components of IMC :

1. Consistency : All messages and materials must align with the brand's core values and voice.
2. Coordination : Various marketing tools and channels work in harmony to reinforce the message.
3. Synergy : The combined effect of coordinated efforts is greater than the sum of individual
campaigns.
4. Customer-Centric Approach : The communication strategy is tailored to meet the preferences
and behaviour of the target audience.
5. Feedback Mechanism : IMC leverages customer feedback to refine messaging and improve
effectiveness.

Example :
Amul (The Taste of India) uses an IMC approach to promote its products and maintain its position
as a leading dairy brand in India.
Implementation of IMC :
 Advertising : Amul's witty and timely cartoon ads in newspapers and digital platforms are a staple
of its branding. These ads address current events while subtly promoting Amul products.
 Social Media Campaigns : The brand uses Facebook, Instagram, and Twitter to share its iconic
topical ads and engage with younger audiences.
 Public Relations : Amul actively participates in events and CSR activities that promote dairy
farming and nutrition.

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 Sales Promotions : Offers and discounts are regularly provided in retail outlets, especially during
festive seasons, to boost sales.
 Point of Purchase : Consistent branding and packaging are visible across grocery stores,
supermarkets, and online platforms.
 Digital Marketing : Amul has developed its app and e-commerce partnerships to cater to tech-
savvy consumers and provide a seamless buying experience.

Impact : Amul's integrated communication ensures that its brand remains top-of-mind for consumers
while maintaining a consistent and unified message across all platforms, reinforcing trust and loyalty.
Conclusion : Integrated Marketing Communications is essential for building strong and coherent
brands in a competitive market like India. By effectively combining communication tools and
strategies, companies can deliver impactful messages that resonate with their target audience, ensuring
sustained growth and market relevance.

Process of Integrated Marketing Communications (IMC) : The IMC process involves

several steps that ensure the effective planning, execution, and evaluation of a cohesive communication
strategy.

1. Identify the Target Audience : Understand the demographics, psychographics, and behavior of
the audience. Ex. a luxury watch brand like Titan focuses on affluent urban professionals.
2. Set Communication Objectives : Define what the brand aims to achieve, such as increasing brand
awareness, driving sales, or building loyalty. Ex. Flipkart might aim to increase downloads of its
mobile app during the Big Billion Days sale.
3. Develop the Message : Create a consistent and compelling message that resonates with the
audience. Ex. Maggi emphasizes "2-minute noodles" to reinforce convenience.
4. Select Communication Tools and Channels : Decide on the mix of tools, such as advertising,
social media, public relations, or events, based on audience preferences. Ex. Zomato uses
humorous social media posts and targeted push notifications.
5. Budget Allocation : Allocate resources across different tools and channels based on their
effectiveness and reach. Ex. An e-commerce brand may invest more in digital advertising during
the festive season.
6. Implement the Campaign : Execute the strategy across selected platforms, ensuring all elements
are synchronized. Ex. Coca-Cola's "Share a Coke" campaign used TV ads, social media, and
personalized bottles to create buzz.
7. Evaluate and Optimize : Monitor the campaign’s performance using key performance indicators
(KPIs) such as sales growth, engagement, or brand recall. Adjust strategies as needed to maximize
impact.

Conclusion : The IMC process ensures that marketing communication is well-planned, aligned, and
impactful. By leveraging multiple tools and platforms, IMC plays a pivotal role in building strong
brands, engaging consumers, and achieving marketing objectives in the dynamic Indian market.

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Role of IMC in Marketing : IMC plays a crucial role in modern marketing by ensuring that
brands deliver a unified message, creating stronger connections with consumers.

1. Builds Brand Equity : IMC fosters a consistent brand image and identity across platforms.
Tata Tea’s “Jaago Re” campaign consistently emphasizes social awakening and responsible
citizenship, reinforcing Tata Tea’s commitment to societal change.
2. Enhances Customer Engagement : Engaging the audience across multiple touchpoints
ensures a deeper connection with the brand. Myntra uses influencer collaborations,
personalized email marketing, and app-exclusive discounts to keep customers engaged.
3. Improves Resource Efficiency : By integrating various tools, IMC reduces duplication and
maximizes the ROI of marketing efforts. Big Bazaar’s “Sabse Saste Din” aligns TV, print,
and social media promotions to optimize resources.
4. Drives Sales and Revenue : A well-coordinated IMC strategy encourages consumer action
and boosts conversions. Amazon India’s “Great Indian Festival” uses TV ads, digital
marketing, and in-app notifications to drive massive sales.
5. Ensures Message Consistency : A unified message reduces confusion and builds trust with
the audience. Dabur Honey consistently communicates its benefits of purity and health across
all channels.
6. Adapts to Consumer Behavior : IMC strategies can be tailored to the evolving needs and
preferences of the audience. Paytm adapts its communication to highlight convenience,
cashback offers, and secure transactions.

Example : Brand : Surf Excel

IMC Process :
 Audience: Parents concerned about children’s messy activities.
 Objective: Position Surf Excel as a stain remover that embraces the philosophy of "dirt is good."
 Message: Highlight emotional stories where stains are a byproduct of good deeds.
 Tools: TV ads, YouTube videos, social media campaigns, and influencer marketing.
 Implementation: Launch campaigns like "Daag Achhe Hain," with emotionally compelling ads
during high-viewership times.
 Evaluation: Measure increased sales during the campaign period and social media sentiment
analysis.

Role of IMC :
 Built a strong emotional connection with the audience.
 Enhanced brand recall through consistent messaging.
 Increased sales and market share in the detergent segment.

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Promotion Mix : The Promotion Mix refers to the combination of various marketing
communication tools and techniques that a business uses to promote its products or services to the
target audience. It is a key component of the marketing mix, designed to create awareness, generate
interest, and drive customer engagement and sales.

The elements of the promotion mix are:

1. Advertising : A paid, non-personal form of communication through mass media to inform or
persuade the audience.
Advertising uses mass media like TV, radio, newspapers, and digital platforms to reach a wide
audience. It is crucial for building brand awareness and influencing perceptions. Ex. Coca-Cola's
"Thanda Matlab Coca-Cola" campaign effectively created a strong association between Coca-
Cola and refreshment among Indian consumers.
2. Sales Promotion : Short-term incentives aimed at boosting sales or encouraging trials of a product
or service.
Offers like discounts, coupons, or free samples are used to incentivize purchases. Sales promotions
are often seasonal or event-specific. Ex. Reliance Jio's initial "free data and calls" offer attracted
millions of subscribers, disrupting the telecom market.
3. Public Relations (PR) : Activities designed to build and maintain a positive image and manage
the flow of information about a company.
PR involves managing a brand's image through media coverage, CSR activities, and crisis
communication. It helps in building trust and goodwill. Ex. Tata Group's sponsorship of
community welfare initiatives, such as rural development and education programs, enhances its
image as a socially responsible company.
4. Personal Selling : Face-to-face interaction between a sales representative and a potential customer
to influence purchase decisions.
This involves direct interaction between a salesperson and a customer to address specific needs
and close sales. It is highly effective for high-value or complex products. Ex. Insurance agents
from LIC (Life Insurance Corporation of India) play a critical role in selling policies by meeting
clients and explaining benefits.
5. Direct Marketing : Direct communication with potential customers through channels like email,
SMS, or telemarketing.
Companies reach out directly to potential customers using channels like email, SMS, or phone
calls. It allows for personalized communication. Ex. Flipkart sends personalized emails and app
notifications about discounts based on customer browsing history.
6. Digital and Social Media Marketing : Online platforms, including social media, search engines,
and websites, used for interactive and targeted communication.
Digital platforms allow brands to interact with their audience, build engagement, and promote
products in a cost-effective manner. Ex. Zomato's witty and engaging posts on Twitter and
Instagram have helped it build a strong connection with urban millennials.

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Example : Brand : Patanjali Ayurved

 Advertising : TV commercials emphasize the "Made in India" and natural health benefits of
Patanjali products.
 Sales Promotion : Discounts and combo offers during festivals to attract price-sensitive
consumers.
 Public Relations : Baba Ramdev, the brand ambassador, frequently appears in media to discuss
the benefits of Patanjali products, creating trust and credibility.
 Personal Selling : Patanjali’s sales staff at exclusive stores and local outlets educate customers
about product benefits.
 Direct Marketing : SMS campaigns and WhatsApp messages are used to inform customers about
new launches and discounts.
 Digital and Social Media Marketing : Social media campaigns highlight the brand’s values of
health, wellness, and affordability, appealing to the modern Indian consumer.

Conclusion : The promotion mix is a vital part of a company's marketing strategy. By effectively
combining its elements, businesses can enhance brand visibility, foster customer relationships, and
drive sales. In India, diverse consumer demographics and preferences require companies to tailor their
promotion mix for maximum impact.

MCQs
1. Which of the following is NOT a key component of Integrated Marketing Communications
(IMC)?
a) Consistency b) Coordination c) Autonomy d) Synergy
2. The primary goal of IMC is to:
a) Create a unified brand message across all channels b) Maximize sales immediately
c) Reduce marketing budget d) Increase competition between brands
3. What does "Synergy" in IMC mean?
a) The combined effect of marketing efforts is less than individual efforts
b) The combined effect of marketing efforts is greater than the sum of individual campaigns
c) It refers to using a single communication tool
d) It means creating disjointed marketing campaigns
4. Which of the following is an example of a customer-centric approach in IMC?
a) Using mass media for all campaigns
b) Tailoring messages based on consumer behavior and preferences
c) Ignoring consumer feedback
d) Standardizing messages for all customer segments
5. Which of the following best describes the first step in the IMC process?
a) Setting communication objectives b) Developing the message
c) Identifying the target audience d) Allocating the budget
6. Which communication tool is most effective for creating immediate action or trial of a
product?
a) Advertising b) Sales promotions c) Personal selling d) Public Relations
7. Which of the following is an example of a "push" strategy in IMC?
a) Television ads b) Salesperson offering discounts directly to customers
c) Social media engagement d) Content marketing

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8. In an IMC campaign, which factor should determine the allocation of resources across
communication channels?
a) The budget alone
b) The type of product
c) The effectiveness and reach of each tool/channel
d) The availability of new marketing technology
9. Which IMC component ensures the message is aligned with the brand’s core values and
voice?
a) Consistency b) Synergy c) Feedback mechanism d) Customer-centric approach
10. What is the role of Public Relations (PR) in IMC?
a) Generate immediate sales through promotions
b) Manage the brand’s image and communication with the public
c) Develop advertisements for television
d) Directly persuade customers to buy products
11. Which IMC tool is most appropriate for building long-term customer relationships through
direct communication?
a) Direct Marketing b) Sales Promotion c) Public Relations d) Personal Selling
12. Which of the following best exemplifies the integration of IMC tools?
a) A brand launching a TV ad but ignoring social media platforms
b) A brand using TV ads, social media, and email marketing to promote a product
c) A company sending only email newsletters without using other tools
d) A brand relying solely on in-store promotions for customer engagement
13. Which IMC tool is most effective for creating awareness about a new product?
a) Personal selling b) Public Relations c) Advertising d) Sales promotion
14. The feedback mechanism in IMC primarily helps in:
a) Increasing sales instantly
b) Refining messaging and improving effectiveness
c) Developing new marketing tools
d) Avoiding resource allocation mistakes
15. Which of the following campaigns is an example of effective IMC in India?
a) Reliance Jio’s "Free Data" offer b) Coca-Cola’s "Share a Coke" campaign
c) Flipkart’s "Big Billion Days" sale d) All of the above

Answer Key:
1. c) Autonomy
2. a) Create a unified brand message across all channels
3. b) The combined effect of marketing efforts is greater than the sum of individual campaigns
4. b) Tailoring messages based on consumer behavior and preferences
5. c) Identifying the target audience
6. b) Sales promotions
7. b) Salesperson offering discounts directly to customers
8. c) The effectiveness and reach of each tool/channel
9. a) Consistency
10. b) Manage the brand’s image and communication with the public
11. a) Direct Marketing
12. b) A brand using TV ads, social media, and email marketing to promote a product
13. c) Advertising
14. b) Refining messaging and improving effectiveness
15. d) All of the above

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Advertising : Advertising, a crucial element of marketing, can be classified based on various

criteria. This classification helps businesses strategically design campaigns to reach their intended
audience effectively. Below is a detailed explanation of advertising classifications with relevant
examples from the Indian context.

Classification Based on
B. Objectives
1. Informative Advertising : To educate the target audience about new products or services, their
features, and benefits. Ex. The launch of Tata Nano featured extensive advertising focused on its
affordability, mileage, and suitability for middle-class families in India.
2. Persuasive Advertising : To influence consumer attitudes and encourage them to prefer a
particular brand over competitors. Ex. Cadbury Dairy Milk's "Kuch Meetha Ho Jaye"
campaign encourages consumers to associate the brand with celebrations and happy moments.
3. Reminder Advertising : To keep the brand in the audience's memory and reinforce brand loyalty.
Ex. Amul's Topical ads consistently remind customers of its dairy products while addressing
current events humorously.
4. Comparative Advertising : To compare one brand directly or indirectly with competitors to
highlight its superiority. Ex. Horlicks vs. Complain ads, where both brands compared their
nutritional benefits for children.

C. Target Audience
1. Consumer Advertising : Directed toward individual buyers or end-users. Ex. Surf Excel's
"Daag Acche Hain" campaign appeals to parents by showcasing the brand's stain removal power
while celebrating children's playful activities.
2. Industrial Advertising : Targeted at industrial buyers who use products for production. Ex. Ads
by Tata Steel promoting industrial-grade steel products to manufacturing companies.
3. Trade Advertising : Aimed at wholesalers, retailers, and distributors to stock and sell products.
Ex. HUL runs promotional campaigns targeted at retail outlets to encourage them to stock its
products.
4. Government and Public Sector Advertising : Promotes public awareness or government
schemes. Ex. The "Beti Bachao, Beti Padhao" campaign to promote girl child education and
empowerment.

D. Media Used
1. Print Advertising : Includes newspapers, magazines, brochures, and leaflets. Ex. Amul often
advertises in leading newspapers using creative and witty visuals.
2. Broadcast Advertising : Includes television and radio. Ex. Vivo's sponsorship of IPL telecasts,
using TV ads to showcase its smartphone features.
3. Outdoor Advertising : Includes billboards, transit advertising, and posters. Ex. Netflix India
uses creative billboards to promote its web series and movies.

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4. Digital Advertising : Includes online platforms like social media, search engines, and websites.
Ex. Zomato frequently uses humorous posts on social media to engage audiences and promote its
services.
5. Mobile Advertising : Targets users via SMS, in-app ads, or push notifications. Ex. Flipkart and
Amazon send push notifications for their "Big Billion Days" and "Great Indian Sale."

E. Timing
1. Seasonal Advertising : Targeted for specific festivals, holidays, or seasons. Ex. Raymond's
Diwali campaigns promote gifting formal wear during the festive season.
2. Continuous Advertising : Used throughout the year, regardless of seasons or holidays. Ex.
Hindustan Unilever's Lifebuoy ads continuously promote hygiene and handwashing.

F. Geographic Scope
1. Local Advertising : Focused on specific cities or regions. Ex. Ads for local sweet shops or small-
scale retailers like Vishal Mega Mart.
2. National Advertising : Covers the entire country. Ex. Bharat Matrimony uses TV and online
ads across India to target potential customers nationwide.
3. International Advertising : Targets audiences in multiple countries. Ex. Infosys runs global
campaigns to showcase its IT solutions to international clients.

G. Function
1. Primary Demand Advertising : Focuses on creating demand for a product category rather than
a specific brand. Ex : ads promoting digital payments during the Digital India initiative.
2. Selective Demand Advertising : Focuses on creating demand for a specific brand. Ex. Patanjali
ads emphasize its Ayurvedic and swadeshi positioning to differentiate itself from competitors.

Types of Advertising
Advertising is a strategic communication tool used to promote products, services, or ideas. Based on
its purpose, audience, and medium, advertising can be classified into various types. Below is a detailed
explanation with relevant examples from the Indian context.

1. Product Advertising : Focuses on promoting a specific product or service by highlighting its

features and benefits. This type of advertising aims to create demand for a particular product in the
market. It can target either new or existing products. Ex. Maggi Noodles uses product advertising to
emphasize its quick cooking time and taste, appealing to busy households and children.

2. Brand Advertising : Aims to build a positive image and increase awareness of a brand. The focus
is on creating an emotional connection with consumers to encourage loyalty. Ex. Tata Tea's "Jaago
Re" campaign promotes the brand while advocating social change, such as voting awareness and
women empowerment.

3. Retail Advertising : Promotes products available in specific retail outlets or stores. Retailers use
this advertising to drive footfalls and sales by showcasing discounts, deals, and product availability.

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Ex. Big Bazaar's "Sabse Saste Din" campaign attracts customers with discounted prices during
special sale days.

4. Corporate Advertising : Focuses on improving the overall image of the organization rather than
specific products. This type highlights the values, achievements, and contributions of the company.
Ex. Reliance Industries' advertisements about their efforts in renewable energy projects and digital
inclusion improve their corporate reputation.

5. Public Service Advertising : Aims to educate or inform the public about social issues and promote
societal welfare. These ads are usually sponsored by government bodies, non-profits, or socially
conscious brands. Ex. The "Swachh Bharat Abhiyan" campaign promotes cleanliness and hygiene
across India, encouraging active participation from citizens.

6. Comparative Advertising : Directly or indirectly compares a product with competitors to highlight

its superiority. The focus is on creating a competitive advantage by addressing specific consumer
concerns. Ex. The Horlicks vs. Complain ads compared nutritional benefits to target health-conscious
parents.

7. Digital Advertising : Utilizes online platforms such as social media, search engines, and websites
for promotions. This modern type of advertising offers precise targeting and real-time feedback. Ex.
Zomato uses humorous and engaging digital ads on Instagram to attract users and promote its food
delivery services.

Advertising Appropriation
Definition : Advertising appropriation refers to the allocation of funds or budget set aside by an
organization for its advertising activities within a specific time frame. This budget is part of the
company’s marketing expenditure, aiming to achieve specific promotional objectives.

Advertising appropriation refers to allocating a specific budget for advertising activities to achieve
marketing objectives. It involves strategically planning and distributing resources based on factors
such as marketing goals, target audience, market competition, and product life cycle stage. Various
methods, like percentage of sales or competitive parity, guide budget allocation depending on the
organization's priorities and resources.
Companies may use various methods like:

1. Percentage of Sales Method : Allocating a fixed percentage of past or projected sales. This
method involves allocating a fixed percentage of the company's past or projected sales revenue
for advertising. It is simple to implement and ensures that advertising spend aligns with the
company's sales performance. However, it may not account for changing market dynamics or new
opportunities.
Ex. Amul maintains consistent advertising efforts through the percentage of sales method,
allocating its budget based on annual sales figures. This approach ensures steady funding for
creative billboard campaigns, which are moderately priced yet highly effective in maintaining
strong brand recall and visibility.

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2. Objective and Task Method : Setting the budget based on specific marketing objectives and the
cost of tasks required to achieve them. This approach involves setting specific advertising
objectives and determining the tasks required to achieve them. The budget is then calculated based
on the cost of these tasks. It is a more strategic and flexible method but requires detailed planning
and cost estimation.
Ex. Patanjali Ayurved adopts the objective and task method for its advertising, focusing on high-
impact promotions for its Ayurvedic and swadeshi products. For instance, when launching new
herbal skincare products, Patanjali calculates the required budget based on the cost of TV ads,
digital promotions, and influencer collaborations. This method ensures high visibility while
emphasizing the "swadeshi" ethos and Ayurvedic benefits, resonating strongly with Indian
audiences through its diverse campaigns.

3. Competitive Parity Method : Matching the advertising spend of competitors. This method
involves setting the advertising budget in line with what competitors are spending. It helps ensure
that the company remains competitive in the market but may ignore the company's unique
objectives and financial constraints.
Ex. Reliance Jio, during its launch, followed this method to match or surpass the advertising spend
of competitors like Airtel and Vodafone. This aggressive strategy helped Jio capture significant
market share quickly. During its launch, Reliance Jio adopted a massive competitive parity
strategy, outspending competitors like Airtel and Vodafone to dominate the telecom market with
introductory offers and aggressive advertising campaigns.

4. Affordable Method : Spending what the company can afford after other expenses. Under this
method, the company sets the advertising budget based on what it can afford after meeting other
expenses. While it is straightforward, it may result in underfunding if not aligned with marketing
objectives.
Ex. Local businesses and startups in India often adopt this method. For instance, a small-scale
sweet shop may allocate funds for festive-season ads on local radio or newspapers only after
covering its operational costs. Flipkart allocates significant budgets during festive sales like The
Big Billion Days, combining digital advertising with television and influencer promotions to target
urban and rural consumers.

Conclusion : Advertising appropriation is crucial for allocating budgets effectively to meet marketing goals.
Companies like Amul and Patanjali use methods like percentage of sales and objective-task for strategic
campaigns, while startups often rely on the affordable method. These approaches ensure resource efficiency
and impactful promotional outcomes based on market position and objectives.

An Advertising Campaign is a coordinated series of promotional activities that aim to achieve

specific marketing goals, such as increasing brand awareness, driving sales, or changing consumer
perceptions. These campaigns often involve multiple media channels, including TV, print, digital, and
outdoor advertising, and are designed around a central theme or message. The success of an advertising
campaign depends on clear objectives, creative execution, and effective media planning.

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Ex. Dabur's "Panchgavya" Campaign: Dabur launched a campaign promoting the traditional benefits
of Panchgavya, a product made from five key ingredients found in cow products, aimed at emphasizing
its health and wellness benefits. The campaign combined TV commercials, print media, and social
media platforms to target health-conscious consumers in both urban and rural areas. It featured
testimonials and scientific evidence, making it relatable to the masses and appealing to India's growing
interest in natural products.

Components of an Advertising Campaign : An advertising campaign involves several key

components that work together to achieve specific marketing objectives. These components ensure
that the campaign delivers its intended message to the right audience, using the most effective media
channels, and within the set budget.

1. Objective Setting : The foundation of any advertising campaign is its objective. Clear, measurable
goals help guide the campaign’s direction and its evaluation after completion. Ex. Objectives could
range from increasing brand awareness, boosting sales, or changing consumer perceptions. For
example, a campaign by Coca-Cola could aim to increase awareness of a new product or drive
consumption during a specific period, such as a holiday season.

SMART Objectives: These should be Specific, Measurable, Achievable, Relevant, and Time-bound.
A well-defined objective ensures that the campaign's success can be properly assessed.

2. Target Audience : Identifying the specific demographic or psychographic group the campaign
intends to reach is crucial. This involves understanding consumer behavior, preferences, and pain
points. Ex. Dove's Real Beauty campaign targets women of all ages and body types, aiming to
challenge traditional beauty standards. Similarly, Nike's "Just Do It" campaign primarily targets
young, active, sports-oriented individuals.

The target audience can be segmented based on age, gender, income, location, behavior, or
psychographics (lifestyle, values, etc.). For example, Amazon India targets tech-savvy consumers,
offering personalized campaigns based on browsing habits.

3. Message Creation : The core message communicates the campaign's value proposition and
resonates with the audience's needs or desires. It must align with the campaign's objectives and appeal
emotionally or rationally. Ex. Amul's "Taste of India" campaign uses humor and cultural references
to create a relatable and emotional connection with Indian consumers. On the other hand, Tata Tea’s
"Jaago Re" campaign uses a socially relevant message to encourage awareness about voting rights.

The tone can be emotional, humorous, serious, or inspirational, depending on the campaign's goals.
For example, Airtel’s "Har Ek Friend Zaroori Hota Hai" campaign uses a friendly and inclusive tone
to highlight the brand’s value of connection.

4. Media Selection : Choosing the right media channels is essential for reaching the target audience
effectively. Media selection involves a mix of traditional (TV, print, radio) and digital media (social
media, search engines, websites). Ex. Flipkart's campaigns often include TV commercials, social
media advertising, and email marketing to reach a wide audience. Coca-Cola uses a combination of
TV ads, billboards, and digital ads to target younger, urban consumers.

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Media selection also involves considering the timing, frequency, and reach of the ads. For example,
Tata Motors might use TV ads during prime time for broad national reach, while Big Bazaar may use
print ads for regional promotion.

5. Budgeting : A critical aspect of campaign planning, the budget determines the resources available
for the campaign and ensures that the campaign remains financially feasible. Budget allocation is often
based on the chosen media, objectives, and expected return on investment (ROI). Ex. For high-budget
campaigns like Amazon's Great Indian Festival, large sums are allocated to TV and digital media.
Smaller brands may allocate their budget to more cost-effective platforms like social media or
influencer marketing.
Common methods include the percentage of sales method, objective-task method, or affordable
method. For instance, Patanjali uses the objective-task method to set a budget based on specific goals
for a product launch.

6. Evaluation : Evaluation is the process of assessing the effectiveness of an advertising campaign. It

involves measuring key performance indicators (KPIs) such as sales, brand awareness, customer
engagement, and overall ROI. Ex. After a campaign, brands may use surveys, social media listening,
web analytics, or sales data to evaluate its impact. For example, Lays India uses social media
engagement metrics to assess the success of its ad campaigns and adjust future marketing strategies
accordingly.

Based on the evaluation, adjustments may be made to optimize future campaigns. For example, if a
TV campaign does not generate expected engagement, the budget might be shifted to more digital-
focused efforts.

Conclusion : The success of an advertising campaign depends on careful planning, clear objectives,
precise target audience identification, compelling messaging, appropriate media selection, and
rigorous evaluation. Indian brands like Amul, Nike, and Patanjali utilize these components effectively,
ensuring that their campaigns resonate with local consumers while achieving business goals. By
aligning all these elements, companies can drive significant results from their advertising efforts.

MCQs

1. Which of the following is an example of Product Advertising?

A) Tata Tea's "Jaago Re" campaign promoting social change
B) Maggi Noodles advertising its quick cooking time and taste
C) Reliance Industries' campaign highlighting renewable energy projects
D) Flipkart's campaign promoting The Big Billion Days sale

2. What is the primary focus of Brand Advertising?

A) To emphasize product features and benefits
B) To create an emotional connection with consumers and build brand loyalty
C) To inform the public about social issues
D) To showcase discounts and deals in retail stores

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3. Which advertising method involves allocating a fixed percentage of past or projected sales to
the advertising budget?
A) Objective and Task Method B) Competitive Parity Method
C) Percentage of Sales Method D) Affordable Method
4. How does the Objective and Task Method differ from the Percentage of Sales Method in
advertising appropriation?
A) The Objective and Task Method is based on setting specific goals and determining the costs of tasks
to achieve them, while the Percentage of Sales Method allocates a fixed percentage based on sales.
B) The Objective and Task Method relies on competitors' budgets, whereas the Percentage of Sales
Method does not.
C) The Objective and Task Method is more flexible than the Percentage of Sales Method.
D) The Objective and Task Method involves setting a budget based on affordability.
5. Which type of advertising is aimed at increasing brand awareness and creating a positive
image of a company?
A) Product Advertising B) Corporate Advertising
C) Retail Advertising D) Public Service Advertising
6. Which of the following is NOT a component of an advertising campaign?
A) Media Selection B) Objective Setting
C) Competitive Parity D) Evaluation
7. A company uses TV, print, and social media to promote a product. This is an example of?
A) Objective Setting B) Media Selection
C) Target Audience Identification D) Budgeting
8. Which method of advertising appropriation is most suitable for a company trying to match
its competitors' spending on advertising?
A) Objective and Task Method B) Competitive Parity Method
C) Percentage of Sales Method D) Affordable Method
9. Which advertising method is often used by local businesses that allocate funds for
advertising only after meeting their other expenses?
A) Competitive Parity Method B) Objective and Task Method
C) Percentage of Sales Method D) Affordable Method
10. What is the purpose of setting SMART objectives in an advertising campaign?
A) To create a budget that is flexible and adjustable
B) To ensure the objectives are clear, measurable, and achievable
C) To determine the media selection for the campaign
D) To assess the effectiveness of the media used in the campaign

Answers:
1. B) Maggi Noodles advertising its quick cooking time and taste
2. B) To create an emotional connection with consumers and build brand loyalty
3. C) Percentage of Sales Method
4. A) The Objective and Task Method is based on setting specific goals and determining the costs of
tasks to achieve them, while the Percentage of Sales Method allocates a fixed percentage based on
sales.
5. B) Corporate Advertising
6. C) Competitive Parity
7. B) Media Selection
8. B) Competitive Parity Method
9. D) Affordable Method
10. B) To ensure the objectives are clear, measurable, and achievable

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Sales Promotion : Sales promotion refers to a range of marketing activities aimed at boosting
short-term sales, stimulating immediate customer action, and encouraging potential buyers to make a
purchase. Unlike advertising, which focuses on long-term brand building, sales promotions are
designed to generate quick results by offering tangible incentives. These can include discounts, free
samples, contests, and other incentives that create a sense of urgency or added value to the consumer.

Types of Sales Promotion

1. Discounts and Price-off Promotions: These are the most common forms of sales promotion,
where companies reduce the price of a product for a limited time. Discounts can be offered in the
form of percentage reductions, flat amounts off, or bundling offers. Ex. Flipkart's Big Billion
Days Sale offers significant discounts on a wide range of products, from electronics to fashion,
attracting millions of consumers. These promotions are timed to coincide with major festive
seasons like Diwali, creating urgency and incentivizing buyers to act quickly.
2. Coupons and Vouchers: Coupons are vouchers that offer the customer a discount or a free gift
when making a purchase. These can be physical or digital and are often distributed through various
channels like newspapers, magazines, or online platforms. Ex. Domino’s Pizza in India frequently
offers digital coupons and vouchers that can be redeemed on their mobile app for discounts on
pizzas, especially during festivals or special events.
3. Free Samples : Free samples are used to allow potential customers to experience the product
before committing to a purchase. This is particularly effective in the FMCG sector. Ex. Dove often
distributes free samples of its body lotions or shampoos in malls or through online platforms. This
encourages consumers to try the product, leading to a higher likelihood of future purchase.
4. Contests and Sweepstakes : Brands may run contests or sweepstakes where customers participate
by purchasing a product and entering to win prizes. These promotions create excitement and drive
sales through the hope of winning a prize. Ex. Pepsi and Coca-Cola have frequently run
nationwide contests like “Pepsi’s ‘Win a million’ contest” or “Coca-Cola’s ‘Happiness
Campaign’” where customers could win prizes ranging from cash to cars by purchasing bottles
and entering the sweepstakes.
5. Loyalty Programs : These programs reward customers for their repeat business. Typically,
customers collect points or credits with each purchase, which they can redeem for discounts, gifts,
or exclusive offers. Ex. Big Bazaar’s loyalty program, Profit Club, offers points on every
purchase, which can be redeemed for discounts or free products. Such programs incentivize
customers to keep coming back, driving customer retention.
6. Trade Promotions : These are sales promotions targeted at retailers, wholesalers, or distributors
to encourage them to sell more of a company’s product. These can include trade allowances, bulk
discounts, or promotional materials to support the retailer in selling the product. Ex. Hindustan
Unilever often offers trade discounts and promotional support to retailers to boost the sale of their
products like Surf Excel, especially in rural areas, thereby encouraging distributors to stock up
and push sales.
7. Buy One Get One Free (BOGO) Offers : This type of promotion involves offering a free product
when a customer buys one at full price. It is highly attractive as customers feel they are getting a
better deal. Ex. Shoppers Stop often runs BOGO offers on clothing, where customers can buy

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one shirt and get another for free. Such promotions are common during festive sales, significantly
increasing foot traffic and customer engagement.

Conclusion : Sales promotion is a powerful tool that helps brands create short-term excitement and
boost sales. Whether through discounts, contests, or loyalty programs, these promotions provide
immediate benefits to consumers and drive business growth. In India, brands across industries, from
e-commerce giants like Flipkart to FMCG leaders like Dove, effectively leverage these techniques to
enhance their sales performance and strengthen customer relationships.

Relationship between Sales Promotion and Advertising

Sales promotion and advertising are both vital elements of a company's marketing strategy, but they
serve distinct purposes and have different characteristics. However, they are interconnected and work
together to achieve the common goal of increasing sales, building brand awareness, and enhancing
customer loyalty.

1. Purpose and Focus:

 Advertising primarily focuses on creating brand awareness, establishing brand identity, and
communicating long-term value propositions to a broad audience. It aims to inform, persuade, and
remind customers about the brand, its products, and its unique selling propositions (USP).
Advertising typically focuses on building brand loyalty over a prolonged period. Ex. Coca-Cola's
advertisements during festive seasons focus on building a positive image of the brand, often
emphasizing feelings of happiness and togetherness.
 Sales promotion, on the other hand, is a short-term strategy designed to incentivize immediate
action and boost sales in the short run. It often involves offering temporary discounts, coupons,
samples, or contests to persuade customers to make a purchase right away. Sales promotion aims
to stimulate immediate demand and increase the rate of consumer purchase. Ex. Flipkart’s “Big
Billion Days” sales event offers deep discounts and limited-time deals to encourage consumers to
purchase products immediately.

2. Duration
 Advertising typically involves long-term, ongoing campaigns that maintain a consistent message
and build brand awareness over time. Ex. TV and digital ads by brands like Apple or Nike focus
on consistent messaging about product innovation or brand values.
 Sales promotion is often short-term and event-based. It is used to trigger immediate consumer
action and is time-bound. Ex. A supermarket offering a "Buy One Get One Free" promotion for
a limited time.

3. Impact on Consumer Behavior

 Advertising affects consumer behavior through repeated exposure to the brand message. It shapes
perceptions and attitudes toward the brand, often relying on emotional appeal, brand storytelling,
or value-driven messaging. Ex. An advertisement by Dove portraying real beauty boosts consumer
empathy and loyalty toward the brand.

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 Sales promotion directly influences purchasing behavior by offering consumers immediate

rewards, making them more likely to buy due to the perceived benefit (such as discounts or free
items). Ex. A McDonald’s coupon for a discount on meals encourages immediate visits to the
store.

4. Complementary Roles
Sales promotion and advertising are often used together to achieve a balanced marketing strategy.
Advertising can create awareness and desire for a product, while sales promotions provide a
tangible reason for consumers to act immediately.Advertising creates the foundation for customer
engagement and interest, which is later "converted" into sales through well-timed promotions.

Ex. A television ad for a new smartphone (advertising) may be followed by a limited-time discount
offer or a special bundle (sales promotion) to drive immediate purchases.

5. Cost and Reach

 Advertising generally requires a higher budget and extensive resources to reach a wide audience
through channels like television, print media, or online ads. It is a long-term investment in brand
recognition. Ex. Apple’s advertisements for their new iPhone models are costly but target a broad
global audience.
 Sales promotion is more cost-effective and can target specific segments of the market. The
emphasis is on driving quick sales rather than long-term brand building. Ex. Local stores or online
platforms like Amazon often use sales promotions like discounts or limited-time offers that are
highly targeted and cost-effective.

6. Long-term vs Short-term Goals

 Advertising is aimed at achieving long-term brand equity by fostering loyalty, increasing
recognition, and ensuring long-lasting customer relationships.
 Sales promotion is intended to achieve short-term goals such as boosting sales, clearing inventory,
and creating urgency among consumers.

Conclusion : While advertising and sales promotion have distinct purposes, they are mutually
supportive. Advertising builds the foundation for long-term brand loyalty and awareness, while sales
promotions act as catalysts that drive immediate customer actions. Together, they form an integrated
marketing strategy that enhances both short-term sales and long-term brand positioning.

MCQs
1. Which of the following is the main focus of sales promotion?
a) Long-term brand awareness
b) Stimulating immediate consumer action
c) Emotional appeal to create brand loyalty
d) Building brand equity over time
2. What type of promotion involves offering a free product when a customer buys one at full
price?
a) Coupons b) Discounts c) Buy One Get One Free d) Contests and Sweepstakes

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3. Which of the following is an example of a sales promotion used to encourage consumers to

try a product?
a) Free Samples
b) Discounts
c) Loyalty Programs
d) Advertising
4. What is the primary difference between advertising and sales promotion?
a) Sales promotion is long-term, whereas advertising is short-term
b) Advertising builds brand awareness, while sales promotion drives immediate sales
c) Sales promotion involves the creation of a brand identity
d) Advertising targets specific market segments, while sales promotion does not
5. Which of the following sales promotions typically involves coupons distributed through
newspapers or digital platforms?
a) Contests b) Free Samples
c) Coupons and Vouchers d) Loyalty Programs
6. In the context of sales promotions, what is the main goal of loyalty programs?
a) To increase the price of products
b) To reward customers for repeat business
c) To clear out old inventory
d) To create a sense of urgency in the customer
7. Which of the following is an example of a trade promotion?
a) A free gift with purchase
b) Discounts for retailers or distributors
c) A "Buy One Get One Free" offer for consumers
d) A coupon for a discount on the next purchase
8. Why is it important for sales promotions to be time-bound?
a) To encourage immediate customer purchases
b) To build long-term customer relationships
c) To create consistent brand messaging
d) To maintain a steady stream of product awareness
9. What is the key characteristic of sales promotion compared to advertising?
a) Sales promotion targets long-term customer loyalty
b) Sales promotion is focused on immediate consumer action
c) Advertising uses discounts as its primary tool
d) Advertising is used for short-term goals
10. Which of the following is a short-term goal of sales promotion? a) Building brand equity
b) Increasing consumer engagement over a prolonged period
c) Boosting immediate sales
d) Creating emotional connections with consumers
11. How does advertising typically influence consumer behavior?
a) By offering immediate rewards to customers
b) By encouraging repeat purchases through rewards
c) By shaping perceptions and attitudes toward the brand
d) By offering discounts or gifts with purchases
12. Which of the following is an example of a marketing strategy that combines both sales
promotion and advertising?
a) A TV ad for a new phone followed by a limited-time discount
b) A loyalty program for repeat customers
c) A "Buy One Get One Free" offer without any advertisement
d) Offering coupons via email without television advertisements

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13. What role does advertising play in the relationship between sales promotion and
advertising?
a) Advertising immediately increases consumer purchases
b) Advertising creates long-term awareness and desire for the product
c) Advertising offers discounts or free gifts to customers
d) Advertising clears inventory and drives short-term sales
14. Which type of promotion creates excitement and drives sales through the hope of winning
a prize?
a) Discounts and Price-off Promotions
b) Free Samples
c) Contests and Sweepstakes
d) Loyalty Programs
15. Which of the following is a cost-effective characteristic of sales promotion?
a) It requires a large advertising budget
b) It targets specific market segments to drive quick sales
c) It builds long-term brand equity
d) It increases the cost of producing promotional materials

Answers :
1. b) Stimulating immediate consumer action
2. c) Buy One Get One Free (BOGO)
3. a) Free Samples
4. b) Advertising builds brand awareness, while sales promotion drives immediate sales
5. c) Coupons and Vouchers
6. b) To reward customers for repeat business
7. b) Discounts for retailers or distributors
8. a) To encourage immediate customer purchases
9. b) Sales promotion is focused on immediate consumer action
10. c) Boosting immediate sales
11. c) By shaping perceptions and attitudes toward the brand
12. a) A TV ad for a new phone followed by a limited-time discount
13. b) Advertising creates long-term awareness and desire for the product
14. c) Contests and Sweepstakes
15. b) It targets specific market segments to drive quick sales

Questions :
1. Analyze the role of Integrated Marketing Communications (IMC) in a company’s overall
marketing strategy.
2. Evaluate the impact of advertising appropriation on the success of an advertising campaign.
3. Compare and contrast the different types of sales promotions.
4. Assess the relationship between sales promotion and advertising in terms of their complementary
roles in driving immediate sales and building long-term brand loyalty.
5. Design an advertising campaign that integrates the concept of IMC.
6. Critically analyze the promotion mix and the role of advertising within it. How can different types
of advertising (e.g., broadcast, digital, and print) be effectively used in the context of a
comprehensive IMC strategy to reach a target audience?

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