Advertising in An Org

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An Introduction to Advertising

Kruti Shah
PGPCME, MICA
Takeaways
• Understand marketing and marketing
communication
• Learn about the various promotional tools
• Understand IMC, its evolution and importance
• Appreciate interrelation and integration of various
promotional tools
• Comprehend the IMC model and programme
Marketing
• “The process of planning
and executing the
conception, pricing,
promotion, and
distribution of ideas,
goods and services to
create exchanges that
satisfy individual and
organizational objectives.”

- American Marketing Association


Marketing communication
• Purpose: Seek a
cognitive, affective
or behavioural
response from the
target audience

• Marketing
communication mix
Integrated marketing communication
Advertising
• Any paid form of non-
personal presentation
and promotion of ideas
or products by an
identified sponsor

• Objectives
– Inform
– Persuade
– Remind
– Reinforce
Strengths & weaknesses
Advertising types

Selective-
Brand-building Public service
demand

Tactical Corporate B2B


-Direct response

National Advocacy Trade

Retail Primary-demand …
Quick Q!
Ramroti Ltd. has come up with a first-of-its-kind
portable device that can make up to 500 rotis at a
time. Which of the following types of advertising is
most important to sell the product?
a. Trade advertising
b. B2B advertising
c. Primary-demand advertising
d. Selective-demand advertising
e. Brand-building advertising
The growth of advertising & promotions
(India)

Year Advertising % Growth over


expenditure last year
(Rs. Crores)
2008 21,000 20.0

2007 17,690 22.0

2006 14,505 21.7

2005 11,915 15.1

2004 10,354 10.9

2003 9,329
The growth of advertising & promotions
(Worldwide)
Sales promotion

Changes the price-value relationship of a product

Increases Increases
value value

OR OR AND

Decreases Decreases
price price
Reasons for increase in SP
• Growing clout of retailers
• Declining brand loyalty
• Brand proliferation
• Fragmentation of the consumer market
• Short-term focus
• Increased accountability
• Competition
• Clutter
Sales promotion tools
Quick Q!
• A soap brand is anticipating the launch of a
new soap by a strong competitor. How can it
use sales promotion to defend its current
customers?
Quick Q!
• A bank wants to build a database of men in
the 30-40 age-group to promote an
education loan for children. Can sales
promotion come to its aid for building the db?
The db would be used for sending direct
mailers.
Balancing sales promotion:
How much is too much?
Direct marketing
Tools
• One-to-one approach that
uses advertising media to Direct mail
produce an inquiry, a
transaction and some
other immediate Direct response TV/radio
response
Mail-order catalogues
• No intermediary between
manufacturer & customer
Internet
• Requires a database
Telemarketing…
Direct marketing
Publicity
• Non-personal Tools
communication by • Press releases
third-party sources • Press conferences
• Special events
regarding an
• Opinion polls
organization’s products
• Interviews
• Contests
• Weblog writeups…
Public relations
• Positively influencing Tools
public opinion to build • Publicity tools
goodwill, and earn • Community affairs
appreciation and
• Events and
acceptance
conventions
• May result in publicity
• Corporate advertising
• Lobbying…
The publics of PR
Publicity/PR
Internet as a
communication tool
Internet tools

Websites

Emails

Blogs

Discussion forums

Online games…
Social Media creates a sensation!
Personal selling
• Personal presentation by a
representative of an Strengths
organization with the • Targeted, flexible,
purpose of influencing interactive, measurable,
consumer buying decision, offers immediate
making a sale, or building feedback, ideal for high-
value & high-deliberation
long-term relationships products & niche
audiences

Weaknesses
• Expensive, not suitable
for large audiences
Unconventional media

Packaging
Customer
POP
service
Novel
Events, Media Advertising
Trade shows specialties

Sponsorships
RmKV 50,000 Colour Campaign

http://www.youtube.com/watch?v=vTcNNk-AYIA
Quick Q!
Which of the following tools of
communication is likely to create the
highest credibility among consumers?
a. Advertising
b. Publicity
c. Sales promotion
d. Packaging
e. Personal selling
Integrated marketing communication
(IMC)

• Various promotional tools provide consistent


messages to target audiences for clarity,
consistency & impact

• One voice, one message, one strategy


Corporate objectives & IMC objectives &
strategies strategies

Marketing objectives
& strategies

The IMC planning process

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