Introduction to Advertising

What is marketing
communication
Marketing communication refers to the
means adopted by companies to convey
messages about the products and brands
they sell, directly or indirectly to the
customers with the intention to persuade
them to buy
What is integrated marketing
communication? (IMC)
During the 1980’s companies began taking
a broader perspective of marketing
communication and felt the need for a
more strategic integration of their
promotonal tools
IMC involves coordinating the various
promotional elements and other marketing
activities that communication with the
A concept of marketing communication planning that
customer.
recognises the added value of a comprehensive plan that
IMC isthe
evaluates the synergy
strategic roleamong promotional
of communication tools
disciplines –
forand ensures
example generalaadvertising,
strategicdirect
uniform voice
response, being
sales
promotions and PR- and combines all these disciplines to
communicated to the customer
proivide clarity, consistency and maximum communication
impact
Reason for growth of IMC
A shift of marketing expenditures from
tradition media advertising to other forms
of promotion as traditional media has
become too expensive and is not cost
effective. Consumers are less response to
traditional media and tend to fast forward
through advertisement.
Rapid growth of the internet and social
media is changing the way consumers and
companies interact with each other. And
huge number of companies are realizing
the benefit of using social media for
promotion
IMC (Integrated Marketing
communication) Tools
Advertising
Direct Marketing
Interactive/Internet Marketing
Sales promotion
Public Relations
Personal Selling
IMC Tools - ADvertising
Any paid form of non personal communication about an
organization, product, service or idea by an identified
source
 Paid reflects the fact that the space or time for an ad needs to be
bought
 Non personal means that advertising involves mass media that can
transmit message to large groups of individuals. Non personal means
no opportunity for immediate feedback
Most widely discussed tool of promotion
Ads still reach out to a large base of customers
Huge tool for building company or brand equity
Companies try to reach potential and current customers
in order to build awareness, generate leads, reassure
customers about the purchase they made as well as
create a favorable image of the company
IMC Tool – direct marketing
Organizations communicate directly with
the customers to generate a response
and/or a transaction
Direct marketing is more than sending
direct mail involves daabase management,
direct selling, telemarketing and direct
repsonse ads through the internet and
various broadcase & print media
Rapid growth of the internet is fueling the
growth of direct marketing
IMC Tool – Interactive/internet
marketing
Interactive media allow for a black and
forth flow of communication hereby users
can participate in and modify the form and
content of the information in real time
Web coupons, promotions, customised
offers, real time offers
IMC Tools – Sales Promotions
Defined as marketing activities that provide
extra value orn ncentives to either the
sales force, the distribution channels or the
ultimate consumer
Consumer oriented sales promotion –
targeted at the ultimate consumer of the
product/service inluding couponing,
sampling, premiums, rebates, contests
Trade oriented sales promotion – targeted
at marketing intemediaries- discounts,
price deals, contests, trade shows
IMC – Public Relations
Refers to non personal communication
regarding an organization, product – not
directly paid for or run under idenified
sponsorship.
Comes in the form of news, editorial,
announcement
Like advertisement – directed at mass
media.
Adds more credibility
IMC – personal selling
Form of person to person communication –
in which a seller attempts to assist
prospective buyers to make a decision
Involves more immediate and precise
feedback
IMC Process
Marketing Strategy and
analysis
Marketing Plan evolves from an
organization’s overall strategy and this
serves as a plan or a guide for marketing
programs and policies
Opportunity Analysis – areas where there
are favourable demand trends where
companies believe that customer needs
and opportunities are not being satisfied
What market opportunities can you think of
in today’s world?
Competitive Analysis – An important
aspect of marketing strategy is the search
for a “competitive advantage”
Since marketers are competing for the
discretionary income of consumers, so they
must understand the various ways potential
customers chose to spend their money
Ways to achieve competitive advantage –
quality product that command a price, great
customer service, lowest production costs,
lower distribution costs, through advertising
that creates and maintains product
differentiation and brand equity
Target Market Selection
Company selects one or 2 target markets.
This becomes the focus of the firms
marketing efforts and goals and objectives
are set according to where the company
wants to be and what it hopes to
accomplish in this market.
Target Marketing process
• Because few if any products can satisfy the
needs of all onsumers – marketers develop
different marketing strategies to satisfy
different consumer needs.

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 Identifying markets
Marketer identifies the specific needs of
groups of people, select one or more
segments as a target and develop marketing
plans to eache
This approach has found increased
applicability in marketing for a number of
reasons including changes in the market –
that is consumers are becoming more diverse
in their needs, attitudes and lifestyles, and
the fact that marketing have found
advantages in the process of segmentation
Segmentation
Dividing the market into distinct groups
that have common needs
Is the target market substantial enough to
support individualized strategies and are
they accessible
Bases for Segmentation
Geographic Segmentation
Geographic Segmentation- markets are
divided into different geographic units
usually on account of differnet buying
habits depending on whethere they reside
Regional difference exist in food, drinks,
attitudes etc

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Demographic segmentation
Demographic Segmentation – dividing the market on demographic
variables such as age, sex, family size and social class
As of 2016, 51.8% of Indians are below 35 years old
150 million indians are over the age of 60
With life expectancy rising, today’s seniors are healthier and fitter
than their parents and grandparents at the same age. They say
60 is the new 40!
This new breed of silvers forms India’s first batch of independent
seniors who want customized products, services and experiences.
Most of the seniors who haven’t touched a computer for almost
all of their working life, now are happily embracing the
advancement and change.
There are more than two million active senior citizens on
facebook, as it helps reconnect old work/college friends and
extended family.
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Psychographic Segmentation
Dividing the market on the basis of
personality or lifestyle
Lifestyle is based on an analysis of
activities, interests and opinions of
consumers
This has also become popular with the
advent of values and lifestyle (VALS
programs) – Survivors, Sustainers,
Belongers, Emulators, Achievers, I AM ME,
Experimentals
VALS
Survivors –
consumers have
low resources
hence their lifestyle
is not governed by
any of the basic
motivations – low
on resources and
hence only the ends
are importers.
Marketers must
focus here on price
sensitivity and then
on trust and loyalty
Belongers– People with concrete belief,
low on resources and prefers products at
reasonable priced.
Primary motivation is ideals – traditional
and rigid.
Ex: lalitaji :
https://www.youtube.com/watch?v=ALxiX
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Behavioristic/User Status
Segmentation
Dividing customers on their usage, loyalty
or buying response in the past
Product usage, degreee of use, brand
loyalty couples with
demographic/psychographic criteria to
develop criteria to develop profiles of
market segments
Amazon prime, Zomato gold etc
Benefit Segmentation
Consumers are generally trying to satisfy
specific needs/and or wants.
 Segmentation Process – Chocolate market -

 Market for
chocolate can
be segmented
by Purchase
occasion and O
benefit c
sought. c
a
 Four major s
segments i
emerge from o
this bivariate n
segmentation
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 Clustering Benefit
tool*
Process of Segmentation
The segmentation process develops over
time and is an integral part of situation
analysis
It is in this stage that marketers try to
figure out as much as they can about the
market
What needs are not being fulfilled
What benefits are being sougth
What makes people different from others
So for example – if a market is segmented
basis benefits sought – further analysis is
done to unedrstand demographics, etc of
the consumer.
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Selecting a target market
Once segmentation is done – companies
decide how many segments toenter and
which segments show most potential
Determining how many segments to
focus on
Undifferentiated marketing – ignoring
segment differences and offering just one
product or service to the entire market
Differentiated Marketing – developing
separate marketing strategies for all
segments
Concetrated marketing – choosing a
Positioning the product
Positioning is the art and science of fitting
the product or service to one or more
segments of the braod market in such a
way that they are meaningfully apart from
competition
What do you think of when I say big bazaar,
Nike, Mcd, dominos, Surf Excel, mountain
dew
Approaches to positioning – focus on
consumer or competition,
Developing a positioning
strategy
Positioning by product attritbues and
benefits
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Positioning by Price/Quality
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Positioning by use/application
Position for a specific use :
 https://www.youtube.com/watch?v=i6dEI6D_rcI
 https://www.youtube.com/watch?v=rf0X0ycQz3I
 https://www.youtube.com/watch?v=oapzWU3ttqg

Position by Competitor

Repositioning
https://www.youtube.com/watch?v=n6GwfzdTt
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Developing the marketing planning
program
The development of the market strategy
and selection of a target market tell the
marketing department which customers to
focus on and what needs to attempt to
satisfy
The next step in the marketing process
involves combining the various elements of
the marketing mix into a cohensive
marketing program

The next step is to examine how product,

price, and distribution channels interact
with the promotional process
Product decisions
A product is a bundle of benefits/values
that satisfies the need of the customer –
needs may be functional, or may include
social or psychological benefits
Product symbolism is what a product or
a brand means to a customer and what
they experience while purchasing or using
it
For many products strong symbolic – social
and psychological meaning may be more
important than functional uses.
Product decisions include
Product planning involves decisions not just about the
product but things like the design, quality, services,
warranties, brand and packaging
Branding : decision is about building and
maintaining a favourable identity and image. Brand
identity consists of the combination of name, logo,
symbols, design and packaging
Build and maintain brand awareness and interest
Develop and enhance “attitudes” towards the consumer
Build and foster relationship between the consumer
Brand Equity – intangible asset of the company as a
result of favorable image, differentiation and
customer attachment
Product decisions
Packaging – Packaging has become
extremely important
Packaging is the first exposure of the
customer to the product
Studies show that 2/3 of all purchases in
supermarkets are unplanned
Packaging helps attract attention across
various products
Design factors such as size, shape, colour,
lettering all contribute to the appeal of
packaging. packaging helps create a brand
identity
Price Decisions
The price variable refers to what the consumer
must give up to purchase a product or service.
Cost of the product includes noect
it just the money but the time, mental activity and
the behavioural
From an IMC perspective – price must be
consistent with the perceptions of the product
Pricing and advertising go together. Studies show
that high relative ad expenditures should
accompany premium prices. Also exposure to
TV ads reduces consumer tendencies to
react to price changes
Distribution Channel
Decisions
Marketing channels are a set of
interdependent organiations involved in the
process of making a product or service
available for use or consumption
Blurring of the lines between
communication and distribution channels
and between different distribution channels
Developing Promotional Strategies:
Push or Pull
Advertising and other forms of promotion
are designed towards end consumers or
business customers
Promotional Push Strategy : Company
can have a program to motivate channel
partners.Programs designed to persuade
the trade to stock mechandise, promote a
manufactures products
Promotional Pull Strategy : Spending money
on advertising and sales promotions
directed towards the end consumer. Create
demand amongst consumers and
encourage them to request for the product