ch1 introtoimc

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Advertising & Promotions

An IMC Perspective

An Introduction toIntegrated Marketing Communications


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Chapter takeaways

Learn about the various promotional tools Appreciate interrelation and integration of various

promotional tools

Comprehend the IMC model and programme


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Integrated communication forIncredibleIndia


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Result


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The IMC model

Integrated

Marketing

Product

Price

Place

Promotion

Marketing plan

(objectives &strategies)

Integrated

Marketing

Product

Price

Place

Promotion

IMC

Advertising

SalesPromotion

DirectMarketing

PublicRelations/Publicity

Unconventional tools

Interactivetools

Low controlmessages


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Marketing communication

Integrated MarketingCommunications is thecoordination and integrationof all marketingcommunication tools,avenues, and sources withina company into a seamlessprogram which maximizes theimpact on consumers and

other end-users at a minimalcost. The IMC includes allbusiness-to-business,channel, customer, externalcommunications, and internalcommunications.

IMC

Advertising

SalesPromotion

Direct

Marketing

PublicRelations/Publicity

Unconventional

tools

Interactive tools


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The growth of advertising & promotions(India)

Year Advertising expenditure(Rs. Crores)

2012 28,013 (annually growing at9% pa)source: http://www.exchange4media.com

2008 21,000

2007 17,690

2006 14,505

2005 11,915

2004 10,354

2003 9,329
http://www.exchange4media.com/http://www.exchange4media.com/


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Global Advertising Forecast

MAGNAGLOBAL, a division of IPG Mediabrands released an updatedglobal advertising forecast. The key findings from the report show:

2011 global growth is revised down to +4.7% (downgraded by -

0.5%), totaling $427 billion.2012 global growth is revised to +5.0% (downgraded by -1.5%),totaling $449 billion.Quadrennial events, combined with the scale and dynamism of theBRIC countries (Brazil, Russia, India, and China) will help sustain

global growth despite worsening economic outlook. They contribute to45% of the global growth in 2011.Internet will become the second biggest media category in 2011,reaching a 20% global market share in 2012.China will become the second largest advertising market in 2012,

outgrowing Japan.


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Beyond the BRICs: the next wave of emerging admarkets

Adspend growth (2014 v 2011)

US$ mi l l ion, current p r ices. Currency conversion at 2010 average rates.Source: ZenithOptimedia

Estimated Adspendgrowth US$ million

(2014)1 China 16,4392 Russia 4,4183 Indonesia 3,7684 Brazil 2,9725 South Africa 2,050

6 Argentina 1,8127 India 1,5718 Turkey 1,4359 Mexico 1,09210 South Korea 1,016


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IMCModel


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Develop an IMC MixPush and Pull Strategies

Producer

Retailers andWholesalers

Consumers

PUSH strategy

Retailers andWholesalers

Consumers

PULL strategy


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Advertising

Any paid form of non-personal presentationand promotion of ideas

or products by anidentified sponsor

Objectives

Inform Persuade Remind Reinforce


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What is Advertising?

Three criteria have to be metfor a communication to be

classified as advertising: The communication must be

paid for.

The communication must be

delivered through mass media. The communication must be

an attempt to persuade.


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Role of Advertising in the PromotionMix

1. Information and persuasion

2. Introduction of new brandsextensions3. Building brand loyalty/brand equity

4. Creating an image/meaning

5. Building brand loyalty in the tradechannel


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Mercedes SL What does it bring tomind?

http://www.youtube.com/watch?v=ZDNWFlhrWo4
http://www.youtube.com/watch?v=ZDNWFlhrWo4http://localhost/var/www/apps/conversion/tmp/scratch_5/Mercedes-Benz%20SL%20History%20television%20commercial.flvhttp://www.youtube.com/watch?v=ZDNWFlhrWo4


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Advertising

Strengths

Informs,

persuades,reminds,

reinforces

Builds brand

equity

Can reachlarge

audiences

Weaknesses

Expensive

Cluttered


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Kinds of Advertising

Primary demand stimulation

Selective demand stimulation

Direct response advertising

Delayed response advertising

Corporate advertising


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Quick Q!

Ramroti Ltd. has come up with a first-of-its-kindportable device that can make up to 500 rotis at atime. Which of the following types of advertising is

most important to sell the product?a. Trade advertisingb. B2B advertising

c. Primary-demand advertising

d. Selective-demand advertisinge. Brand-building advertising


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Nimbooz 2009 From Pepsico

Brand HistoryNimbooz was launched in India on the 28th of February 2009.

Indias first nationally available packaged Nimbu Pani.

Brand AdvantageThe brand delivers very strongly on certain expectations. These are:Locally Relevant TasteNimbooz has capitalized on the existing familiarity with and high consumption of

home-made nimbu pani. It has remained true to its authentic Indian Identity byusing the traditional Matka (Earthen Pot) and Squeezer in the manufacturingprocess.Convenience and Great ValueThe product is available in three convenient formats, 350ml PET, 200ml RGB and200ml Tetra at the remarkable price points of Rs15, Rs 10 and Rs 10 respectively.

AccessibilityNimbooz is Indias first nationally available packaged Nimbu Pani.HygienicIt is just like home-made nimbu pani. You can enjoy its natural and deliciouslemony refreshment anywhere you go.QUICK BRAND FACTS

It was launched in India in 2009.


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Nimbooz by 7UP is an authentic drink thats made with real lemon

juice squeezed from the best of lemons.

It has No Fizz & no added Artificial Flavours.

It is tasty and 100% hygienic and is available in trendy and

convenient packs, so that you can enjoy natural delicious, lemony

refreshment anytime, anywhere

Nimbooz by 7UP.

Refreshing Nimbu pani with Real lemon Juice.


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Insight

Our culture is rich and deep rooted.No matter how much we migrate to a modern lifestyle, its

only when we enjoy truly familiar & authentic experiences(albeit in a contemporary way) that we can relish being our

true selves.

Brand Idea

Enjoy Being MyAsli Self

Brand Role

The ASLI Indian Refresher


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Nimbooz creative brief

Get busy Indian men and women

Who have adopted a modern lifestyle but still love their(Indian) tradition

To try Nimbooz, the real nimbu paani with real lemon juice

By telling them Nimbooz is the cool way to enjoy atraditional favourite


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Nimbooz Launch Objective

The objective of the promotion was to communicatethe launch of the brand Nimbooz with the proposition

Ekdum Asli Indian (Absolutely Real Indian).

which is a refreshing Nimbu Paani (Lemonade) with

Asli (Real) Lemon Juice


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Launch Package

Launched in Delhi, U.P., Haryana, Punjab, Maharashtra and Gujrat on18th March 08.

Launched in the above cities with TV, Radio, OOH, Press and BTL.

Association with Kings XI Punjab cricket team.


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Total Work

Nimbooz

Radio

OOH

Press ads

T.V

Billboards

BusShelters

MobileVan

Innovations

Hindustan Times

Hindi HindustanAmar Ujala Punjab Kesari Dainik Bhaskar

Big FM

Radio MirchiRed FM

MyFM

15 different channelIncluding IPL (setmax)


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Press Ads

Teaser Launch


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Invite and give away sent to the Opinion

leader/Bottlers/Media on the occasion of the launch

Invite and Give away


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INVITE/ GIVE AWAY


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Retail Package

POS was done to create impact across all themediums and drive consumption

Poster


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Poster Range look To highlight all three packs

Banner Gate Flange

Streamer


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The brands proposition ofEkdum Asli Indian (Absolutely Real Indian)was brought alive on outdoors in some very interesting ways.

Here are some examples.


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Jute Bag InstallationLocation: Mumbai


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Day 3

3 days to go for the real thing

Day 2

2 days to go for the real thing

Day 1

1 day to go for the real thing

Launch Day


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Giant Squeezer BottleInstallation and

Outdoor Mechanized Moving Squeezer

Location: Delhi, UP, Punjab, Haryana, Jaipur

Outdoor Mechanized Moving


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Teaser

Reveal

Outdoor Mechanized Moving

Squeezer


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IPL Indian Premier League

Our association with Kings XI Punjab cricket team

For 2009, Nimbooz was a part sponsor for Kings XI Punjab as Punjab isone of the key markets of Nimbooz .Therefore, the objective was toencourage general public into sampling the product and make thissponsorship regionally pertinent. This offered people from all over

Punjab an opportunity to dance with the Kings XI Punjab in South Africa.


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Outdoor Communication

Translation Drink Nimbooz and dance with Kings XI Punjab in South Africa


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Kings XI Tableau

Mechanics of the Promo:The Tableau was made to go around all the major

cities in Punjab in the span of 7 days. The participants wereexpected to come and give dance auditions at the tableau,

where winners were selected on the basis of theirperformance and were given an opportunity to dance with

Kings XI Punjab team in South Africa.


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Independence day CampaignMedia: Radio and Outdoor


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Nimbooz celebrated Independence Day in

Asli Indian style using Kite as a device.On that day, 200,000 kites weredistributed in Delhi and NCR


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Nimbooz TV Ad
http://localhost/var/www/apps/conversion/tmp/scratch_5/Glamour%20Calling%20Work%20Profile%20-%20Nimbooz%20Wedding.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Glamour%20Calling%20Work%20Profile%20-%20Nimbooz%20Wedding.flv


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High and Low Control Messages


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Quick Q!

Which of the following tools ofcommunication is likely to create thehighest credibility among consumers?

a. Advertisingb. WOM Publicity

c. Sales promotion

d. Packaginge. Personal selling


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Cadburys Dairy Milk Shubh


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Cadbury s Dairy Milk ShubhAarambh (Consume Instead of

Traditional Sweets)

Cadburyscommercials

FM Radio talkshows where

peopleinteracted

Hoardings atCST

FacebookMid Days

New Years

Ad with aChocolateattachedEncourage people

to consume CadburyMilk Chocolate

Increase Perceived Value


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Shubh Aarambh
http://localhost/var/www/apps/conversion/tmp/scratch_5/Cadbury%20Dairy%20Milk%20-%20Shubh%20Aarambh%20-%20Hostel.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Cadbury%20Dairy%20Milk%20-%20Shubh%20Aarambh%20-%20Hostel.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Cadbury%20Dairy%20Milk%20-%20Shubh%20Aarambh%20-%20Hostel.flvhttp://localhost/var/www/apps/conversion/tmp/scratch_5/Cadbury%20Dairy%20Milk%20-%20Shubh%20Aarambh%20-%20Hostel.flv


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Why IMC?

Decreasing impactof advtg

New ways toreach consumers

Demand for

greateraccountability

Growth ofdatabase mktg

Growth ofinternational mktg

Emphasis on

relationship mktg

Tighter controlover

communication

Changingcompensation

structure ofagencies

Need for a singlebrand custodian

Need for brandidentity


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Cadbury Worm Crisis in Oct 2003


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Crisis

Managementand

Communicationthrough an IMC

Plan


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Sales promotion

Increasesvalue

Decreasesprice

Increasesvalue

Decreasesprice

OR OR AND

Changes the price-value relationship of a product


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Tradesales

promotionAllowances

Salescontests

Price dealsTradeshows

Trainingprogrammes

Cooperativeadvertising

Sales promotion tools

Consumersales

promotion

Pricediscounts

Coupons

Sampling

Rebates Contests

Sweepstakes

Loyalty points

Point-of-purchase

B l i l ti


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Balancing sales promotion:How much is too much?

Strengths

Immediate results

Direct impact on sales

Measurable

Clears extra inventory

Fights competitive promotions

Gets trade support

Less expensive than advertising

Weaknesses

Short-term results

Makes consumers deal prone

May erode brand equity & loyalty

Cluttered


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Direct marketing

One-to-one approach thatuses advertising media toproduce an inquiry, atransaction and some

other immediateresponse

No intermediary between

manufacturer & customer

Requires a database

Direct mail

Direct response TV/radio

Mail-order catalogues

Internet

Telemarketing

Tools


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Direct marketing

Strengths

Highly targeted

Measurable

Personalization & customizationpossible

Two-way communication

Relationship building

Weaknesses

Expensive

Not suitable for large audiences


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Publicity

Non-personalcommunication bythird-party sources

regarding anorganizations products

Tools

Press releases

Press conferences

Special events

Opinion polls

Interviews

Contests

Weblog writeups


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Public relations

Positively influencingpublic opinion to buildgoodwill, and earn

appreciation andacceptance

May result in publicity

Tools

Publicity tools

Community affairs

Events andconventions

Corporate advertising

Lobbying


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The publics of PR

PR

Media

Community

Government

Shareholders

Customers

Employees


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Internet as a


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Internet as acommunication tool

Strengths

Direct, interactive

Low in cost

Personalized

Targeted

Up-to-date

Less intrusive

Weaknesses

Smaller audiences

Difficult for non-savvy audiences


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Axe creates a sensation!


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Personal selling

Personal presentation by arepresentative of anorganization with thepurpose of influencing

consumer buying decision,making a sale, or buildinglong-term relationships

Strengths Targeted, flexible,

interactive, measurable,offers immediatefeedback, ideal for high-value & high-deliberationproducts & nicheaudiences

Weaknesses Expensive, not suitable

for large audiences


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Unconventional media

NovelMedia

Customerservice

Packaging

Events,Trade shows Sponsorships

POP

Documents

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