UNIT 1
Introduction to advertisement
Q1) Explain features of IMC? 5 marks
A1)
Concept
The Integrated Marketing Communication seeks to have all promotional and marketing activities of an organization together, project a consistent and unified image of the organization to the target market. It focuses on a common goal and positioning through centralized messaging function.
It sends all customers a consistent message about the company and its brands. Thus it enhances the image of the organization. The companies, who adopt this integrated marketing program over the traditional method of promotion where all elements of promotion are treated separately, are more effective in communicating all about themselves and their brands in the market place.
IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
Definition
The integrated marketing communication can be defined as under:
“A management concept that is designed to make all aspects of marketing communication such as - advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. – The American marketing association.
Features
- Outside-in approach: The key feature of Integrated Marketing Communication is that the process starts with the customer or prospect and then work back to the brand communicator in determining the most appropriate messages and media to persuade or induce the communicator’s brand. The IMC approach avoids an “inside-out” approach which starts from company to customer but it follows outside-in which starts with the customer to company and determine those communication channels that will provide the customers’ information needs and motivate them to purchase the brand.
2. Use of appropriate marketing communication tools: IMC tools include advertising, sales promotions, sponsorships, etc. all the tools such as advertising, sales promotions, sponsorships, etc. are not equally effective for all jobs. A professional marketing communicator selects those tools that are best for the job which enhances the image of an organization.
3. Message consistency: IMC sends all customers a consistent message about the company and its brands. The IMC includes all the communication tools that strive to present the same message and convey that message consistently across diverse message channels, or points of contact. Coordination of messages and media is critical to achieving a strong and unified brand image and moving consumers to action.
4. Build relationships: IMC trust that successful marketing communication requires building relationships between brands and their consumers. A relationship undergo the link between a brand and its customers. Successful relationships between customers and brands result in repeat purchasing and create loyalty toward a brand.
5. Influence consumer attitude: Successful IMC requires that communication efforts be directed at encouraging some form of behavioral response. The objective is to move people to action. An IMC program helps in creating awareness of the brand and provide its benefits to the customers and influence the customers to have a favorable attitude toward it.
6. Cost-effective: IMC helps in the optimum utilization of resources. The systematic communication mix helps in avoiding the duplication of images, photos, etc. IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
7. Creates an Integrated Communication Plan: if you are unable to get the right message to your potential customers at the right place and the right time the best marketing strategy in the world will ultimately fail. An integrated marketing communications plan matches your available budget of time and money to the most effective means for distributing your message.
8. Budget and allocate resources: An “integrated marketing communications plan” must have a target budget and resources assigned to each element of the plan. Depending on the size of budget, brands will probably need to make trade-offs between methods to achieve communication goals. A good integrated marketing communications plan can take marketing efforts to the next level.
Q2) Explain elements of IMC? 5 marks
A2)
The Integrated Marketing Communication seeks to have all promotional and marketing activities of an organization together, project a consistent and unified image of the organization to the target market. It focuses on a common goal and positioning through centralized messaging function.
It sends all customers a consistent message about the company and its brands. Thus it enhances the image of the organization. The companies, who adopt this integrated marketing program over the traditional method of promotion where all elements of promotion are treated separately, are more effective in communicating all about themselves and their brands in the market place.
IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
Definition
The integrated marketing communication can be defined as under:
“A management concept that is designed to make all aspects of marketing communication such as - advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. – The American marketing association.
Elements
- Printing marketing - Print is an important component of an integrated marketing campaign even in the digital era. Print advertising generates brand awareness and can serve as a gateway to more personalized marketing and it doesn’t require an Internet connection to read or share.
2. Banner ads - Banner ads create awareness of the organisation brand and help to facilitate inquiries by prospective customers. Banner ads is used for targeted advertising, as they are targeted to certain demographics at certain times so they are seen by those most likely to be interested in your product and when they are most likely to purchase.
3. Landing pages - Landing pages give the opportunity to make a great first impression and to deliver very specific content. If the landing page is powerful enough, then in no time you’ll have people signing up for your email list.
4. Email marketing - The email marketing is most customizable, personalized and convenient way to market, and allows the company constantly stay in touch with customers and keep them updated on your latest deals. Email marketing also allows the company to track which recipients click on the links and ultimately make purchases, helping you to understand the tendencies of your best customers.
5. Social media – Social media helps in creating relevant content for the company’s followers, and also strengthen their ties to the company and they will market on the company behalf. Establishing dialogue with and gathering from your followers is also a great way to make them feel special.
6. Organic Search Engine Marketing - Search engines rank results based on how relevant pages are to specific search words and phrases. This means you can tailor your pages to become more relevant to popular search words, moving your website up the ranks. This is referred to as Search Engine Optimization, or SEO.
7. Paid Search Engine Marketing - Paid search means buying the rights to a specific search phrase and having the company ad appear before, beside or below the organic search results.
8. Direct Mail Marketing - Direct marketing is important and brings big results. Taking the time and effort to mail something helps build brand perception.
Q3) Explain role of advertising in IMC? 8 marks
A3)
The Integrated Marketing Communication seeks to have all promotional and marketing activities of an organization together, project a consistent and unified image of the organization to the target market. It focuses on a common goal and positioning through centralized messaging function.
It sends all customers a consistent message about the company and its brands. Thus it enhances the image of the organization. The companies, who adopt this integrated marketing program over the traditional method of promotion where all elements of promotion are treated separately, are more effective in communicating all about themselves and their brands in the market place.
IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
Definition
The integrated marketing communication can be defined as under:
“A management concept that is designed to make all aspects of marketing communication such as - advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. – The American marketing association.
Importance of IMC
1) Awareness: IMC tools play an important role in creating awareness of the products with respect to brand name and brand availability. It brings to the notice of the potential customer the new varieties of goods available in the market.
2) Information: Product information is needed when the product is recently launched in the market. Potential customer must know about the product, features. IMC provides this information through various techniques so that the buyer can take correct decision while buying the goods.
3) To increase sales. A proper communication mix tends to increase the sales of the organization. This is possible as increased sales brings economies of large scale production which enables the seller to reduce cost and increase profit.
4) To inform the intermediaries. IMC act as a communication channel between the sellers and the intermediaries like dealer and agents. These intermediaries are regularly informed through sales literature, pamphlets, brochures, price list etc.
5) Expansion of the market: IMC help the seller to expand the business from local level to regional level and to national level . This expansion provides his goodwill, recognition through out the country.
6) More specialized media. It used to be said that mass media was enough to cover any advertiser's needs. But with everincreasing ad clutter, shorter attention spans and greater resistance to advertising, customers now tend to be a lot more selective: they shut out the stuff they feel they don't need, and go with the stuff that they want. Therefore with IMC sellers can retain the attention of customer by diverting their attention through various Communication Mix.
Role
Advertising plays an important role in marketing-mix as it creates brand awareness, develops brand image, develops brand loyalty, improves corporate image, gains competitive advantage, etc. Advertising also plays an important role with respect to all elements of IMC. The role of advertising with reference to the elements of IMC is explained as follows:
- Advertising and Sales Promotion: Sales promotion includes various techniques such as discounts, exchange offers, free samples, gifts, etc., which induce a desired response from the target customers to buy the products, and from the intermediaries to stock the products for sale purpose. Advertising plays an important role in sales promotion. Whenever, a Company comes up with sales promotion offers, the buyers need to be informed about the same.
2. Advertising and Sponsorships: A firm may sponsor various events such as sports, social and cultural activities. Sponsorship aims at creating a distinct image of the organisation (sponsor) and of its brands. For instance, Rolex – the king of luxury watches – maintains its distinct image by sponsoring Wimbeldon tennis tournament. The logo of Rolex is made visible at the Wimbeldon tennis courts.
3. Advertising and Personal Selling: Advertising makes the personal selling job easier. The salesperson need not give all possible details of the products, as the customers may be well aware of such details through ads. Also, the customers may be well convinced to purchase advertised brands, as they may be influenced by the ads. A salesperson dealing in advertised brands may be able to sell non-advertised brands as well. This is because, the customers may respect and trust the sales persons of reputed companies; as advertising creates good corporate image.
4. Advertising and Public Relations: Public relations is a strategic communication process that builds mutually beneficial relationships between organization and its public. It is the professional maintenance of a favourable public image by a Company.
5. Advertising and Direct Marketing: Direct marketing involves various techniques to sell the products directly to the customers, such as yellow pages, internet (online), telemarketing, direct mail (sales letters, catalogues), SMS and so on. Therefore, the direct marketing techniques may be good response from the buyers who are already aware of the brand through advertising.
6. Advertising and Packaging: A properly designed package can influence or induce buyers to buy the product. A well-designed package can communicate the type and quality of the product. Also, the advertisers may display the packages with the brand name in the ads. Therefore, the buyers become aware of the brand, and as such the buyers may identify the package at point of purchase, and accordingly may take a purchase decision, especially, in the case of impulse purchase products.
7. Trade Fairs and Exhibitions: At trade fairs, Companies can interact with prospective buyers and convince or induce them to purchase their products. Advertising can play an important role in trade fairs and exhibitions. Advertising can inform the target audience regarding the timings, date, and venue of the trade fair and exhibition. The ads may also inform the people of the special offers at the trade fairs and exhibitions.
8. Advertising and Publicity: Publicity is a form of mass communication that be used to promote products through news and articles published by the mass media about firm products, actions, awards, etc. Advertising can support and complement publicity. Advertising may be able to create a favourable image of the firm and its products.
Q4) Explain features of advertisement? 8 marks
A4)
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Features of advertisement
The main features of advertising:
- Provides information: Advertising's primary purpose is to provide information about products or services to prospective buyers. The details of products such as features, uses, prices, benefits, manufacturer's name, etc; and also the key message and brand name are in the advertisements. The information supplied through advertising educate and guide consumers and facilitate them to make a correct choice while buying a product.
2. Paid communication: Advertising is a form of paid communication. The advertiser pays to the media for giving publicity to his advertising message to inform or persuade an audience regarding a product, organization, or idea. He also decides the size, slogan, etc. given in the advertisement.
3. Non-personal presentation: Advertising is non-personal in character as against salesmanship, which is a personal or face to face communication. Here, the message is given to all and not to one specific individual. This rule is applicable to all media including the press.
4. Publicity: Advertising publicizes goods, services, ideas and event events. It is primarily for giving information to consumers. This primary purpose is to provide information related to the features and benefits of goods and services of different types. It offers new ideas to customers as its contents are meaningful. The aim is to make the popularize ideas and thereby promote sales.
5. Primarily for Persuasion: Advertising aims at the persuasion of potential customers. It attracts attention towards a particular product, creates a desire to have it, and finally persuade the consumers to visit the market and purchase the same. It has a psychological impact on consumers. It influences their buying decisions.
6. Target oriented: when advertising is target oriented it becomes effective and result-oriented. A targeted advertisement intensively focuses on a specific market or particular groups of customers (like teenagers, housewives, infants, children, etc.). Thus, the selection of a particular market is called a target market.
7. Art, science and profession: Advertising is universally accepted as art, science and a profession. It is an art as it needs creativity for raising its effectiveness. It is a science as it has its principles or rules. It is also a profession as it has a code of conduct for its members and operates within standards set by its organized bodies.
8. The element of a marketing mix: Advertising is an important part of a marketing mix. It supports the sales promotion efforts of the manufacturer. It makes a positive contribution to sales promotion provided other elements in the marketing mix are reasonably favorable. Many companies spend huge funds on advertisements and public relations.
9. Creativity: Advertising is a method of presenting a product in an artistic, attractive and agreeable manner. It is possible through the element of creativity. The creative people introduce creativity in advertisements. The Ads won't succeed without creativity. Therefore, creativity is called the ‘Essence of Advertising.’
Q5) Explain evolution of advertising? 5 marks
A5)
Concept
The word advertising comes form the latin word "advertere meaning” to turn the minds of towards".
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Evolution of advertising
Egyptians did the earliest known advertisement. They were the first to use ‘papyrus’ for advertising their goods and services. Then the Romans came. They used mosaics and artwork to promote their products. Then next, Athenians came. They took advertising to a whole new level, by hiring criers to stroll the street.
19th Century:
Thomas J. Barratt from London has been called “the father of modern advertising”. Working for the Pears Soap Company, Barratt created an effective advertising campaign which involved the use of targeted slogans, images and phrases for the company products. One of his slogans, “Good morning Have you used Pears’ soap?” was famous in its day and well into the 20th century. Pears Soap became the world’s first legally registered brand, under Barratt’s guidance and is therefore the world’s oldest continuously existing brand.
20th century –
- The first radio stations were established by radio equipment manufacturers and retailers who offered programmes in order to sell more radios to consumers in the early 1920’s.
- In the 1960s, campaigns featuring heavy spending in different mass media channels became more prominent
- To reach the target audiences extensive television and radio and magazine ads were used. Television split into hundreds of channels with different types of entertainment. This made targeting even broader in the early 1990’s.
- In the later part of 20th century internet was born. This changed the whole dynamics of advertisements. With the invention of Ad Server, marketing through the Internet opened new frontiers for advertisers. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access.
21st century –
Internet was the next big thing needed for the advertisement industry to grow. The use of ad server, and new technology like DSP, SSP to do precise targeting onto users, gave a tremendous boost to the industry.
With the use of Cookies on people’s computers and an increase in the mobile device, Online advertising grew three-fold with the use of personalized targeting.
The Internet has not just affected advertising alone; It changed the way, and manner people do business, interact with friends, family, etc.
Q6) Explain Benefits of advertising to Business firms and consumers? 8 marks
A6)
Concept
The word advertising comes form the latin word "advertere meaning” to turn the minds of towards".
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Benefits of advertising to Business firms and consumers
The benefits derived from advertising are numerous. It is one of the most important components of the marketing process. This is beneficial to manufacturers, traders, consumers and society as a whole. Advertising offers the following advantages.
- Introduces a new product in the market - Advertising plays significant role in the introduction of a new product in the market. It stimulates the people to purchase the product by showing the features, benefits, etc of the product or services.
- Expansion of the market - Advertising enables the manufacturer to expand his market. It helps in retaining the existing markets and exploring new markets for the product to attract new customer base. It helps in widening the marketing for the manufacturer’s products even by conveying the customers living at the far flung and remote areas
- Increased sales - Advertisement promote mass production to goods and increase the volume of sales. In other words, with additional expenditure on advertising sales can be increases. Selling expenses will decrease with every increase in sale.
- Fights competition - Advertising is greatly helpful in meeting the forces of competition prevalent in the market. Continuous advertising is very essential in order to save the product from the clutches of the competitors.
- Enhance goodwill - Advertising is helps in increasing goodwill of the organization. It introduces the manufacturer and his product to the people. Repeated advertising and better quality of products brings more reputation for the manufacturer and enhances goodwill for the concern.
- Educate the consumer - Advertising is educational and dynamic in nature. The customers with the help of advertisements get familiarized with new products and their diverse uses and also educate them about the new uses of existing products.
- Eliminate middle men - It aims at establishing a direct link between the manufacturer and the consumer, thereby eliminating the marketing intermediaries. This increases the profits of the manufacturer and the consumer gets the products at lower prices.
- Better quality products - Under different brand names different goods are advertised. A branded product assures a standard quality to the consumers. The manufacturer provides quality goods to the consumers and tries to win their customers confidence in his product.
- Supports the salesmanship - The work of a salesman are greatly facilitated through advertisement. The customers are already familiar with the product which the salesman sells. The selling efforts of a salesman are greatly supplemented by advertising.
- More employment opportunities - Advertising provides and creates more employment opportunities for many talented people like painters, photographers, singers, cartoonists, musicians, models and people working in different advertising agencies.
- Higher standard of living - The experience of the advanced nations shows that advertising is greatly responsible for raising the living standards of the people. In the words of Winston Churchil “advertising nourishes the consuming power of men and creates wants for better standard of living.” Advertising helps in bringing to the knowledge of the consumers different variety and better quality products, it has helped a lot in increasing the standard of living in a developing economy like India.
Benefits to manufacturers
- Large-scale production and marketing: Advertising is useful as a sales promotion technique. It gives information to consumers and encourages them to purchase more. Manufacturers expand their production base due to a higher market demand created through advertisements.
- Introducing new products: Advertising facilitates the introduction of new products. Due to it, information about new products is given to the people (prospects). A demand generates because of this, and the manufacturer can sell new products along with the existing ones
- Creates new demand: Advertising spreads information and encourages consumers to purchase new products. It creates a new demand. Customers are offered various concessions in the initial period. It generates positive responses from them, and soon new customers also respond. Thus, advertisement creates new demand from non-users.
- Effective personal selling: Advertising creates a proper background for personal selling. It gives advance information to the prospects. They visit the shop in order to purchase a particular product that they know through advertisements in media. The job of a salesman becomes easy as consumers develop an affinity for advertised products. In brief, it supports and supplements personal selling.
- Builds brand image: Advertising build brand image and this develops consumer loyalty towards a specific brand. Manufacturers introduce branding to popularize their products with a distinct personality. Brands get popular through advertisements. As a result, buyers develop loyalty towards a specific brand.
- Reduces cost of production: Advertising creates demand and promotes sales. It enables a manufacturer to conduct production on a large scale. It leads to a reduction in the cost of production and distribution. As a result, the profit margin of the manufacturer increases.
- Facing competition: Advertising aids a manufacturer to deal with market competition effectively. It helps him to promote and popularize his products. He can remove misunderstanding among consumers about his products through appropriate advertisements.
- Sales promotion: A manufacturer can make his sales promotion campaign successful by using the support of advertising. He can prepare a proper background for the success of such an ad-campaign as it facilitates direct communication with consumers.
- Goodwill builder: A manufacturer can build up goodwill in the business world and also among the group of customers through advertising. The social welfare programs and community service activities can get wide publicity through advertisements. The public can notice even the progress of the organization through it.
Benefits to customers
- Information and guide: Consumers get information and guidance from advertising. They can study the advertisements of competitors and select the appropriate products that are best suited and profitable to them. It helps to avoid their cheating and exploitation at the hands of middlemen.
- Acts as a reminder: Advertising act as a reminder to consumers and alerts them about the urgent product they need to purchase.
- Attracts customers: Advertising leads to competition among manufacturers and retailers. They have to offer something special in order to attract buyers. Such attraction offers benefits to consumers. For example, manufacturers have to bring down the price in order to attract customers. They have to supply quality goods in order to attract them more. All this is beneficial to consumers in terms of price and quality of goods.
- Raises living standards: Advertising raises the standard of living of people by supplying information about goods and services, which can offer convenience and pleasure to them. It guides consumers in the selection of most suitable products for their daily life. Thus, it provides a higher standard of living to consumers as a social group.
- Efficient product use: Consumers get information about uses or benefits of different products through advertising. They also get guidance as regards the right manner of using the product and helps to avoid any possible damage from the use of a purchased product. The information supplied through advertisements helps to know how to use a product in different ways.
- Removes misunderstanding: Advertising helps most consumers in removing their misunderstanding about certain products. They change their attitudes towards products and services due to it.
Q7) Explain classification of advertising? 8 marks
A7)
The word advertising comes form the latin word "advertere meaning” to turn the minds of towards".
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Classification on the basis of geographical spread –
- National advertising - When the advertisement is broadcasted across the country it is called national advertising. This advertisement is for peoples who are residents in that country because any company who runs an advertisement of its product, its main responsibility remains to target our local customers and also increase the sales of our product. For Example– Patanjali Ayurvedic Products.
- International advertising - These types of advertisements are broadcasted throughout the world and it is the process of providing information about persuading the customers and reminding the customers about the brands which are available at the global level. So, International advertising is also known as global advertising.
In the international advertising, cultural differences are also the barriers of global advertising. For Example– Advertisements of Mcdonalds, KFC, Pizza Hut, Apple (i phone), and Walmart, etc.
3. Local advertising - When the advertisements are broadcasted within a local area of a particular product. These advertisements must be according to local tastes and preferences. For Example– Advertisements of F.M., Local Newspapers, and so on.
Classification on the basis of target audience
- Consumers - This advertising is based on promoting products because it defines the consumer’s personal consumption. In these advertisements, the company focuses on the daily use of products which are used by the customers. For Example– FMCG Products like shampoo, soaps, and so on.
- Industrial advertising - This advertisement is focused on to promote industrial products such as raw materials capital items, and operating supplies. However, the industrial products are totally focused on the business to business activity.
- Trade advertising - It is undertaken by manufacturers of consumer goods as well as industrial goods. It is undertaken to influence the dealers to stock and promote their products.
- Professional advertising - It is undertaken to influence the professionals like doctors, lawyers, architects, professors, etc. The media used can be direct mail. Mostly, the professionals are approached personally by sales representatives to prescribe or recommend the product.
Classification on the basis of media
- Print media - For a long time print media is an advertising media that has been running. There are two main things are used to complete this advertisement, first is newspapers and second is magazines. This media includes various channels or things to promote their products like brochures, yellow papers, fliers, and journals.
- Electronic media - Since electronic media advertisement targets many audiences at once and is published in every country thus it is very popular advertising all over around the world. It includes televisions and radios, but television advertising is very costly than radio advertising.
- Online media - Online media is a very popular advertising and we also know it as internet advertising. This advertisement helps to promote the products in social media tools. It includes various media like- direct marketing, email marketing, search engine optimization, and banner advertising.
- Mural advertising - Mural Advertising is that advertising which is placed directly on a wall and another permanent surface. This advertising work as friendly with their target audience because they placed around them.
Classification on the basis of function
- To inform - When any advertising is advertised in any place, its main motive is to give full information about the product to the target customers. Through the advertisement, tell the customer about the features, uses, and durability of the product so that the customer buy the product and also became the potential buyer.
- To remind - Advertising advertise the products and services and also make our potential buyers. But the advertisements for anything should be continuously done, because if we quit the broadcasting of advertisement, then our customers will forget the products.
- To persuade - Advertising is a form of non-personal communication used to persuade or enhance to take a new action. It also helps to define the category of customers about suitability of the product.
Classification on the basis of action
- Immediate response - These kinds of advertisement provide immediate response in the form of purchase of the product. For Example– An advertisement for the offer can result in more sale of a product.
- Indirect response - These kinds of advertisement are work for building the brand image in the minds of the customers so that they can purchase the products over a period of time. For Example– An advertisement related to banks, insurance policy, and so on.
Q8) Explain active participants of advertising? 8 marks
A8)
The word advertising comes form the latin word "advertere meaning” to turn the minds of towards".
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Active participants
Active participants are those individuals or organisations which are actively associated in the field of advertising. Following are the group of people who are actively involved in advertising.
- Advertiser: Seller who manufacture and market consumer products are the prominent group of advertisers.
Examples - Hindustan unilever , proctor and gamble, Seimen and Larson and toubro. The second prominent segment among advertisers is retailers. They stock the products and sell them to the ultimate consumers. Also, government and social organization are the active participant in this category.
- Target audience : Target audience are the recipient of the advertising message. Every message is either directed to a mass audience and class audience. Advertising for promoting sales desire to cover this target audience. Advertising message intends to cover the potential user and non user who may purchase the product in future.
- Advertising Agencies : An advertiser has two options -
- To design, develop and produce and advertising message and get it placed in desired media directly through his own sales or advertising department,
- To assign the entire job of advertising to a team of highly professionalized, specialized, independent, advertising agency. An advertising agency is consist of creative people, who design, develop and produce, advertising message with creative ideas and get it placed in the desired advertising media, on behalf of its client (the advertiser). The advertising agencies usually charge a commission of 15% on the media bills from the media owners. In addition, they charge out-of pocket expenses to their clients, i.e. the advertisers.
- Advertising Production People (Artists): With the help of artist like copywriters, artists, photographers, typographers, layout designers, editors and such other creative people the production of impressive and persuasive advertisements is possible. Such people are usually employed by the ad agencies or, their services may be hired by the ad agencies on job basis.
- Target Audience (Readers, Listeners, Viewers and Present and Future Buyers): Advertising messages are given about products or services and ideas to readers, listeners, viewers and actual and potential buyers, who are known as the audience. The target audience may be classified into the following three categories,
- Existing or, current consumers, who are reminded and influenced to continue their support and to increase the volume of their buying,
- Consumers, who buy and use, a competitor brand; so they are induce to buy the advertised brand, instead of the competitor brand; and
- Those consumers, who do not use any such product; and even then, are persuaded to buy the advertised product.
- Mass Media : Advertising messages are communicated to the target audience through different mass media, such as,
- Print Media: They consist of newspapers, magazines, journals, handbills, etc.
- Electronic Media: They consist of radio, television motion pictures, video, multi-media and the internet.
- Outdoor Media: They consist of posters, hoarding, handbills, stickers air balloons, local cinema houses, and transit media.
- Direct Mail: It consists of brouchers, leaflets, pamphlets, letters and return cards addressed to consumers.
- Government Authorities: The business of advertising is regulated by the government department. The government adopts law and regulation which have a direct or an indirect bearing on the advertising. Some of authorities regulating advertising are ASCI (Advertising standards council of India) and ABC (Audit Bureau of circulation).
- Advertising Production Firms: Advertising production firms are the support agencies which help in the production of advertisement. This includes copywriter, artist, photographers, typographers, producer, editors. These are the people who transform ideas into finished forms and the success and failure of the advertisement depend on these people.
Q9) Explain features and elements of IMC? 8 marks
A9)
Concept
The Integrated Marketing Communication seeks to have all promotional and marketing activities of an organization together, project a consistent and unified image of the organization to the target market. It focuses on a common goal and positioning through centralized messaging function.
It sends all customers a consistent message about the company and its brands. Thus it enhances the image of the organization. The companies, who adopt this integrated marketing program over the traditional method of promotion where all elements of promotion are treated separately, are more effective in communicating all about themselves and their brands in the market place.
IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
Definition
The integrated marketing communication can be defined as under:
“A management concept that is designed to make all aspects of marketing communication such as - advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. – The American marketing association.
Features
- Outside-in approach: The key feature of Integrated Marketing Communication is that the process starts with the customer or prospect and then work back to the brand communicator in determining the most appropriate messages and media to persuade or induce the communicator’s brand. The IMC approach avoids an “inside-out” approach which starts from company to customer but it follows outside-in which starts with the customer to company and determine those communication channels that will provide the customers’ information needs and motivate them to purchase the brand.
2. Use of appropriate marketing communication tools: IMC tools include advertising, sales promotions, sponsorships, etc. all the tools such as advertising, sales promotions, sponsorships, etc. are not equally effective for all jobs. A professional marketing communicator selects those tools that are best for the job which enhances the image of an organization.
3. Message consistency: IMC sends all customers a consistent message about the company and its brands. The IMC includes all the communication tools that strive to present the same message and convey that message consistently across diverse message channels, or points of contact. Coordination of messages and media is critical to achieving a strong and unified brand image and moving consumers to action.
4. Build relationships: IMC trust that successful marketing communication requires building relationships between brands and their consumers. A relationship undergo the link between a brand and its customers. Successful relationships between customers and brands result in repeat purchasing and create loyalty toward a brand.
5. Influence consumer attitude: Successful IMC requires that communication efforts be directed at encouraging some form of behavioral response. The objective is to move people to action. An IMC program helps in creating awareness of the brand and provide its benefits to the customers and influence the customers to have a favorable attitude toward it.
6. Cost-effective: IMC helps in the optimum utilization of resources. The systematic communication mix helps in avoiding the duplication of images, photos, etc. IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
7. Creates an Integrated Communication Plan: if you are unable to get the right message to your potential customers at the right place and the right time the best marketing strategy in the world will ultimately fail. An integrated marketing communications plan matches your available budget of time and money to the most effective means for distributing your message.
8. Budget and allocate resources: An “integrated marketing communications plan” must have a target budget and resources assigned to each element of the plan. Depending on the size of budget, brands will probably need to make trade-offs between methods to achieve communication goals. A good integrated marketing communications plan can take marketing efforts to the next level.
Elements
- Printing marketing - Print is an important component of an integrated marketing campaign even in the digital era. Print advertising generates brand awareness and can serve as a gateway to more personalized marketing and it doesn’t require an Internet connection to read or share.
2. Banner ads - Banner ads create awareness of the organisation brand and help to facilitate inquiries by prospective customers. Banner ads is used for targeted advertising, as they are targeted to certain demographics at certain times so they are seen by those most likely to be interested in your product and when they are most likely to purchase.
3. Landing pages - Landing pages give the opportunity to make a great first impression and to deliver very specific content. If the landing page is powerful enough, then in no time you’ll have people signing up for your email list.
4. Email marketing - The email marketing is most customizable, personalized and convenient way to market, and allows the company constantly stay in touch with customers and keep them updated on your latest deals. Email marketing also allows the company to track which recipients click on the links and ultimately make purchases, helping you to understand the tendencies of your best customers.
5. Social media – Social media helps in creating relevant content for the company’s followers, and also strengthen their ties to the company and they will market on the company behalf. Establishing dialogue with and gathering from your followers is also a great way to make them feel special.
6. Organic Search Engine Marketing - Search engines rank results based on how relevant pages are to specific search words and phrases. This means you can tailor your pages to become more relevant to popular search words, moving your website up the ranks. This is referred to as Search Engine Optimization, or SEO.
7. Paid Search Engine Marketing - Paid search means buying the rights to a specific search phrase and having the company ad appear before, beside or below the organic search results.
8. Direct Mail Marketing - Direct marketing is important and brings big results. Taking the time and effort to mail something helps build brand perception.
Q10) Explain features and evolution of advertising? 8 marks
A10)
Concept
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Features of advertisement
The main features of advertising:
- Provides information: Advertising's primary purpose is to provide information about products or services to prospective buyers. The details of products such as features, uses, prices, benefits, manufacturer's name, etc; and also the key message and brand name are in the advertisements. The information supplied through advertising educate and guide consumers and facilitate them to make a correct choice while buying a product.
2. Paid communication: Advertising is a form of paid communication. The advertiser pays to the media for giving publicity to his advertising message to inform or persuade an audience regarding a product, organization, or idea. He also decides the size, slogan, etc. given in the advertisement.
3. Non-personal presentation: Advertising is non-personal in character as against salesmanship, which is a personal or face to face communication. Here, the message is given to all and not to one specific individual. This rule is applicable to all media including the press.
4. Publicity: Advertising publicizes goods, services, ideas and event events. It is primarily for giving information to consumers. This primary purpose is to provide information related to the features and benefits of goods and services of different types. It offers new ideas to customers as its contents are meaningful. The aim is to make the popularize ideas and thereby promote sales.
5. Primarily for Persuasion: Advertising aims at the persuasion of potential customers. It attracts attention towards a particular product, creates a desire to have it, and finally persuade the consumers to visit the market and purchase the same. It has a psychological impact on consumers. It influences their buying decisions.
6. Target oriented: when advertising is target oriented it becomes effective and result-oriented. A targeted advertisement intensively focuses on a specific market or particular groups of customers (like teenagers, housewives, infants, children, etc.). Thus, the selection of a particular market is called a target market.
7. Art, science and profession: Advertising is universally accepted as art, science and a profession. It is an art as it needs creativity for raising its effectiveness. It is a science as it has its principles or rules. It is also a profession as it has a code of conduct for its members and operates within standards set by its organized bodies.
8. The element of a marketing mix: Advertising is an important part of a marketing mix. It supports the sales promotion efforts of the manufacturer. It makes a positive contribution to sales promotion provided other elements in the marketing mix are reasonably favorable. Many companies spend huge funds on advertisements and public relations.
9. Creativity: Advertising is a method of presenting a product in an artistic, attractive and agreeable manner. It is possible through the element of creativity. The creative people introduce creativity in advertisements. The Ads won't succeed without creativity. Therefore, creativity is called the ‘Essence of Advertising.’
Evolution of advertising
Egyptians did the earliest known advertisement. They were the first to use ‘papyrus’ for advertising their goods and services. Then the Romans came. They used mosaics and artwork to promote their products. Then next, Athenians came. They took advertising to a whole new level, by hiring criers to stroll the street.
19th Century:
Thomas J. Barratt from London has been called “the father of modern advertising”. Working for the Pears Soap Company, Barratt created an effective advertising campaign which involved the use of targeted slogans, images and phrases for the company products. One of his slogans, “Good morning Have you used Pears’ soap?” was famous in its day and well into the 20th century. Pears Soap became the world’s first legally registered brand, under Barratt’s guidance and is therefore the world’s oldest continuously existing brand.
20th century –
- The first radio stations were established by radio equipment manufacturers and retailers who offered programmes in order to sell more radios to consumers in the early 1920’s.
- In the 1960s, campaigns featuring heavy spending in different mass media channels became more prominent
- To reach the target audiences extensive television and radio and magazine ads were used. Television split into hundreds of channels with different types of entertainment. This made targeting even broader in the early 1990’s.
- In the later part of 20th century internet was born. This changed the whole dynamics of advertisements. With the invention of Ad Server, marketing through the Internet opened new frontiers for advertisers. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access.
21st century –
Internet was the next big thing needed for the advertisement industry to grow. The use of ad server, and new technology like DSP, SSP to do precise targeting onto users, gave a tremendous boost to the industry.
With the use of Cookies on people’s computers and an increase in the mobile device, Online advertising grew three-fold with the use of personalized targeting.
The Internet has not just affected advertising alone; It changed the way, and manner people do business, interact with friends, family, etc.
Q11) Write about classification of advertising on the basis of geographical spread?
A11)
Concept
The word advertising comes form the latin word "advertere meaning” to turn the minds of towards".
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent.
Definition
According to W.J Stanton, “ advertising consist of all activities involved in presenting to an audience a non – personal, sponsor – identified, paid for a message about a product or organization.
According to American marketing association, “Advertising is a paid form of non personal presentation and promotion of ideas, goods, and services of an identified sponsor”.
Classification on the basis of geographical spread –
- National advertising - When the advertisement is broadcasted across the country it is called national advertising. This advertisement is for peoples who are residents in that country because any company who runs an advertisement of its product, its main responsibility remains to target our local customers and also increase the sales of our product. For Example– Patanjali Ayurvedic Products.
It is generally undertaken by manufactures of branded goods, for which, advertising messages is communicated to consumers allover the country. Almost all possible mass media, including national newspapers, radio and television network, are employed for national advertising. Product services, and ideas, which have demand all over the country, are suitable for national advertising. In India, Indian Airline Hindustan Lever Ltd., Vicco, Godrej, Bajaj and Kirloskar are a few leading advertisers at national level. Likewise, detergents, soaps, toothpastes, cosmetics, scooters, cars, and bicycles, are some of the products, which are advertised all over the country.
2. International advertising - These types of advertisements are broadcasted throughout the world and it is the process of providing information about persuading the customers and reminding the customers about the brands which are available at the global level. So, International advertising is also known as global advertising.
In the international advertising, cultural differences are also the barriers of global advertising. For Example– Advertisements of Mcdonalds, KFC, Pizza Hut, Apple (i phone), and Walmart, etc.
3. Local advertising - When the advertisements are broadcasted within a local area of a particular product. These advertisements must be according to local tastes and preferences. It is also known as „retail advertising‟. It is undertaken by local retail stores, departmental stores, co-operative stores, selling cloth, saris and other consumer goods and consumer durables. It is directed at local customers. Media, used for local advertising, are shop decorations, local newspapers, magazines, posters, pamphlets, hoarding, new signs, local cinema houses, etc
4. Regional Advertising: It has wider coverage, as compared to local advertising. It covers a particular region, which may be one state, or, more than one state, the people of which may be having a common tongue, or, using one common product. It is undertaken by manufacture, or, regional distributor of a product. Media, used for regional advertising, include regional newspapers, magazines, radio, regional T.V., outdoor media, etc. It is considered to be an ideal form of advertising for launching and marketing a new product in a specific region.
Q12) Explain IMC in detail? 5 marks
A12)
Concept
The Integrated Marketing Communication seeks to have all promotional and marketing activities of an organization together, project a consistent and unified image of the organization to the target market. It focuses on a common goal and positioning through centralized messaging function.
It sends all customers a consistent message about the company and its brands. Thus it enhances the image of the organization. The companies, who adopt this integrated marketing program over the traditional method of promotion where all elements of promotion are treated separately, are more effective in communicating all about themselves and their brands in the market place.
IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
Definition
The integrated marketing communication can be defined as under:
“A management concept that is designed to make all aspects of marketing communication such as - advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. – The American marketing association.
Evolution of IMC
The term Integrated Marketing Communications was first coined in 1989. Since that era, marketing communications has shifted from a dominance of advertising. The American Association of Advertising Associations (4As) defined IMC as “an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other.” At that time, the 4As recognized the importance of various mediums including advertising, public relations, sales promotion and direct marketing for delivering consistent messages across marketing channels.
The need to focus beyond advertising predominately was due to several factors. It was becoming increasingly difficult for a single message to have a significant impact; there were other ways to effectively reach customers; and technology advances made audience targeting and database marketing more efficient and cost-effective.
Integrated marketing communications uses the principles of the four Ps (product, price, promotion and place) to pull together all aspects of marketing communications. These include advertising (broadcast, outdoor, online and direct marketing), online/digital media (e-commerce, e-mail marketing, social media, mobile marketing, search engine optimization and content marketing), public relations, promotions, sales, customer service, trade shows/events and product promotions.
In today’s world, organizations not only push out messages but also use technology to reach their target audiences. Businesses and organizations rely on Internet presence to tell their story and provide the ability to purchase products, when appropriate. Organizations also use social media to interact with customers and prospective customers. And since the Internet is so highly used as a source of information, organizations and businesses strive to rank in the top listing of an Internet search.
Overall, it’s not enough to just reach the customer. Integrated marketing communications at its best is the most cost-effective and efficient mix of mediums to move a target audience through the buying process, based on the organization’s goals, objectives and budget.
Importance of IMC
1) Awareness: IMC tools play an important role in creating awareness of the products with respect to brand name and brand availability. It brings to the notice of the potential customer the new varieties of goods available in the market.
2) Information: Product information is needed when the product is recently launched in the market. Potential customer must know about the product, features. IMC provides this information through various techniques so that the buyer can take correct decision while buying the goods.
3) To increase sales: A proper communication mix tends to increase the sales of the organization. This is possible as increased sales brings economies of large scale production which enables the seller to reduce cost and increase profit.
4) To inform the intermediaries; IMC act as a communication channel between the sellers and the intermediaries like dealer and agents. These intermediaries are regularly informed through sales literature, pamphlets, brochures, price list etc.
5) Expansion of the market: IMC help the seller to expand the business from local level to regional level and to national level . This expansion provides his goodwill, recognition through out the country.
6) More specialized media: It used to be said that mass media was enough to cover any advertiser's needs. But with ever increasing ad clutter, shorter attention spans and greater resistance to advertising, customers now tend to be a lot more selective: they shut out the stuff they feel they don't need, and go with the stuff that they want. Therefore with IMC sellers can retain the attention of customer by diverting their attention through various Communication Mix.
Q13) Explain benefits of advertising to Business firms? 5 marks
A13)
The word advertising comes form the latin word "advertere meaning” to turn the minds of towards".
Advertising can be defined as a non personal presentation and promotion of ideas, goods or services paid by an identified sponsor. It is non personal mass communication which has become a potent means of education and mass selling. It consist of all the advertisements involved in presenting product information targeting audiences through media such as newspaper, magazines, catalogs, booklets, posters, television, radios, cards, calendars, transport, etc.
Advertising is used for communicating business information to the present and prospective customers. It usually provides information about the advertising firm, its product qualities, place of availability of its products, etc. Advertisement is indispensable for both the sellers and the buyers. However, it is more important for the sellers. In the modern age of large scale production, producers cannot think of pushing sale of their products without advertising them. Advertisement supplements personal selling to a great extent.
Benefits to manufacturers
- Large-scale production and marketing: Advertising is useful as a sales promotion technique. It gives information to consumers and encourages them to purchase more. Manufacturers expand their production base due to a higher market demand created through advertisements.
- Introducing new products: Advertising facilitates the introduction of new products. Due to it, information about new products is given to the people (prospects). A demand generates because of this, and the manufacturer can sell new products along with the existing ones.
- Creates new demand: Advertising spreads information and encourages consumers to purchase new products. It creates a new demand. Customers are offered various concessions in the initial period. It generates positive responses from them, and soon new customers also respond. Thus, advertisement creates new demand from non-users.
- Effective personal selling: Advertising creates a proper background for personal selling. It gives advance information to the prospects. They visit the shop in order to purchase a particular product that they know through advertisements in media. The job of a salesman becomes easy as consumers develop an affinity for advertised products. In brief, it supports and supplements personal selling.
- Builds brand image: Advertising build brand image and this develops consumer loyalty towards a specific brand. Manufacturers introduce branding to popularize their products with a distinct personality. Brands get popular through advertisements. As a result, buyers develop loyalty towards a specific brand.
- Reduces cost of production: Advertising creates demand and promotes sales. It enables a manufacturer to conduct production on a large scale. It leads to a reduction in the cost of production and distribution. As a result, the profit margin of the manufacturer increases.
- Facing competition: Advertising aids a manufacturer to deal with market competition effectively. It helps him to promote and popularize his products. He can remove misunderstanding among consumers about his products through appropriate advertisements.
- Sales promotion: A manufacturer can make his sales promotion campaign successful by using the support of advertising. He can prepare a proper background for the success of such an ad-campaign as it facilitates direct communication with consumers.
- Goodwill builder: A manufacturer can build up goodwill in the business world and also among the group of customers through advertising. The social welfare programs and community service activities can get wide publicity through advertisements. The public can notice even the progress of the organization through it.
Q14) explain the evolution of advertising and active participants? 12 marks
Solution
A14) Evolution of advertising
Egyptians did the earliest known advertisement. They were the first to use ‘papyrus’ for advertising their goods and services. Then the Romans came. They used mosaics and artwork to promote their products. Then next, Athenians came. They took advertising to a whole new level, by hiring criers to stroll the street.
19th Century:
Thomas J. Barratt from London has been called “the father of modern advertising”. Working for the Pears Soap Company, Barratt created an effective advertising campaign which involved the use of targeted slogans, images and phrases for the company products. One of his slogans, “Good morning Have you used Pears’ soap?” was famous in its day and well into the 20th century. Pears Soap became the world’s first legally registered brand, under Barratt’s guidance and is therefore the world’s oldest continuously existing brand.
20th century –
- The first radio stations were established by radio equipment manufacturers and retailers who offered programmes in order to sell more radios to consumers in the early 1920’s.
- In the 1960s, campaigns featuring heavy spending in different mass media channels became more prominent
- To reach the target audiences extensive television and radio and magazine ads were used. Television split into hundreds of channels with different types of entertainment. This made targeting even broader in the early 1990’s.
- In the later part of 20th century internet was born. This changed the whole dynamics of advertisements. With the invention of Ad Server, marketing through the Internet opened new frontiers for advertisers. Entire corporations operated solely on advertising revenue, offering everything from coupons to free Internet access.
21st century –
Internet was the next big thing needed for the advertisement industry to grow. The use of ad server, and new technology like DSP, SSP to do precise targeting onto users, gave a tremendous boost to the industry.
With the use of Cookies on people’s computers and an increase in the mobile device, Online advertising grew three-fold with the use of personalized targeting.
The Internet has not just affected advertising alone; It changed the way, and manner people do business, interact with friends, family, etc.
Active participants
Active participants are those individuals or organisations which are actively associated in the field of advertising. Following are the group of people who are actively involved in advertising.
- Advertiser: Seller who manufacture and market consumer products are the prominent group of advertisers.
Examples - Hindustan unilever , proctor and gamble, Seimen and Larson and toubro. The second prominent segment among advertisers is retailers. They stock the products and sell them to the ultimate consumers. Also, government and social organization are the active participant in this category.
- Target audience: target audience are the recipient of the advertising message. Every message is either directed to a mass audience and class audience. Advertising for promoting sales desire to cover this target audience. Advertising message intends to cover the potential user and non user who may purchase the product in future.
- Advertising Agencies : An advertiser has two options
- To design, develop and produce and advertising message and get it placed in desired media directly through his own sales or advertising department,
- To assign the entire job of advertising to a team of highly professionalized, specialized, independent, advertising agency. An advertising agency is consist of creative people, who design, develop and produce, advertising message with creative ideas and get it placed in the desired advertising media, on behalf of its client (the advertiser). The advertising agencies usually charge a commission of 15% on the media bills from the media owners. In addition, they charge out-of pocket expenses to their clients, i.e. the advertisers.
- Advertising Production People (Artists): With the help of artist like copywriters, artists, photographers, typographers, layout designers, editors and such other creative people the production of impressive and persuasive advertisements is possible. Such people are usually employed by the ad agencies or, their services may be hired by the ad agencies on job basis.
- Target Audience (Readers, Listeners, Viewers and Present and Future Buyers): Advertising messages are given about products or services and ideas to readers, listeners, viewers and actual and potential buyers, who are known as the audience. The target audience may be classified into the following three categories,
- Existing or, current consumers, who are reminded and influenced to continue their support and to increase the volume of their buying,
- Consumers, who buy and use, a competitor brand; so they are induce to buy the advertised brand, instead of the competitor brand; and
- Those consumers, who do not use any such product; and even then, are persuaded to buy the advertised product.
- Mass Media: Advertising messages are communicated to the target audience through different mass media, such as,
- Print Media: They consist of newspapers, magazines, journals, handbills, etc.
- Electronic Media: They consist of radio, television motion pictures, video, multi-media and the internet.
- Outdoor Media: They consist of posters, hoarding, handbills, stickers air balloons, local cinema houses, and transit media.
- Direct Mail: It consists of brouchers, leaflets, pamphlets, letters and return cards addressed to consumers.
- Government Authorities: The business of advertising is regulated by the government department. The government adopts law and regulation which have a direct or an indirect bearing on the advertising. Some of authorities regulating advertising are ASCI (Advertising standards council of India) and ABC (Audit Bureau of circulation).
- Advertising Production Firms: Advertising production firms are the support agencies which help in the production of advertisement. This includes copywriter, artist, photographers, typographers, producer, editors. These are the people who transform ideas into finished forms and the success and failure of the advertisement depend on these people.
Q15) Explain features, elements and role of IMC in advertising? 12 marks
A15)
The Integrated Marketing Communication seeks to have all promotional and marketing activities of an organization together, project a consistent and unified image of the organization to the target market. It focuses on a common goal and positioning through centralized messaging function.
It sends all customers a consistent message about the company and its brands. Thus it enhances the image of the organization. The companies, who adopt this integrated marketing program over the traditional method of promotion where all elements of promotion are treated separately, are more effective in communicating all about themselves and their brands in the market place.
IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
Definition
The integrated marketing communication can be defined as under:
“A management concept that is designed to make all aspects of marketing communication such as - advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. – The American marketing association.
Evolution of IMC
The term Integrated Marketing Communications was first coined in 1989. Since that era, marketing communications has shifted from a dominance of advertising. The American Association of Advertising Associations (4As) defined IMC as “an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other.” At that time, the 4As recognized the importance of various mediums including advertising, public relations, sales promotion and direct marketing for delivering consistent messages across marketing channels.
The need to focus beyond advertising predominately was due to several factors. It was becoming increasingly difficult for a single message to have a significant impact; there were other ways to effectively reach customers; and technology advances made audience targeting and database marketing more efficient and cost-effective.
Integrated marketing communications uses the principles of the four Ps (product, price, promotion and place) to pull together all aspects of marketing communications. These include advertising (broadcast, outdoor, online and direct marketing), online/digital media (e-commerce, e-mail marketing, social media, mobile marketing, search engine optimization and content marketing), public relations, promotions, sales, customer service, trade shows/events and product promotions.
In today’s world, organizations not only push out messages but also use technology to reach their target audiences. Businesses and organizations rely on Internet presence to tell their story and provide the ability to purchase products, when appropriate. Organizations also use social media to interact with customers and prospective customers. And since the Internet is so highly used as a source of information, organizations and businesses strive to rank in the top listing of an Internet search.
Overall, it’s not enough to just reach the customer. Integrated marketing communications at its best is the most cost-effective and efficient mix of mediums to move a target audience through the buying process, based on the organization’s goals, objectives and budget.
Importance of IMC
- Awareness: IMC tools play an important role in creating awareness of the products with respect to brand name and brand availability. It brings to the notice of the potential customer the new varieties of goods available in the market.
2. Information: Product information is needed when the product is recently launched in the market. Potential customer must know about the product, features. IMC provides this information through various techniques so that the buyer can take correct decision while buying the goods.
3. To increase sales: A proper communication mix tends to increase the sales of the organization. This is possible as increased sales brings economies of large scale production which enables the seller to reduce cost and increase profit.
4. To inform the intermediaries: IMC act as a communication channel between the sellers and the intermediaries like dealer and agents. These intermediaries are regularly informed through sales literature, pamphlets, brochures, price list etc.
5. Expansion of the market: IMC help the seller to expand the business from local level to regional level and to national level. This expansion provides his goodwill, recognition through out the country.
6. More specialized media: It used to be said that mass media was enough to cover any advertiser's needs. But with everincreasing ad clutter, shorter attention spans and greater resistance to advertising, customers now tend to be a lot more selective: they shut out the stuff they feel they don't need, and go with the stuff that they want. Therefore with IMC sellers can retain the attention of customer by diverting their attention through various Communication Mix.
Features
- Outside-in approach: The key feature of Integrated Marketing Communication is that the process starts with the customer or prospect and then work back to the brand communicator in determining the most appropriate messages and media to persuade or induce the communicator’s brand. The IMC approach avoids an “inside-out” approach which starts from company to customer but it follows outside-in which starts with the customer to company and determine those communication channels that will provide the customers’ information needs and motivate them to purchase the brand.
2. Use of appropriate marketing communication tools: IMC tools include advertising, sales promotions, sponsorships, etc. all the tools such as advertising, sales promotions, sponsorships, etc. are not equally effective for all jobs. A professional marketing communicator selects those tools that are best for the job which enhances the image of an organization.
3. Message consistency: IMC sends all customers a consistent message about the company and its brands. The IMC includes all the communication tools that strive to present the same message and convey that message consistently across diverse message channels, or points of contact. Coordination of messages and media is critical to achieving a strong and unified brand image and moving consumers to action.
4. Build relationships: IMC trust that successful marketing communication requires building relationships between brands and their consumers. A relationship undergo the link between a brand and its customers. Successful relationships between customers and brands result in repeat purchasing and create loyalty toward a brand.
5. Influence consumer attitude: Successful IMC requires that communication efforts be directed at encouraging some form of behavioral response. The objective is to move people to action. An IMC program helps in creating awareness of the brand and provide its benefits to the customers and influence the customers to have a favorable attitude toward it.
6. Cost-effective: IMC helps in the optimum utilization of resources. The systematic communication mix helps in avoiding the duplication of images, photos, etc. IMC is an amalgamation of all marketing tools, approaches and resources within a company which maximizes impact on the consumer mind resulting in maximum profit at minimum cost.
7. Creates an Integrated Communication Plan: if you are unable to get the right message to your potential customers at the right place and the right time the best marketing strategy in the world will ultimately fail. An integrated marketing communications plan matches your available budget of time and money to the most effective means for distributing your message.
8. Budget and allocate resources: An “integrated marketing communications plan” must have a target budget and resources assigned to each element of the plan. Depending on the size of budget, brands will probably need to make trade-offs between methods to achieve communication goals. A good integrated marketing communications plan can take marketing efforts to the next level.
Elements
- Printing marketing - print is an important component of an integrated marketing campaign even in the digital era. Print advertising generates brand awareness and can serve as a gateway to more personalized marketing and it doesn’t require an Internet connection to read or share.
2. Banner ads - Banner ads create awareness of the organisation brand and help to facilitate inquiries by prospective customers. Banner ads is used for targeted advertising, as they are targeted to certain demographics at certain times so they are seen by those most likely to be interested in your product and when they are most likely to purchase.
3. Landing pages - Landing pages give the opportunity to make a great first impression and to deliver very specific content. If the landing page is powerful enough, then in no time you’ll have people signing up for your email list.
4. Email marketing - The email marketing is most customizable, personalized and convenient way to market, and allows the company constantly stay in touch with customers and keep them updated on your latest deals. Email marketing also allows the company to track which recipients click on the links and ultimately make purchases, helping you to understand the tendencies of your best customers.
5. Social media – social media helps in creating relevant content for the company’s followers, and also strengthen their ties to the company and they will market on the company behalf. Establishing dialogue with and gathering from your followers is also a great way to make them feel special.
6. Organic Search Engine Marketing - Search engines rank results based on how relevant pages are to specific search words and phrases. This means you can tailor your pages to become more relevant to popular search words, moving your website up the ranks. This is referred to as Search Engine Optimization, or SEO.
7. Paid Search Engine Marketing - Paid search means buying the rights to a specific search phrase and having the company ad appear before, beside or below the organic search results.
8. Direct Mail Marketing - direct marketing is important and brings big results. Taking the time and effort to mail something helps build brand perception.
Role of advertising in IMC
Advertising plays an important role in marketing-mix as it creates brand awareness, develops brand image, develops brand loyalty, improves corporate image, gains competitive advantage, etc. Advertising also plays an important role with respect to all elements of IMC. The role of advertising with reference to the elements of IMC is explained as follows:
- Advertising and Sales Promotion: Sales promotion includes various techniques such as discounts, exchange offers, free samples, gifts, etc., which induce a desired response from the target customers to buy the products, and from the intermediaries to stock the products for sale purpose. Advertising plays an important role in sales promotion. Whenever, a Company comes up with sales promotion offers, the buyers need to be informed about the same.
2. Advertising and Sponsorships: A firm may sponsor various events such as sports, social and cultural activities. Sponsorship aims at creating a distinct image of the organisation (sponsor) and of its brands. For instance, Rolex – the king of luxury watches – maintains its distinct image by sponsoring Wimbeldon tennis tournament. The logo of Rolex is made visible at the Wimbeldon tennis courts.
3. Advertising and Personal Selling: Advertising makes the personal selling job easier. The salesperson need not give all possible details of the products, as the customers may be well aware of such details through ads. Also, the customers may be well convinced to purchase advertised brands, as they may be influenced by the ads. A salesperson dealing in advertised brands may be able to sell non-advertised brands as well. This is because, the customers may respect and trust the sales persons of reputed companies; as advertising creates good corporate image.
4. Advertising and Public Relations: Public relations is a strategic communication process that builds mutually beneficial relationships between organization and its public. It is the professional maintenance of a favourable public image by a Company.
5. Advertising and Direct Marketing: Direct marketing involves various techniques to sell the products directly to the customers, such as yellow pages, internet (online), telemarketing, direct mail (sales letters, catalogues), SMS and so on. Therefore, the direct marketing techniques may be good response from the buyers who are already aware of the brand through advertising.
6. Advertising and Packaging: A properly designed package can influence or induce buyers to buy the product. A well-designed package can communicate the type and quality of the product. Also, the advertisers may display the packages with the brand name in the ads. Therefore, the buyers become aware of the brand, and as such the buyers may identify the package at point of purchase, and accordingly may take a purchase decision, especially, in the case of impulse purchase products.
7. Trade Fairs and Exhibitions: At trade fairs, Companies can interact with prospective buyers and convince or induce them to purchase their products. Advertising can play an important role in trade fairs and exhibitions. Advertising can inform the target audience regarding the timings, date, and venue of the trade fair and exhibition. The ads may also inform the people of the special offers at the trade fairs and exhibitions.
8. Advertising and Publicity: Publicity is a form of mass communication that be used to promote products through news and articles published by the mass media about firm products, actions, awards, etc. Advertising can support and complement publicity. Advertising may be able to create a favourable image of the firm and its products.
