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Integrated Marketing Communications: Advertising
Integrated Marketing Communications: Advertising
Bharadwaj
MODULE 1
Advertising
Objectives of Advertising
• Build Awareness
• TOMA factor important given today’s time pressures
• In the Introductory phase of the PLC
• Position a product/brand
• Build preference
• Differentiate your product/brand
• The primary purpose of Advertising is to position your product
• David Ogilvy, founder of Ogilvy and Mather
• Differentiation is achieved as a result of advertising
The Ad Agency
Sales Promotion
Sampling
Premium
Price off
Rebate
Bonus Packs
Frequency Programme
Trade-Oriented
Sales Promotion
Trade Allowances
Incentives
• quantity discounts
• cash discounts
• encourage the reseller to stock more
• apply “stock pressure”
Contests
Cooperative Advertising
Ad Vs. SP
Direct Marketing
Public Relations
• PR is an activity that fosters goodwill between an organization
and its publics, or stakeholders
• PR, managed effectively can be useful
• PR, managed poorly can be damaging
E.g. Microsoft funding to cut funds for the Justice Dept!
• This way, a double-edged sword
• More than any other tool, PR rebounds on you
• What are some major pluses with PR?
• Why PR?
• From consumer-centric organisation to stakeholder
Management e.g. Wal-Mart, Reliance
• PR it is that targets other stakeholders
• Credibility present
• Less Expensive
– If used effectively
– Like James Bond movies, for instance
– Microsoft does this brilliantly
• Can cut back on costly ad spending
– For instance, Great Lakes Institute of Management gets lots of
press while we are PR-shy
• Build company image
– Sony, Intel, GE
– Tatas are very effective at this e.g. recently JRD’s centenary year
• Can create positive buzz for the company
– Everyone is talking about you
– For instance, get a famous person as Chief Guest
– Similar to what Saarang does for IITM
• IMC is crucial
• Communication is vital, reaching out is harder and harder
• Integration key, else confusion
• We have just touched the tip of the iceberg here