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THE SHIFT

Fragmented
PROMOTIONS & IMC T
O

Integrated Marketing Communications

PROMOTIONS & INTEGRATED
MARKETING COMMUNICATION

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Integrated marketing communications (IMC) Let’s understand “WHY” IMC ?

■ The primary idea behind an IMC strategy is to create a seamless ■ Business model “ changed”
experience for consumers across different aspects of the ■ Manufacturing Selling
marketing mix. ■ From a manufacturer-dominated market to a retailer-
■ The brand’s core image and messaging are reinforced as each dominated, consumer-controlled market
marketing communication channel works together as parts of a ■ Marketing function evolution was needed- Budget was
unified whole rather than in isolation. allocated
■ Reaching out
■ Effectively
■ Efficiently

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Marketing function “evolved (Marketing ) Communication Mix

■ Reaching out
■ How to say it
■ How to get the desired result
■ Evaluation

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More and more Ad agencies are offering “One SHOP” Main steps in developing an effective
solutions communication

■ Many advertising agencies are also developing expertise in direct

marketing, sales promotion, event sponsorship, the Internet, and ■ 1) Identify target audience
other areas so that they can meet all their clients’ integrated ■ 2) Determine the communication objectives
■ 3) Designing the message
marketing communication needs— and, of course, survive.
■ 4) Select the communication channels
■ Such as WPP Group PLC, Omnicom Group Inc., Publicis Groupe, ■ 5) Allocate the total promotion budget
Interpublic Group of companies Inc. and Dentsu Inc.. ■ 6) Decide on the promotion mix
■ 7) Measure the promotion’s results
■ 8) Manage and coordinate the total marketing process

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Effective Communication-Identify target Cognitive response ad- put something in the consumer s’
audience, and then decide mind

■ what to say ,
■ how to say it,
■ when to say it,
■ where to say it

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Determine the communication objectives Affective response ad- Change consumer’s attitude

The marketer could be seeking

■ Cognitive response-- The advertiser might want to put

something in the consumer s’ mind

■ Affective response----Change consumer’s attitude

■ Behavioral response---get the consumer to act

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Behavioral response ad- get the consumer to act Behavioral response ad- get the consumer to act

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Behavioral response ad- get the consumer to act Behavioral response ad- get the consumer to act

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Behavioral response ad- get the consumer to act Behavioral response ad- get the consumer to act

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Behavioral response ad- get the consumer to act Behavioral response ad- get the consumer to act

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Behavioral response ad- get the consumer to act Behavioral response ad- get the consumer to act

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Behavioral response ad- get the consumer to act Behavioral response ad- get the consumer to act

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The five M’s of Advertising on which an advertiser has to

take decisions:

Sales Promotions

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Marketers are also changing the ways they allocate their

What is Sales Promotions
promotional dollars

■A sales promotion is any undertaking by an

■ Marketers expect their promotional dollars to generate immediate
sales and are demanding more accountability from their agencies
organization designed to increase sales or
encourage the use or trial of a product or service.
■ Sales promotions take many different forms, but
they all focus on persuading a target audience
to become customers of a business.

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Why Sales Promotions
■ Scoop prospective customers into their marketing funnel
and introduce their product or service.
■ Persuade those customers to purchase an ancillary
product or service.
■ Provide a quick burst of sales activity.
■ Sustain customers' interest.
■ Engender customer loyalty.
■ Remain competitive.
RESEARCH AFFIRMS THE PROMOTIONAL ADVANTAGE
■ 94 percent said they hunt for a promotion or deal.
■ 88 percent said that finding one would spur them to make
their first purchase from a business.
■ 81 percent said that a promotion or discount remains top-
of-mind throughout their purchase journey.
■ 67 percent said that a discount or promotion persuaded
them to make a purchase they had not planned to make.
Source-A RetailMeNot study of more than 1,000 adult online shoppers
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Some data ( US) on Sales promotions
■ In 1980, advertising expenditures in the United States were $53
billion, and $49 billion was spent on sales promotion techniques
such as product samples, coupons, contests, sweepstakes,
premiums, rebates, and allowances and discounts to retailers
■ By 2002, nearly $240 billion was spent on local and national
advertising, while spending on sales promotion programs targeted
toward consumers and retailers increased to more than $250
billion
■ Promotional expenditures in international markets have grown as
well. Advertising expenditures outside the United States increased
from $55 billion in 1980 to nearly $214 billion by 2002
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Some data ( US) on Sales promotions
■ Both foreign and domestic companies spend billions more on
sales promotion, personal selling, direct marketing, event
sponsorships, and public relations, all important parts of a firm’s
marketing communications program.
■ In addition to facing the decline in audience size for many media,
marketers are facing the problem of consumers’ being less
responsive to traditional advertising
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Push or Pull promotional strategy Consumer Sales Promotions

■ Companies often use a combination of push and pull strategies,

with the emphasis changing as the product moves through its life
cycle.

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Two types of Sales Promotions Trade Sales Promotion

Brand
A. Consumer Promotions
Retailer

B. Trade Promotions- Dealers/ Distributors/Retailers

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Customer Promotion Objectives

Objective Typical Programming

I. Long-run (relationship
building) Sweepstakes, contests, tie-ins
A. Awareness enhancement Sponsorships
B. Image enhancement
II. Short-run (transactional)
A. Current customers Volume discounts/special “value”
1. Buy more packages
2. Be more loyal frequent buyer programs ■ Consumer And Trade Promotions Are Short-term Marketing Strategies.
3. Buy now Rebates, coupons
B. Occasional customer (deal
prone; brand switchers)
Coupons, displays, rebates
Capture next purchase
C. Noncustomers Trial sizes, sampling
Trial

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Trade Promotion Objectives Consumer Promotion- Brand

Objective Typical Programming

Transactional: increase Volume allowances

Financing terms
stocking levels Discount/price cuts
Slotting allowances

Advertising allowances
Display allowances
Transactional: increase Premiums
sales efforts Contests
Sales force incentives (not all dealers
allow this)
Relationship building Free goods

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Consumer Promotion Consumer Promotion

FMCG brand
FMCG brand

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Consumer Promotion Consumer Promotion

QSR brand 16-42 Health e commerce 16-44

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Consumer Promotion Impacts of Promotion (cont)

■ Retailers pass through less than 100% of

trade deals
■ Advertised promotions can result in increased
store traffic
■ Promotions affect sales in complementary
and competitive categories
Travel Agency

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Impacts of Promotion

■ Temporary retail price reductions substantially increase sales

■ Higher market share brands are less deal elastic
■ The frequency of deals changes the consumer’s reference price
■ The greater the frequency of deals, the lower the height of the
deal “spike”
■Types of Consumer Sales Promotions

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Free samples Cashback promotions

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Buy One , Get one ( BOGO) free promotions Lifestyle discounts

■ Lifestyle discounts are those that apply to a particular

profession, age group, or demographic.—usually one
associated with an ID. They commonly available for:
• Teachers
• Students
• Veterans
• Seniors

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Vouchers and coupons

Lifestyle discounts- for teachers and armed forces

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Loyalty program promotions

Flash sales and discounts

■ A flash sale creates a sense of urgency among customer base to

buy now.
■ A flash sale once or twice a year.
■ Or, two, a set schedule each month/ quarter so that people anticipate
the event and prepared to make purchases on short notice.

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Joint PROMOTIONS BRANDED GIFTS OR BUNDLES

■ Joint sales promotion

■ Or horizontal co-operative sales promotion
■ Or cross promotion
■ Or umbrella sales promotion
With intra-company brands or with those of another company to
increase sales at low cost.

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Referral discounts
Contests

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■ https://youtu.be/_rKDoI90NXI?si=wULDv_jyFT1rBCww
■ https://www.youtube.com/watch?v=5x1Mz9PEz00
■ Amazon | Wardrobe Refresh Sale
■ https://www.youtube.com/watch?v=Q9YnuRjzOiM
■ https://www.youtube.com/watch?v=OzQQSSqvVrc
■ Big bazaar exchange ad
■ https://www.youtube.com/watch?v=KLDM0pE8KVs
■ Max independence day offer ad
■ Flipkart video ad
■ https://www.youtube.com/watch?v=QEL7GaoIGEo
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■ https://youtu.be/bdA7y5ByR7U
■ Samsung festival sale
■ https://www.youtube.com/watch?v=kPFjee-Aco8
■ Domino Diwali offer ad
■ Myntra ad Diwali
■ https://www.youtube.com/watch?v=8HBN3SUhXZw
■ https://www.youtube.com/watch?v=ez-w5-OyJ58
■ Amazon Diwali 2022
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Festive time Sales Promotions in India
■In India, the festive starting from Ganesh
Chaturthi and continuing till Diwali accounts
for 30-45 % of annual sales for most
consumer facing companies
■ Through events, promotions, and other activities,
the brand reminds consumers of its role in their
lives leading to greater awareness, recall
engagement, and loyalty.
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Festive Sales promotions this time of the year Oct 2023
■ Big Billion days by Flipkart
■ Great Indian Festival by Amazon
■ All major offline retailers promotions- single and
multi brand
■ Banks- ICICI, AXIS, SBI, HDFC, Kotak mahindra-
credit/debit cards offer
■ Almost 100 million visits on amazon in first 48 hrs
■ Real estate companies- big time offers
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Festival promotions

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