Imc Unit 1 6 Notes.

EAST WEST
INSTITUTE OF TECHNOLOGY
DEPARTMENT
OF
MBA & RESEARCH CENTRE
INTEGRATED MARKETING
COMMUNICATION
SUBJEct CODe: 18MBAMM402
Integrated Marketing Communication– (18MBAMM402)
UNIT - 01
Introduction & Basic Concepts
Role of IMC in marketing process, IMC planning model, Marketing, and promotion
process model. Communication process, steps involved in developing IMC programme,
Effectiveness of marketing communications
Advertising: Purpose, Role, Functions, Types, Advertising Vs Marketing mix, Advertising
appeal in various stages of PLC
Meaning and definition:
IMC is defined as customer centric, data driven method of communicating with the
customers. IMC is the coordination and integration of all marketing communication tools,
avenues, functions, and sources within a company into a seamless program that maximizes
the impact on consumers and other end users at a minimal cost. Integrated Marketing
Communications is a simple concept. It ensures that all forms of communications and
messages are carefully linked together.
Reasons for the growing importance of IMC
• A shift of marketing – from media advertising to other forms of promotion particularly

consumer – and – trade oriented sales promotion.
• Less reliance on advertisement focused approaches
• A shift in marketplace power from manufacturers to retailers
• Rapid growth and development of database marketing
• Demand for greater accountability
• Rapid growth of internet and the nature of how companies do business,
Communicate & interact with consumers.
Prof. DILIP KUMAR H G, Assistant Professor, East West Institute of Technology, Bangalore. Page 2
Marketing and promotion process model
Marketing and promotion process model for the product and services has also been analyzed, so
that firms can make appropriate strategies to gain advantages. In order to introduce new product
in the market, business firms have to follow the product life cycle. Marketer has to make
campaign of the product that is in a mature stage of the product life cycle. Marketing and
Promotion Process Model is focused towards introducing the new product in the market, as it
assists the management to plan and develop marketing strategy.
marketing research is helpful in developing the marketing strategies in regard to product,

pricing, distribution and promotion decision. In order to make the promotion of product at the
maturity stage, marketing planning program development is the difficult task. Organizations
have to decide, which type of marketing and promotion activity is suitable in order to grab the
large part of customers.
In addition, marketing expert should have appropriate knowledge about the current trends
and culture in the external environment, so that the advertisement and taglines can be created as
per the culture and values of the target market, which is helpful to create positive impact. It is
difficult to identify the promotional program at the maturity stage of the product. In the maturity
stage, marketing expert has to take various promotional decisions in order remain the product in
the market for long period. Therefore, marketing expert has to frame different policies and
strategies in order to address the issues in making the marketing and promotional development
plan. Marketing research and development program is helpful in addressing the issues in making
promotional decisions.
Communication process:
Communication is the process of conveying information between two or more people. The
communication process is the steps we take in order to achieve a successful communication. A
sender is the party that sends a message.
A channel of communication must also be selected, which is the manner in which the message is
sent. Channels of communication include speaking, writing, video transmission, audio
transmission, electronic transmission through emails, text messages and faxes and even
nonverbal communication, such as body language. Lindsey also needs to know the target of her
communication. This party is called the receiver.
The receiver must be able to decode the message, which means mentally processing the message
into understanding. If you cannot decode, the message fails. For example, sending a message in
a foreign language that is not understood by the receiver probably will result in decoding failure.
Sometimes, a receiver will give the sender feedback, which is a message sent by the receiver
back to the sender. For example, a member of Lindsey's team may provide feedback in the form
of a question to clarify some information received in Lindsey's message.
IMC planning model:
Involves the process of planning, executing, evaluating & controlling the use of our various
promotional mix elements to effectively communicate with targeted audience, it provides
framework for developing, implementing and controlling our organization’s ‘IMC’ program.
Review of marketing plan: before launching our product we put in our minds that it will not be
easy to compete with big names in tea industry such as Lipton for example; there for we
understood that we must come up with something new, something different in-order to be
unique, special and to attract our needed customers and play it wisely with the world’s number
one Lipton.. Therefore, we had to understand our market situation: where we are (Now) and
where it tends to go (Future) and how it will tend to go there, some detailed steps had to take
place such as:
The Marketing Plan

A document that describes the overall marketing strategy and programs developed for a
company, product, or brand. The plan includes:
➢ To examine the overall marketing plan
➢ Role of advertising in promotion
➢ To do competitive analysis
➢ Assess the environmental influence
➢ Monitoring and evaluating the success of marketing activities.
IMC Program Situation
Analysis Internal Factors

➢ Assessment of the firm’s promotional organization and capabilities
➢ Review of the firm’s previous promotional programs
➢ Assessment of firm or brand image and implications for promotion
➢ Assessment of relative strengths and weaknesses of product/service.
External Factors
➢ Environmental analysis
➢ Competitive Analysis
➢ Customer Analysis
➢ Who buys our product or service?
➢ What factors influence the decision making process?
➢ Contact points where customers can be reached?
Budget determination
➢ Setting a tentative objective for marketing communication
➢ Allocating tentative budget, deciding on the budget strategy
➢ Calculating the cost of promotion activities, percentage of sales revenue to

Allocated towards promotional activities.
Developing integrated marketing communication program:
➢ Here the company will set the objectives and strategies for the different promotional tools
like advertising, promotion, personnel selling, direct marketing etc.
Integration and implementation of marketing communication strategies.
➢ Here the company will integrate the different marketing tools and create the overall
marketing plan and implement the plan in the market.
Monitor, evaluate, and control the promotional program.

➢ It is the last step in the process of IMC planning where they monitor on the implemented
process and take corrective action based on evaluation.
Steps involved in developing IMC programme
There are typically six steps in the IMC planning process. Each are important in their own right
and can be applied to practically any business or organization, no matter the size or industry.
While your plan might utilize each marketing communications function differently, the overall
idea remains the same.
Below are the major steps to keep in mind when developing your IMC strategy.
Step 1: Know your target audience

As a general rule, there is no “general audience”. You always want to communicate with a
specific audience to make the most effective use of your resources.
Segmenting specific audiences into groups based on characteristics will help you identify who
are most likely to purchase or utilize your products and services.
Step 2: Develop a situation analysis

Commonly referred to as a SWOT Analysis, this is basically a structured method of evaluating
the internal strengths and weaknesses, and external opportunities and threats that can impact
your brand. A situation analysis can provide much insight into both internal and external
conditions that can lead to a more effective marketing communications strategy.
Step 3: Determining marketing communication objectives

In this step, you basically want to document what you want to accomplish with your IMC
strategy. Objectives should be measurable if you truly want to map your campaign’s
effectiveness at the end of your plan’s term.
Step 4: Determining your budget

Having a realistic idea on what you have to work with is important, as it will shape the tactics
you develop in the next step. Once you determine your overall budget, you will want to come
back to this after completing step five to further refine your budget allocations.
Step 5: Strategies and tactics

Looking back at the objectives you created in step three, you will want to develop strategies
which are ideas on how you will accomplish those objectives. Tactics are specific actions on
how you plan to execute a strategy.
Step 6: Evaluation and measurement

Almost as important as the plan as a whole, you want to outline a method of how you will evaluate the
effectiveness of your IMC strategy. Sometimes elements of your plan will not work. It is important to
know what did or didn’t, try to understand why, and make note for future planning.
The more focused on how you will utilize your resources for promoting your business, the more
you will understand where you money is going and how it’s performing. An IMC strategy is
important for any business or organization.
Effectiveness of marketing communication
1. Measuring the Effectiveness of advertising.

2. Measuring the Effectiveness of sales promotion.
3. Measuring the Effectiveness of public relations.
4. Measuring the Effectiveness of Sponsorship.
5. Measuring the Effectiveness of other promotional tools.
Elements of marketing communication.

1. Advertising
2. Personal selling
3. Publicity.
4. Sales promotion
5. Directing marketing
6. Word of mouth
7. Online marketing
8. Public Relations.
Advertising vs marketing mix
BASIS FOR
COMPARISON MARKETING ADVERTISING
Meaning The activity of understanding Advertising is a part of market

the market conditions in order communication process which is
to identify the customer needs done with the aim of seeking
and creating such a product attention of the public towards a
that it sells itself. particular stuff.
Aspect Product, Price, Place, People, Promotion

Promotion, Process.
Term Long term Short Term
Scope Market Research, Promotion, Radio, Television, Newspaper,

Advertisement, Distribution, Magazines, Hoardings, Social
Sales, Public Relations, Media, Sponsorships, Posters.
Customer Satisfaction.
Importance More and more sales Creates Awareness
Focus on Creating market for the new or Grabbing the attention of the
existing product and building general public
brand image.
Advertising appeals at various stages of PLC:

Every product goes through a series of stages, namely the introduction, growth, maturity,
decline. After a period of development it is introduced or launched into the market; it gains
more and more customers as it grows; eventually the market stabilizes and the product becomes
mature; then after a period of time the product is overtaken by development and the introduction
of superior competitors, it goes into decline and is eventually withdrawn. However, most
products fail in the introduction phase. Others have very cyclical maturity phases where
declines see the product promoted to regain customers.
Thus, in this case, a suitable advertising and promotion campaign is required to be identified
and followed. Strategies for the differing stages of the PLC
Introduction stage of PLC

The need for immediate profit is not a pressure. The product is promoted to create awareness. If
the product has no or few competitors, a skimming price strategy is employed. Limited numbers
of product are available in few channels of distribution. Advertising differentiates the product.
Print ad of a Printer giving details about its specifications
Growth stage of PLC

Competitors are attracted into the market with very similar offerings. Products become more
profitable and companies form alliances, joint ventures and take each other over. Advertising
spend is high and focuses upon building brand. Market share tends to stabilise. Advertising
establishes participation with the marketplace.
Maturity stage of PLC

Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a
decreasing rate and then stabilize. Producers attempt to differentiate products and brands are
key to this. Price wars and intense competition occur. At this point, the market reaches
saturation. Producers begin to leave the market due to poor margins. Promotion becomes more
widespread and uses a greater variety of media. Advertising puts price ahead of the competition.
Decline stage of PLC

At this point, there is a downturn in the market. For example more innovative products are
introduced or consumer tastes have changed. There is intense price-cutting and many more
products are withdrawn from the market. Profits can be improved by reducing marketing spend
and cost cutting. Defensive advertising or for revitalization
Unit-02
Advertising Agency: Type of agencies, Services offered by various agencies, Criteria for
selecting the agencies and evaluation.
Advertising objectives and Budgeting: Goal setting – DAGMAR approach, various budgeting
methods used.
Definition:
An advertising agency often referred to as a creative agency or an ad agency is a business

dedicated to creating, planning, and handling advertising and sometimes other forms of
promotion and marketing for its clients. It may be an internal department or agency that
provides an outside point of view to the effort of selling the client's products or services, or an
outside firm. An agency can also handle overall marketing and branding strategies promotions
for its clients, which may include sales as well.
Typical ad agency clients include businesses and corporations, non-profit organizations and
private agencies. Agencies may be hired to produce television advertisements, radio
advertisements, online advertising, out-of-home advertising, mobile marketing, and AR
advertising, as part of an advertising campaign.
Types of agencies:
1. Full Service Agencies

➢ Large size agencies.
➢ Deals with all stages of advertisement such as copywriting, artwork, production of ads,
media planning etc.
➢ Different expert people for different departments.
➢ Starts work from gathering data and analyzing and ends on payment of bills to the media
people.
2. In house advertising agencies.

This type of agency is owned by the advertiser. Big organization prefers these types of agencies
which are in built and work only for them. it is as good as full service agencies. It performs
almost all functions that an outside full service dos.
3. Interactive advertising agency

➢ Modernized modes of communication are used.
➢ Uses online advertisements, sending personal messages on mobile phones, etc.
➢ The ads produced are interactive, having new concepts and very innovative.
4. Creative boutiques
➢ Small sized agencies with their own copywriters, directors, and creative people. No other
function is performed other than creating actual ads.
➢ The specialized creative functions include copy writing, artwork and production of
advertisement.
➢ Most of them convert into a full service agency or merge with other agencies to provide a
wide range of services.
➢ These are shop agencies that provides only creative functions and not full-service.
5. Specialist advertising agencies.

➢ Some agencies undertake advertising work only in certain areas. There are agencies that
specialize only in financial services.
➢ Buys place for advertise and sells it to the advertisers.
➢ Sells time in which advertisement will be placed.
➢ Schedules slots at different television channels and radio stations.
➢ Finally checks whether the ad has been placed at opted time and place or not.
Criteria for selecting and evaluating agencies:

➢ Years of experience: While selecting an advertising agency, it is advisable to look into the
number of years they have been in the industry. Not only does experience teach new things
but also helps in recognizing what the client is actually looking for, this helps in saving
both time and money
➢ Where is it located: World is now a global village and distance is no more a hurdle,
however if given a choice, it is always better to look for an advertising agency which
is located locally so that it is easy to establish an effective communication.
➢ Clientele: In order to establish confidence at the first phase, it’s wise to inquire about the
advertising agencies current and past clientele. You will also be able to find out the kind of
services they offer by looking into their past performances.
➢ Past performance: As mentioned above, looking into the advertising agencies‘past

performance gives you an idea about the way they work and the result, which is delivered,
accordingly you can bid for price and set a cost structure.
➢ Attitude & Approach: The initially stages of communication and inquiry will provide you a
rough idea about the ad agencies‘attitude. Since it is a creative field, therefore it is very
important for the ad agency to be flexible and keep a positive attitude.
➢ Techniques and skills: Try and look into their expertise and the services, which they have
rendered before. How successful an ad agency has been in the past does not always mean
they would be able to do justice for you as well. Try and find out the skills they have and
their forte and see whether it would match to your requirements.
➢ Cost: Cost and pricing forms a very important part of any marketing or promotional
activities. Make sure you take into consideration the total expenditure involved as well as
arrangements for dispersal of expenses. It’s better to discuss in advance how both the
parties would like the payment to be, either fixed cost on an annual basis or a monthly
payment on a flexible tenure.
➢ Applauds and recognition : If you are looking to play safe then it’s wise to hire an
advertising agency which is already recognized and is known to be delivering good
services, however if you are ready to experiment then sometimes small fish and
new players also deliver quality results.
Functions of advertising agencies:

1. Contacting clients
2. Creative function
3. Approval from client
4. Ad-Execution
5. Marketing function
6. Advertising planning
7. Developing and preparing advertising planning copy.
8. Media selection and media scheduling
9. Research function.
10. Accounting functions.
Specific objectives of advertising:
1. To increase Demand
2. To educate masses
3. To build goodwill
4. To reach customer left out of salesman
5. To sell new product
6. To build new brand
7. To attract and help middlemen
8. To remain the customers.
9. To inform about changes in marketing mix.
10. To enter new geographical area.
Factors determining Advertising objectives:

1. Stage in plc
2. Available finance
3. Level of competition
4. Marketing objectives
5. Nature of product
6. Market segmentation
7. Distribution strategy.
DAGMAR Approach:
DAGMAR is a marketing expression that stands for “Defining Advertising Goals
for Measured Advertising Results”. It is a marketing tool to compute the results of an
advertising campaign. DAGMAR attempts to guide customers through ACCA model.
According to this approach, every purchase encounters four steps; Awareness, Comprehension,
Conviction, and Action. DAGMAR method is an established technique of creating effective
advertising.
1. Awareness
▪ Awareness of the existence of a product or a service is needful before the purchase
behavior is expected. The fundamental task of advertising activity is to improve the
consumer awareness of the product.
▪ Once the consumer awareness has been provided to the target audience, it should not be
forsaken. The target audience tends to get distracted by other competing messages if they
are ignored.
▪ Awareness has to be created, developed, refined, and maintained according to the
characteristics of the market and the scenario of the organization at any given point of time.
▪ The objective is to create awareness about the product amongst the target audience.
2. Comprehension
▪ Awareness on its own is not sufficient to stimulate a purchase. Information and
understanding about the product and the organization are essential. This can be achieved by
providing information about the brand features.
▪ Example: In an attempt to persuade people to budge for a new toothpaste brand, it may be
necessary to compare the product with other toothpaste brands, and provide an additional
usage benefit, such as more effective than other toothpaste because it contains salt or that
this particular toothpaste is vegetarian toothpaste, which will, in turn, attract more
customers.
▪ The objective is to provide all the information about the product.
3. Conviction
▪ Conviction is the next step where the customer evaluates different products and plans to
buy the product. At this stage, a sense of conviction is established, and by creating interests
and preferences, customers are convinced that a certain product should be tried at the next
purchase.
▪ At this step, the job of the advertising activity is to mould the audience’s beliefs and
persuade them to buy it. This is often achieved through messages that convey the
superiority of the products over the others by flaunting the rewards or incentives for using
the product.
▪ Example: Thumbs up featured the incentive of social acceptance as “grown up”. It

implied that those who preferred other soft drinks were kids.
▪ The objective is to create a positive mental disposition to buy a product.
.
4. Action
▪ This is the final step, which involves the final purchase of the product. The objective is to
motivate the customer to buy the product.
Advertising budget:
An advertising budget is an estimate of a company's promotional expenditures over a certain

time period. More importantly, it is the money a company is willing to set aside to
accomplish its marketing objectives. When creating an advertising budget, a company must
weigh the value of spending an advertising dollar against the value of that dollar as
recognized revenue.
Various budgeting methods used:
There are several allocation methods used in developing a budget. The most common are listed
below:
➢ Percentage of Sales method
➢ Objective and Task method
➢ Competitive Parity method
➢ Market Share method
➢ Unit Sales method
➢ All Available Funds method
➢ Affordable method
It is important to notice that most of these methods are often combined in any number of ways,
depending on the situation. Because of this, these methods should not be seen as rigid but as
building blocks that can be combined, modified, or discarded as necessary. Remember, a
business must be flexible ready to change course, goals, and philosophy when the market
and the consumer demand such a change.
UNIT-03
Media planning: Developing Media plan, Problems encountered, Media Evaluation-Print,

Broadcast media, Support media in advertising.
Media strategy: Creativity, Elements of creative strategies and its implementation, Importance
of Headline and body copy.
➢ 1.Definition of media:
According to Philip Kotler, “The communication channels through which the message
moves from sender to receiver is called media”. The communication channels used in
advertising includes, Television, radio, printing press, outdoor advertising etc
➢ Definition of media planning:
According to George E. Belch, “media planning is the serious of decisions involved in
delivering the promotional message in most effective manner to the largest number of
potential customers at lowest cost”.
Media plan is a document describing Objectives, Strategy, Tactics, resource allocation,
media mix to be used in order to reach the target customers.
3.Media planning process
➢ Media Planning - A series of decisions involving the delivery of messages to audiences.

➢ Media Objectives - Goals to be attained by the media strategy and program.
➢ Media Strategy - Decisions on how the media objectives can be attained.

➢ Media - The various categories of delivery systems, including broadcast and print media.
➢ Broadcast Media - Either radio or television network or local station broadcasts. Print
Media - Publications such as newspapers and magazines.
➢ Media Vehicle - The specific message carrier, such as the Washington Post or 60 Minutes.
➢ Coverage - The potential audience that might receive the message through the vehicle.
➢ Reach - The actual number of individual audience members reached at least once by the
vehicle in a given period.
➢ Frequency - The number of times the receiver is exposed to vehicle in a specific time
period.
Problems encountered in media planning.
1. Insufficient information.
➢ Media plan requires lot of information about Target customers, Competitors, Media
strategies of competitors etc
2. Time pressure
➢ Some time environment changes are sudden and quick, sudden changes require
immediate decisions regarding advertisement.
➢ Example: Change in media strategy of our immediate competitor requires immediate
counter media strategy.
3. Difficulty in audience measurement.

➢ Audience measurement here refers to number of persons who are exposed to a
particular media
4. Difficulty in cost comparison.

It is difficult to compare the cost of different Medias as company pay the money based on
different criteria.
➢ Print-cost per word or square centimeter.
➢ Broadcast – cost per second
➢ Outdoor media- cost per sign board is known

Types of advertising media.
Print media:
➢ It includes printing advertisements in Newspapers, magazines, and other printed
surfaces such as posters and outdoor boards.
➢ Newspapers and Magazines are the majorly used print Medias.
➢ The importance of the print media can be declined in future days due to rise of mobile
technology and internet.
Broadcast media:
➢ When one talks of advertising the people first thinks about Television and Radio.
Television:
➢ Television is the ideal medium of advertising because of its ability to combine visual
Images, Sound, Motion, and Color.
Radio:
➢ Radio is a mass media that appeals to the ear and brain of listeners.
It ruled from 1920 to 1970
Support media.
1. out-of-Home Media
Out of home advertising [outdoor advertising] essentially any type of advertising that
reaches the consumer while he or she is outside the home.
2. Transit Advertising:
Advertising that appears inside and outside the public transportation vehicle, In waiting
areas, and at the stations and terminals is called as Transit Advertisement.
➢ Less Cost , High Exposure, High frequency
3. Promotional product marketing:
Promotional products such as pens, mugs, key rings, calendar and T-shirts etc are given in
order to market particular product. It involves posting messages and promotional items
outside where the people can see them.
4. Movie theater advertising:
Movie theater advertising is an effective medium for Advertising, its advertising recall
are 4 times greater than the ads placed in television.

5. Point of purchase media:
Point of purchase refers to advertising at the place and time of purchase.
6. Exhibition and trade fair
It is a huge gathering of manufacturers for the purpose of displaying, demonstrating
And booking orders for their latest product
Importance of media planning:

1. Optimum utilization of resources.
2. Helps in achieving advertising objectives
3. Selecting appropriate Media
4. Selection of optimum media mix
5. Helps in Allocating advertising budget
6. Ensures appropriate timing of advertising.
Media Evaluation
1. Evaluating Audience Exposure
Which of my media vehicle reached the large number of customers?
It may be tested by external auditing company or internal
2. Advertising ROI and Media Efficiency.
Return on investment, which means Cost of creating and running advertisement versus
The revenue generated.
3. Wear out:
The points where the advertising get tired and there is no response or less response than at
the
Launch is called wear out.
4. Media Optimization:
Advertisers want to know their money is being spent in the most efficient way and for
the greatest impact.
Creative Strategy:
“A creative Strategy is a policy or guiding principle that specifies the general nature and
Characteristics of message to be designed.”
Elements of Creative strategy:
1. Strategic Objectives:
2. Target Audience:
3. Product and its positioning:
4. Communication Medial
5. Advertising message
6. Creative style
Elements of Advertising copy.
1. Headlines:
➢ The words that occupies central or dominant positions in the ad form the head line
➢ It capture the maximum attention of the readers or viewers
➢ Headlines are generally typed in large fonts.
2. Sub-Heads
➢ Secondary heads are mostly larger than body copy but smaller than main headings.
➢ Sub heads can be visible within the body copy or below or above the headline
3. Body copy
➢ The main text of the print ad is called body copy
➢ It is the extension of headlines and secondary heads written in smaller fonts.
4. Catchy phrases
➢ A phrasal verb or idiom identified by its persistent pronouncement is called catchy phrase
➢ Example: Just Do It [Nike]
5. Logo and signatures.
➢ Logos and signatures are intended to be included in every advertisement of the firm.
Example: Sachin sign in Rorito gel pen ad
6. Closing idea
➢ The end or closing part of the ad-copy, it communicates the direction, information, and
Adequate stimulus to the target group to take action.
Example: Hurry up, rush, Offer valid for limited period only.
Classification of Headlines.
1. Benefits headline:
Headline in an advertisement that speaks of benefits of the product.
Example: “If one does not get the pimple free skin in 5 days, take the money back”
2. Information headline:
They will inform the reader about the unknown facts.
3. Proactive headline:
Companies use proactive headlines mainly to provoke the readers’ curiosity by rolling their
Thought process.
Example: Philips TV “One will never go back to ordinary TV”
4. Humor headline:
It is used in order to evoke the humor of the consumers.
Example: “pen is mightier than sword”
5. Question headline:
A question headline encourages the readers by asking questions so that they can search
For the answer in the body copy.
Example: “Are you looking for a better kitchen”
6. Command headline:
A command headline orders the reader in a way that might seen negative and impossible.
Example: “cut cost, Replace your inkjet printer”.
UNIT-04
Direct Marketing
Direct Marketing: Features, Functions, Growth, Advantages/ Disadvantages, And

Direct Marketing Strategies. Promotion: Meaning, Importance, tools used,
Conventional/unconventional, drawbacks, pushpull strategies, Co-operative advertising,
Integration with advertising and publicity Public relation/ Publicity:- Meaning, Objectives,
tools of public relations, Public relationstrategies, Goals of publicity, Corporate
Advertising – Role, Types, Limitations, PR Vs Publicity.
Definition of direct marketing

Direct marketing is a promotional method that involves presenting information about your
company, product, or service to your target customer without the use of an advertising
intermediary. It is a targeted form of marketing that presents information of potential interest
to a consumer that has been determined to be a likely buyer.
For example, subscribers to teen magazines might be presented with Face book ads for acne
medication, which, based on their age, they are likely to need. On the other hand, members of
the United States Equestrian Federation might all receive an email promotion offering special
pricing on horse gear. Current residents of Wilmington, Delaware might receive a flyer
announcing the arrival of Wegmans supermarket to their area. Conversely, people in
Wilmington, Ohio would not.
Advantages of Direct Marketing

There is a range of advantages of direct marketing, these are summarised below:
1. Builds Loyalty
A well-run direct marketing campaign can build brand loyalty by continual brand messaging
on direct marketing channels. This is particularly effective where multi-channel messaging is
used, e.g. email, direct mail, SMS, etc. all in one consistent joined-up coherent campaign.
2. Direct
As the name suggests, this technique is direct. This engagement directly with the customer
eliminates price hikes due to “middlemen” and provides a direct approach. This has benefits
as the organisation is totally in charge of the contact and can apply in-house CRM techniques
to effectively manage the relationship.
3. Effective
Direct marketing, when managed well, has a long-standing reputation for high profitability
and great ROI.
4. Monitorable
Tracking and monitoring can be put in place to effectively analyse the results of a campaign.
Strengths can be accentuated and weaknesses eliminated with a view that through continual
tweaks/enhancements campaign ROI and metrics will only continue to grow in the medium-
long term.
5. Personalised and Targeted
Direct marketing can be personalised based on the actual experience of working with a
customer and/or socio-economic factors. Even for prospects, personalisation can be achieved
through techniques such as customer segmentation and data profiling.
6. Reduced Competitor Awareness
Competitors will have a much lower level of awareness with direct marketing as it is direct to
the customer. Other marketing techniques such as TV, radio, internet advertising, etc. are
public and open to counter-moves by competition.
Disadvantages of Direct Marketing

There are some disadvantages of direct marketing, these are summarized below:
Environmental Impact
Some of the direct marketing channels are associated with having an environmental impact
(most noticeably direct mail). This can be reduced by targeted direct mail campaigns and
using environmentally friendly materials. This marketing technique is no worse than many
indirect marketing methods (e.g. billboard posters).
Image Impact
It is a common perception that image can be adversely affected by some direct marketing
campaigns (direct mail and telemarketing in particular). Whilst this is true for poorly managed
campaigns, the effects can be avoided by ensuring contacts are opted-in and happy to receive
marketing messages (which is best practice anyway!).
Limited Reach
This is a “perceived” disadvantage of direct marketing to many. The limited reach is because
mass broadcast techniques (e.g. TV, radio, internet advertising, etc.) are not used. Although
it’s true that the reach is less, the reach achieved is more specific and targeted. Reach can be
extended by buying high-quality targeted opt-in additional contacts from reputable sources
such as Baker Goodchild.
Privacy Intrusion
The main drawback of direct marketing is its links with privacy intrusion (this is particularly
related to telemarketing and direct mail). This is definitely the case with badly managed
campaigns and links closely to the image impact above. Once again, with true opt-in consent
and best practice campaign management, privacy would not be an issue.
Direct marketing Advertising
It involves direct selling to It involves mass selling

individuals.[identification of customer is
known by name and address]
Building personal relationship is easy in Personal relationship cannot be formed in mass

direct marketing. advertising.
Direct marketing copy focus on ‘you’ and Advertising copy focus on ‘ME’ and ‘It’.
‘benefits’.
Here the marketplace is the medium Here the market place is Retail outlet from where
through which the customer order the the product or services are purchased.
product.
i.e mail, telephone , internet.
The product is managed and controlled by Here marketer may lose control over the product as
the marketer until it delivers to customers it enters the distribution channel.
The main function of direct marketing is to The main function of advertising is to create
stimulate order and queries awareness, Brand image etc.
Difference between direct marketing and advertisin
Features of direct marketing. [Ingredients]
1. Targeting: This includes selecting the Recipients.
2. Interaction: Sending message and receiving feedback
3. Control: Evaluating outcomes and correct the deviation
4. Continuty: It includes Customer retention, continues product up gradation.
Reasons for growth of direct marketing
Direct marketing is the distribution of products, information, and promotional benefits to
members of the target market through interactive communication vehicles in a manner that
allows customer response to be measured.
Some limitations of direct marketing are:

1. Advancement of technology
2. Popularity of phone
3. Increased use of credit card
4. Change in consumer lifestyle
5. Negative aspect of retailing
Strategies and tools of direct marketing:

1. Mail order marketing
2. Telemarketing
3. Direct selling
4. Database marketing
5. SMS Marketing
6. Social media marketing.
Promotion:
Definition: Promotions refer to the entire set of activities, which communicate the
product, brand, or service to the user. The idea is to make people aware, attract, and
induce to buy the product, in preference over others.
Description: There are several types of promotions. Above the line promotions
include advertising, press releases, consumer promotions (schemes, discounts,
contests), while below the line include trade discounts, freebies, incentiv e trips, awards
and so on. Sales promotion is a part of the overall promotion effort.
Benefits/Importance of promotion
Promoting your brand will help you in many different ways:
• Increase brand awareness
• Provide appropriate information
• Increase Customer Traffic
• Build sales and profits
Not only will these but promotions also help your company to introduce products
easily in the ever-so-competitive market.
1) Increasing brand awareness:
Promotions help in creating brand awareness. With the help of various media like the
television, billboards, radio or local newspaper news, you can spread across
information about your brand and company, which helps people to find out more
about you and look into your products and make purchases.
2) Segment Identification
If your promotional and marketing strategy is loosely structured, it might not be
successful in targeting the “right” audiences. Having a full-proof and well-thought-
out promotional strategy and marketing plan can help you identify different segm ents
of consumers in the market and offer suitable solutions for your clients.
3) Increasing customer traffic
Promotion also helps in increasing customer traffic. The more you promote your
brand, the more will the customers know about you and your company and the more
will they be interested in your products. Promotion can be done even by giving out
free samples which work wonders for customers! They try your product and
ultimately, come to you and make purchases.
While promotional strategies are very much important, marketers and businesses
must take into account a few aspects of their marketing mix plan. It is essential that
businesses make use of the right media tool to target their customers. These days,
when social media is the most effective tool on the online platform, promotional
strategies need to extend beyond radio, television, and print.
Push-pull strategies
What are Push and Pull Strategies?

Simply put, a push strategy is to push a product at a customer, while a pull strategy pulls a
customer towards a product. Push strategy is a quick way to move a customer from awareness
to purchase, while pull strategy is about creating an ongoing relationship with the brand. Both
serve a purpose in moving the customer along the journey from awareness to purchase,
however pull strategies tend to be more successful at building brand ambassadors.
While some companies decide to adopt one or the other it is important to find a
complementary balance between the two. Choosing your marketing strategy and tactics
should be done carefully and with a thorough understanding of your business, current brand
awareness, and target audience. For example, launching a new unknown product would
require more push than an established brand.
Push and pull tactics within the larger strategy should work together seamlessly to move the
customer through their journey. For example, the impact of a flyer in the mail is lost without a
website for the customer to visit to learn more. Modern consumers are savvy and require
several interactions with a company and product before engaging.
Publicity
Publicity has been defined as:
1. William J. Stanton:
“Publicity is any promotional communication regarding an organization and/or its products
where the message is not paid for by the organization benefiting from it.”
2. Philip Kotler:
“Non-personal stimulation of demand for the product or service, or business unit by placing
commercially significant news about it in public medium or obtaining favorable presentation
of it upon radio, television, or stage that is not paid for by the sponsor.”
Types of Publicity
Social media. Platforms such as Face book, Instagram, and Twitter allow you to connect with
your potential customers. A strong social media presence keeps your brand in your followers'
minds. Rather than trying to make a single post that goes viral, focus on building an interested
audience in a slow and steady fashion.
Cultural relevance. A clever social media post, viral video, catchy slogan, popular
commercial, or attention-grabbing public comment can put your business in the cultural
spotlight. When that happens, you get free publicity anytime someone references your cultural
moment.
Product placement. Send free products or offer free services to public figures, bloggers, or
other media personalities. Your products may end up being featured in their blogs, social
media posts, or other public content.
Partnerships. Working with other brands or businesses that have a larger audience can allow
you to get your brand in front of a wider audience and generate publicity. Approach potential
partners about collaborations, product swaps, or offering your products and services as a free
bonus to some of their customers.
Promotional swag. Branded items such as calendars, pens, notepads, tote bags, and phone
cases can put your brand name and logo in front of a wide audience. However, you have no
guarantee that your target audience will be the one seeing this swag. Think of swag as a fun
bonus for customers, rather than a guaranteed way to generate publicity, and budget
accordingly.
Characteristics of Publicity:
Key characteristics of publicity have been briefly described in following part:
1. Meaning:
Publicity is not a paid form of mass communication that involves getting favorable response of
buyers by placing commercially significant news in mass media. It involves obtaining
favorable presentation upon radio, newspapers, television, or stage that is not paid for by the
sponsor.
2. Non-paid Form:
Publicity is not a paid form of communication. It is not directly paid by producer. However, it
involves various indirect costs. For example, a firm needs some amount for arranging function,
calling press conference, inviting outstanding personalities, decorating of stage, other related
costs, etc.
3. Various Media:
Mostly, publicity can be carried via newspapers, magazines, radio, or television. For example,
in case a product is launched by popular personality in a grand function, the mass media like
newspapers, television, radio, magazines, etc., will definitely publicize the event
4. Objectives:
Sales promotion is undertaken for a wide variety of purposes. They may include promotion of
new product, pollution control, and special achievements of employees, publicizing new
policies, or increase in sales. It is primarily concerns with publishing or highlighting
company’s activities and products. It is targeted to build company’s image. In a long run, it can
contribute to increase sales.
5. Control of Producer:
Company has no control over publicity in terms of message, time, frequency, information, and
medium. It comes through mass media like radio, newspapers, television, etc. It is given
independently by the third party. It is presented as a news rather than propaganda
6. Credibility/Social Significance:
Publicity has high degree of credibility or reliability as it comes from mass media
independently. It is given as news for social interest. It has more social significance compared
to other means of market promotion.
7. Part of Public Relations:

Publicity is a part of broad public relations efforts and activities. Public relations includes
improving, establishing, and maintaining direct relations with all publics. Publicity can help
improve public relations.
8. Costs:
Publicity can be done at much lower cost than advertising. Company needs to spend a little
amount to get the event or function publicized.
9. Effect:
Publicity message is more likely to be read, viewed, heard, and reacted by audience. It has a
high degree of believability as it is given by the third party.
10. Repetition:
Frequency or repetition of publicity in mass media depends upon its social significance or the
values for news. Mostly, it appears only once.
Importance of Publicity:
Like advertising and sales promotion, sales can be increased by publicity, too. Publicity carries
more credibility compared to advertisement. Publicity is cost free; it does not involve direct
cost. Publicity offers many benefits to the producers and distributors.
Importance of publicity can be made clear from the below stated points:
1. Publicity is an effective medium to disseminate message to the mass with more credibility.
People have more trust on news given by publicity.
2. The credibility level of publicity is much higher than advertising and other means of market
promotion. People express more trust on what the third party independently says. It appears
directly through newspapers, magazines, television, or radio by the third party. It is free from
bias.
3. It provides more information as the valuable information is free from space and time
constraints. Similarly, publicity takes place immediately. No need to wait for time or space in
mass media. It enjoys priority.
4. The firm is not required to pay for publicity. The indirect costs related to publicity are much
lower than other means of promotion.
5. It is a part of public relations. It is free from exaggeration; it carries more information about
company. It is more trustable. It helps establish public relations.
6. Generally, publicity covers the varied information. It normally involves name of company,
its goods and services, history, outstanding achievements, and other similar issues. The
knowledge is more complete compared to advertisement.
7. Publicity directly helps intermediaries and sale persons. Their tasks become easy. Publicity
speaks a lot about products on behalf of intermediaries and salesmen. Sellers are not required
to provide more information to convince the buyers.
8. It is suitable to those companies, which cannot effort the expensive ways to promote the
product.
9. Publicity increases credit or fame of the company. Publicity on company’s assistance in

relief operations during flood, earthquake, draught, and other natural calamities highlights its
name and social contribution in mass media. People hold high esteem to this company.
10. Publicity can be used by non-commercial organizations/institutes like universities,

hospitals, associations of blinds or handicaps, and other social and missionary organizations.
They can publicize their noble works by the medium of publicity.
Corporate advertising
What is corporate advertising?
Corporate advertising is the advertising done for an entire institution/ company/ organization
and not for individual brands or products. This kind of activity is an extension of the Public
Relations (PR) activity done by the company to improve its image in the minds of the public
and increase its goodwill, which is an extremely important intangible asset.
Instead of advertising for its individual brands and products, the corporate advertises to build
its own image. We know many companies across the globe, which have numerous brands
under them. HUL, P&G, Volkswagen, General motors’ are some examples. All of these
companies also take part in corporate branding, wherein instead of branding only one
particular product or brand, they brand the corporate itself.
These companies invest in improving the overall perception of the company itself. They want
to prove that the company is ethical and all its brands and products are secondary. The primary
focus for these companies are their customers, which is what they try to prove through
corporate advertising.
The main objective of corporate advertising is to improve the image of the company and make
it a more desirable workplace at times and also a desirable corporation to buy from.
Role of corporate advertising
four types of corporate advertising commonly used by organizations are:

1. PR Ad
2. institutionally Ad
3. corporate Identity Ad
4. recruitment Ad
Public Relations Ad: It is typically used to improve the company’s relations with labor,
government, customers, or even suppliers. Thus, when a company sponsors arts events,
programmers on television or charitable activities, they are engaging in PR.
PR Ad is used when a company wishes to communicate directly with one of its important
publics to express its feelings or to enhance its point of view to that particular audience. They
are designed to enhance a company’s general community citizenship and to create public
goodwill.
Institutional Ad: otherwise called corporate advertisement

The promotional message aimed at creating an image,
enhancing reputation, building goodwill, or advocating an idea or the philosophy of
an organization, instead of sales promotion. When employed by an organization

to market itself (instead of its products), it is called corporate advertising.
Institutional advertising is marketing designed to promote a company rather than a specific
good or service. It can be designed to make the public more aware of a company or to
improve the reputation and image of an existing company. Depending on the company, this
can be a form of brand advertising.
Corporate Identity Ad: this is embarked upon on rare occasion such as when organization
decides to change its name, logo, address, trademark, or corporate signature or in case of a
merger. When such occasions occur, there is need for Corporate Identity Advertising, this is
to communicate the change to the publics.
Recruitment Ad: This is used when the prime objective is to attract employment
applications. Recruitment advertising, also known as Recruitment
Communications and Recruitment Agency,
Includes all communications used by an organization to attract talent to work within it.
Recruitment advertisements may be the first impression of a company for many people, and
the first impression the firm makes goes a long way to determining interest in the job opening
being advertised. Recruitment advertisements typically have a uniform layout and contain the
following elements:
Limitations of corporate advertising.
1. It limits the amount of self-promotion that is possible.

Most forms of cooperative advertising are designed to primarily promote the lead brand with
the strongest outreach or following. Now if that is your business, you are setup in a good
position. For most small businesses, however, that means they are ceding most of the time or
space in the advertisement to the other brands, manufacturers, or distributors involved. In
some instances, the only promotion they might receive is a name, address, and phone number
at the end of the advertisement.
2. It requires additional administrative work.

The amount of time it takes to process the paperwork involved with cooperative advertising
often reduces the value it is able to provide. Companies taking advantage of available co-op
dollars must provide evidence that they are spending the money in a manner that is
authorized. Small businesses might even be required to use specific vendors or media outlets
for the final product, even if that is a venue they don’t think will be effective.
3. It may require specific audience targeting.

Some cooperative advertising opportunities are only available when a business is willing to
target a specific audience demographic. If demographic is not within the primary audience
for the business involved, then the advertising revenues being spent may have a minimal
impact. For some small businesses, the cost to reach their preferred audience, with the
inclusion of co-op dollars, may be several thousand dollars higher than if they simply agree
to follow the money trail.
4. It may provide the wrong messaging to certain customers.

Cooperative advertising may create messages, which go against the mission or vision of one
of the companies involved. This is often seen when small businesses want to promote low
product costs, while the provider of co-op dollars might wish to present a high-end image to
upscale consumers. When the wrong message is directed to the consumer base, it may affect
the total number of future customers, which may access the brand later on.
5. It may create conflicts in the design of the advertising.

There may be different objectives in play for the different companies involved in the
cooperative advertising effort. Those objectives may be different enough that only one
company would benefit from the release of the marketing materials. In circumstances like
this, tension is placed on the relationship between each party, which makes it more difficult
to do business with one another in the future. Some co-op deals can even lead to the
cancellation of vendor or manufacturing contracts.
6. It can result in funding issues that may affect certain companies.

In some co-op advertising relationships, one company may be asked to front the capital for
the marketing efforts. In return, the other company provides ongoing payments to
compensate for their share of the expenses. Franchisees may be asked to pay a specific
percentage of their sales in an advertising royalty to gain access to co-op advertising where
they may have zero control over the creative. If the structures are not equal from the very
start, a contract for cooperative advertising may only benefit the company with the better
financial structure in the arrangement.
7. It may be limited to one specific medium.

Many co-op advertising arrangements are limited to a medium that has been previously
approved by the other brand. For a small business, that might mean they are stuck with the
higher costs of television advertising, even though they feel like radio is a better option for
their message. Even though there may be tangible reasons why one specific medium is
preferred over others, the uniqueness of each business can be limited by the need to stick
with approved resources.
UNIT-05
Monitoring, Evaluation and control
Monitoring, Evaluation and control: Measurement in advertising, various methods used for
evaluation, Pre-testing, Post testing.
Measuring/Evaluating Advertising effectives refers to evaluation of advertising results against

the pre-established standards of performance and objectives. Advertising objectives can be
sales objectives or communication objectives. In evaluation process it is estimated up to what
extent advertising campaign has been able to achieve its sales or communication objectives.
Methods of evaluation of advertising.
1. Message evaluation:
Message evaluation refers to testing the effectiveness of message [how much the message
reached to the customers]
Methods of message evaluation:
1. Concept testing: It aimed at the actual content of the ad and impact that content has on
potential customer
2. Recall test:
3. Recognition test
4. Attitude and opinion test
2. Behavioral Evaluation
This mechanism deals with evaluating the apparent customer response to the different
advertising efforts. Consumer behavior includes enquiries, store visit, and actual buying.
The company can evaluate consumer-buying behavior based on overall sales.
Types of Test
Following are the types of test applied in advertisement evaluation:
• Pre-Testing
• Concurrent Testing
• Post Testing
1. Pre-Testing
Pre-Testing follows the universal law "Prevention is better than cure". Advertising can be
pretested at several points in the creative development process. Pre-Testing helps the
advertiser to make a final go or no go decision about finished or nearly finished
advertisement. Pre-Testing method refer to testing the potentiality of a communication
message or ad-copy before printing, broadcasting, or telecasting. Following are the types of
pre-testing methods:
A. Qualitative Methods of Pre-Testing
• Focus Group: Focus group involves exposing the ad to a group of 8 to 12 respondents.

Focus groups are used with surprising frequency for making final go or no go decision. A
moderator facilitates the discussion and walk s the group through a series of issues that
are outlined in discussion guide.
• In-depth Interview: In-depth interview involve one on one discussion with respondents.
Interviews are very effective when a researcher has a good idea of critical issues but does
not have a sense of the kind of responses one will get. This method can be effectively
used to generate new ad concepts and ideas.
• Projective Techniques: In this technique, the respondent is instructed to project himself

into the situation and verbalize the thoughts. Projective technique can be very effective
for evaluating ad concepts and for generating new ad concepts. However, it cannot be
used for making final decisions.
B. Quantitative Methods of Pre-Testing
• Checklist Method: Checklist method is used to test the effectiveness of ad-copy. The
purpose of this method is to ensure that all elements of the ad-copy are included with due
importance in the advertisement. As it is a pre-test method any omitted element of ad can be
included in the copy before release of the advertisement.
• Consumer Jury Method: This method involves the exposure of alternative

advertisements to a sample of jury or prospects. This test is designed to learn from a typical
group of prospective customers. Advertisements which are unpublished are presented before
the consumer jury either in personal interviews or group interviews and their reactions are
observed and responses are recorded.
• Sales Area Test: Under this method advertising campaign is run in the markets selected
for testing purposes. The impact of the campaign is evaluated by actual sales in the selected
markets. The market with high sales is considered the best market for effective sales
campaign. In other markets, suitable changes are made in the advertising campaign.
• Questionnaire Method: It is a list of questions related to an experiment. The draft of an

advertisement along with some relevant questions is to be sent to a group of target consumers
or advertising experts. Their opinions are collected and analyzed to find out whether the
proposed advertisement is satisfactory or not.
• Recall Test: Under this method, advertising copies are shown to a group of prospects.
After few minutes, they are asked to recall and reproduce them. This method is used to find
out how far the advertisements are impressive.
• Reaction Test: The potential effect of an advertisement is judged with the help of certain
instruments, which measure heartbeats, blood pressure, pupil dilution etc. Their reactions
reveal the psychological or nervous effects of advertising.
2. Concurrent Testing
Concurrent testing is evaluated throughout the whole advertisement execution process. Tests
are conducted while audience is exposed to different type of media. Following are the types
of concurrent testing methods:
• Consumer Diaries: Diaries are provided to a selected customers. They are also informed
to record the details of advertisements they watch, listen, or read. The diaries are collected
periodically. The result obtained from such a survey reveals the effectiveness of
advertisement.
• Co-incidental Surveys: This method is also called as co-incidental telephone method.

Under this method, samples of customers are selected and calls are made at the time of
broadcast of the advertisement programme. The data obtained and analyzed will give a
picture about the effectiveness of an advertisement.
• Electronic Devices: Now day’s electronic devices are widely used to measure the
effectiveness of an advertisement. They are mainly used in broadcast media. These are auto
meters, track electronic units etc.
3. Post Testing
Post testing is done to know- to what extent the advertising objectives are achieved.
Following are the types of post testing methods:
➢ Recognition Test: Recognition test involves the ability of viewers to correctly identify ad,
brand, or message they previously exposed to. The types of recognition test are:
➢ Starch Test - The Starch test is applied only to print ads that have already run. The
interviewer shows each respondent a magazine or newspaper containing the ads being
tested. For each ad, the interviewer asks the respondents to reply to ad related questions.
➢ Bruzzone Test - The Brazened test is conducted through mail surveys. Questionnaires
containing frames and audio scripts from television commercials are sent to respondents
and respondents are asked whether they recognize the ad and brand.
➢ Recall or Impact Test: The recall test is designed to measure the impression of readers or
viewers of the advertisement. If a reader has a favorable impression of the advertisement,
he will certainly retain something of the advertisement. The measures of interest would be
obtained by interviewing the readers, viewers, or listeners, days after the advertisement or
commercial is appeared in the newspaper, or on TV Interviewer asks the readers or
viewers to answer some ad related questions, and in response to the question asked, the
reader reveals the accuracy and depth of his impression.
UNIT-6
Different advertising perspectives
International Advertising: Global environment in advertising, Decision areas in international

advertising Internet advertising: Meaning, Components, Advantages and Limitations, Types of
Internet advertising Industrial advertising: B 2 B Communication, Special issues in Industrial
selling.
International Advertising:
International advertising entails dissemination of a commercial message to target audiences in

more than one country. Target audiences differ from country to country in terms of how they
perceive or interpret symbols or stimuli; respond to humor or emotional appeals, as well as in
levels of literacy and languages spoken. How the advertising function is organized also varies.
In some cases, multinational firms centralize advertising decisions and budgets and use the
same or a limited number of agencies worldwide. In other cases, budgets are decentralized and
placed in the hands of local subsidiaries, resulting in greater use of local advertising agencies.
Global environment in advertising:
1] Economic Environment
2] Cultural Environment
3] Demographic Environment
4] Political/Legal Environment
1] Economic Environment: A country’s economic condition reflects the buying behavior of the
country. Consumers generally have higher level of income in well-developed countries like USA,
Japan, and Canada etc. so the company can choose these countries for advertising their products.
2] Cultural Environment: culture is another important aspect of international marketing. Cultural

variables such as Language, customs, Attitude, lifestyle, Values, Tastes and preferences play a
major role in international marketing.
3] Demographic Environment: Demographic factors like Age, Education, Income, Household

size, Employment rate, occupation and literacy rate etc affect the marketing environment.
4] Political/Legal Environment: The Company should aware of political and legal environment
before entering to that country. Political Environment influences the business in various levels.
Decision areas in international advertising:

1] Global advertising objectives
2] Targeting Issues
3] Positioning the global brand
4] Setting the Budget
5] Executing the International campaign.
Advantages and limitations os International advertising:
Advantages:
1. Reduces cost: If a company is manufacturing a good in larger quantities it automatically
reduces its cost. Therefore, if companies operate in international market it gains cost competency
in local and global market.
2. Can deal with seasonal fluctuations: A company manufacturing winter wears will have a
market demand for a limited time if it is operating in just one market. So to deal with such kind of
situations companies need to go globally to create demand for their products.
3. Increases profit: more sales equals to more profit. Therefore, it is beneficial for companies to
enter International markets
4. Earns foreign exchange: operating in other countries helps a company earn foreign exchange
for the country.
5. Employment: it helps create employment home country and host country.
Dis-advantages
1. Different culture: It is not necessary that the company would find same culture in both home
country and host country.
2. War: if in any case a war breaks in host country then the company will be at loss.
3. Infrastructure: infrastructure in the host country may not be that developed which might
create barriers for the company.
4. Government rules: rules of the government n host country might not be very supporting.
5. Marketing mix: Company might have to develop a totally different marketing mix for its
product in host country than in home country, which will incur cost.
Internet advertising:
Online advertising, also known as online marketing, Internet advertising, digital
advertising or web advertising, is a form of marketing and advertising which uses the Internet to
deliver promotional marketing messages to consumers. Many consumers find online advertising
disruptive and have increasingly turned to ad blocking for a variety of reasons.
Components of internet advertising:
➢ Search engine optimization (SEO)

➢ Pay-per-click advertising (PPC)
➢ Web design.
➢ Content marketing.
➢ Social media marketing.
➢ Email marketing.
Advantages of internet marketing:
➢ Convenience and Quick Service.
➢ Low Cost for Operations.
➢ Easy to Measure and Track Results.
➢ Demographic Targeting.
➢ Global Marketing.
➢ Ability to Multitask.
➢ 24/7 Marketing.
➢ Automated, Tech-Savvy Marketing.
Dis-Advantages of internet marketing:
1. Measurement problems
2. Web-Snarl
3. Clutter
4. Privacy issues
5. Irritations.
Industrial Advertising
Company advertising its products and services to the companies which actually use the same as raw
materials.
The role of B2B advertising is to
1] Create awareness
2] Increasing sales efficiency
3] Increasing Personal selling
4] Supporting cannel members
Special issues in industrial selling:

1] market related issues:
A. Size of the market is small
B. Geographically concentrated
C. High Competition
2] Product related issues: In B2B selling the product must be according to the specifications
given by the customer company. Because it is used as the component part to produce finished
product.
3] Price Related issues: The products are sold to consumers based on the MRP by the retailers in
B2C market, where as in B2B selling the price depends on Competitive bidding and price
negotiations.
4] Promotional related issues: When it comes to industrial selling the company should use the
tools like Trade journals, sales promotion activity, Trade shows, Catalogs, which normally costs
more.
5] Channel related isssues: In B2C, there is multi-level distribution channel, which consists of
wholesalers, Retailers, Middlemen etc..
However, in B2B, the company should use its OWN sales/marketing personnel.
6] Buying Behavior related issues:

Buying behavior in B2B marketing is more depends on Product Specifications, Product quality,
Availability, timely supply, Acceptable payment rather than social and Psychological needs.

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EAST WEST

Meaning and definition:

Reasons for the growing importance of IMC

• A shift of marketing – from media advertising to other forms of promotion particularly

Marketing and promotion process model

assists the management to plan and develop marketing strategy.

marketing research is helpful in developing the marketing strategies in regard to product,

IMC planning model:

The Marketing Plan

IMC Program Situation

Analysis Internal Factors

➢ Setting a tentative objective for marketing communication

➢ Allocating tentative budget, deciding on the budget strategy

➢ Calculating the cost of promotion activities, percentage of sales revenue to

Developing integrated marketing communication program:

Integration and implementation of marketing communication strategies.

Monitor, evaluate, and control the promotional program.

Steps involved in developing IMC programme

Step 1: Know your target audience

Step 2: Develop a situation analysis

Step 3: Determining marketing communication objectives

Step 4: Determining your budget

Step 5: Strategies and tactics

Step 6: Evaluation and measurement

Effectiveness of marketing communication

1. Measuring the Effectiveness of advertising.

Elements of marketing communication.

Advertising vs marketing mix

Meaning The activity of understanding Advertising is a part of market

Aspect Product, Price, Place, People, Promotion

Term Long term Short Term

Scope Market Research, Promotion, Radio, Television, Newspaper,

Importance More and more sales Creates Awareness

Advertising appeals at various stages of PLC:

Introduction stage of PLC

Growth stage of PLC

Maturity stage of PLC

Decline stage of PLC

An advertising agency often referred to as a creative agency or an ad agency is a business

1. Full Service Agencies

2. In house advertising agencies.

3. Interactive advertising agency

5. Specialist advertising agencies.

Criteria for selecting and evaluating agencies:

➢ Past performance: As mentioned above, looking into the advertising agencies‘past

Functions of advertising agencies:

Specific objectives of advertising:

Factors determining Advertising objectives:

▪ Example: Thumbs up featured the incentive of social acceptance as “grown up”. It

An advertising budget is an estimate of a company's promotional expenditures over a certain

Media planning: Developing Media plan, Problems encountered, Media Evaluation-Print,

➢ Media Planning - A series of decisions involving the delivery of messages to audiences.

➢ Media Strategy - Decisions on how the media objectives can be attained.

3. Difficulty in audience measurement.

4. Difficulty in cost comparison.

➢ Outdoor media- cost per sign board is known

are 4 times greater than the ads placed in television.

Importance of media planning:

Elements of Creative strategy: