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Vijay Prakash Anand

Chapter 1

By

Vijay Prakash Anand

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"Half the money I spend on

advertising is wasted, and the

problem is I do not know which half."

Lord Leverhulme,

British founder of Unilever and Philanthropist

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"Unless your campaign has a

big idea, it will pass like

a ship in the night"

David Ogilvy

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For a business not to advertise islike winking at a girl in the dark.

You know what you are doing

but no one else does.

Stuart H. Britt

US advertising consultant

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Promotion

Promotion is the coordination of all the

efforts, the company undertakes to aware

and persuade the consumers

to buy goods and services

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Vijay Prakash Anand

6 Ms Model

for Communications Planning1. Market

2. Mission

3. Message

1. Media

2. Money

3. Measurement

MSTRATEGY

IMPLEMENTATION

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Communication Process

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Communication Vehicles

Two Way With time lag in

response

Broadcast One WayMessage

Mass

Addressable/Customised

Television

Magazine

Salesperson

RadioNewspapers

Two Way Instant response

Web

Direct

Infomercials

Catalogue

E-mail

Telemarketing

Direct Mail

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Marketing Mix

Develop a good product - Product

Attractive Pricing Price

Accessibility Place

Communicate Effectively Promotion

Cohesive Marketing Strategy

(Effective Marketing Communications)

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BuildBrand Equity

Reach

Target Markets

IMC

Brand Equity - Intangible asset of added value /goodwill99

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Promotion

Advertising

Public Relations

Direct Marketing

Sales Promotion

Personal Selling

InternetMarketing

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Evolution

1980s

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Mass-Media

AdvertisingDirect

Marketing

Public

Relations

PersonalSelling

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Evolution

IMCIntegrated Marketing

Communications

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Marketing Revolution

Traditional media advertising too expensive and

less cost effective; Movement to lower cost,

more targeted communications tools

Shift in marketplace power from manufacturers

to retailers

Database marketing

Greater accountability from advertising agencies

Internet

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Advantage IMC

Synergy among promotional tools

Avoid duplication

Develop more efficient and effective

marketing communications program

One of the easiest way to maximize the return on

investment in marketing and promotion

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Advantage IMC

Adapting to a changing environment

particularly with respect to consumers,

technology and media Satellite Channels

Internet

E-Commerce

Fragmented media

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Advantage IMC

Decline in the audience size for many

media

Consumers less responsive to traditional

advertising

Consumers tired of being bombarded by

sales messages

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American Association ofAdvertising Agencies

IMC

recognises the added value of a comprehensive

plan that evaluates the strategic roles of -Advertising, Direct Response, Sales Promotion

and Public Relations

and combine those principles to provideclarity, consistency and

maximum communications impact

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IMC

Don Schultz

All Sources of brand and company contact

that a customer or prospect has with a

product or service

Big Pictureapproach to planning marketing and promotion

programmes and coordinating the various communication

functions.

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IMCPackage Design

Publicity

Sales Promotions

Websites

PO P D isplays

Type of

Stores

Advertisements

Direct Marketing

2020

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Promotion

Advertising

Public Relations

Direct Marketing

Sales Promotion

Personal Selling

InternetMarketing

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Advertising

Any paid form ofnon personalpresentation

and promotion of ideas, goods or services

by an identified sponsor

Print & Broadcast Ads, Directories, Billboards, Brochure &

Booklets, Audio Visual Material, Display Signs, POP Display

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Advertising

Cost effective method for communicating

with large audiences

Can be used to create brand images;

Ability to strike a responsive chord

Attracts consumer attention and can helpgenerate sales

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Advertising Objectives

To generate immediate response or

action from the consumer

To develop awareness or a positive image

for its product or service over a longer

period

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Advertising To ConsumerMarkets

National Advertising to inform or remind;

to create or reinforce its image

Retail / Local Advertising

Primary Vs. Selective Demand Advertising

Gold, Diamond, Steel, Milk, Egg

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Advertising toBusiness & Professional Markets

Business to Business Advertising Machinery, Office Supplies,Computers

Professional Advertising Doctors, Lawyers, Engineers, Professors

Trade Advertising Wholesalers, Distributors and Retailers

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Indian AdvertisingIndustry

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AD BUDGETS

Ad spend in Rs CrAd spend of

% of sales

2003-04 2004-05 2003-04 2004-05

Hind. Lever 759.09 835.98 7.51 8.42ITC 265.72 220.53 4.15 2.90

Ranbaxy Lab 182.26 201.72 5.01 5.44

Tata Motors 123.60 172.37 0.96 1.01

Dabur 154.95 171.79 14.31 14.01

Hero Honda 124.46 147.48 2.13 1.99Bajaj Auto 129.32 143.87 2.71 2.50

Colgate

Palmolive147.65 136.84 15.74 14.23

Reckitt Benck 102.17 124.41 16.21 16.43

Nestle 136.12 121.26 6.36 5.44ICICI Bank 68.68 116.26 0.76 1.24

Reliance 220.64 114.56 0.43 0.17

Glaxo Smith 97.92 101.45 12.30 11.78

Britannia

Industries114.66 101.09 7.96 6.37

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Top 10 Advertising Agencies in IndiaEconomic Times - Band Equity Agency Reckoner

2010Ranking Company Name Website

1 Ogilvy and Mather www.ogilvy.com

2 James Walter

Thompson

www.jwt.com

3 Lowe Lintas www.lowelintas.in

4 Mc Cann Erickson www.mccannworldgroup.co

m5 Mudra India www.mudra.com

6 Leo Burnett www.leoburnett.com

7 DDB Mudra www.mudra.com

8 Draft FCB Ulka www.draftfcb.com

9 Redifussion YR www.rediffusionyr.com

10 Contract www.icontract.in2929 Vijay Prakash Anand

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Direct Marketing

Organisations communicate directly with

target customers to generate a response

and/or a transaction

Direct Mail, Mail Order, Database Marketing,

Telemarketing, Catalogues, Electronic Shopping,TV

Shopping, E mail and direct response ads through Direct

Mail, the internet and various broadcast and print media

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Direct Marketing

Amway

Dell

Aquaguard

Tupperware

Avon

Teleshoppe

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Interactive/Internet

MarketingInteractive Media through

Internet, CD-ROMs, Kiosks and Interactive TV;

allow for a back and forth flow of

information, whereby users can participate

in and modify the form and content of the

info they receive in real time

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Interactive/Internet

MarketingInternet is a promotional medium

Internet is a medium that

can be used to execute all the elements of the

promotional mix

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Sales Promotion

A variety of short term incentives

to encourage trial or purchase

of a product or service

Consumer

Oriented

Trade

Oriented

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Sales Promotion

Consumer-oriented sales promotion

Targeted to the ultimate user

Contests, Gifts, Fairs & Trade Shows, Demos, Discounts, Low interest

financing, Lotteries

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Sales Promotion

Trade-oriented sales promotion

Targeted toward marketing intermediaries

Promotional and Merchandising Allowances,

Price Deals, Sales Contests

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Publicity / PublicRelations

Publicity refers to nonpersonal

communications regarding an organisation,

product, service or idea not directly paid for

or run under identified sponsorship

News story, Editorial or announcement about an organisation

and/or its product or services through news releases, press

conferences, feature article, photos, films and videos

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Publicity / Public

Relations Consumers less skeptical toward favourable

info

Low Cost

Not always under the control of the

organisation and is sometimes unfavourable

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Public Relations

The Management function

which evaluates public attitudes,

identifies the policies and procedures of an

individual or organisation with the

public interest and executes a programme of

action to earn public understanding and

acceptance

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Public Relations

A variety of programmes systematically

designed and distributedto promote or

protect a companys image or products

Broader objective than publicity

Press Kits, Seminars, Speeches, Publications, Lobbying,

Comopany Magazine, Events, Sponsorships,

Donations, Annual Reports

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Personal Selling

Face to face interaction

with one or more prospective purchasers

for the purpose of making presentations,

answering questions and procuring orders

More immediate and precise feedback

Sales presentation, Sales meeting, Fairs and Trade Shows,

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Promotional Management

Coordinating the promotional mix elements

with balancing of advantages and

disadvantages of each,

to develop a controlled, integrated

programme of

effective marketing communications

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Factors InfluencingPromotional Management

Type of product

Target market

Buyers decision process

Stage of the product life cycle

Channels of distribution

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Thank You

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