Advertising and Sales Promotion

MODULE 1

Introduction to Integrated Marketing

Communication

FOR CLASS DISCUSSION PURPOSES ONLY

 Introduction
It is important for organizations to promote their
goods and services well among the end-users not only
to beat contenders but also survive in the long run,
because the promotion creates and increases awareness
of products and services among the consumers and
eventually leads high sales growth, revenue and
survival of the business.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Definition of Integrated Marketing Communication

In simple form, the integrated marketing

communication can be defined as the integration of all
the forms of communication and messages, so that the
marketing organization can create an impactful
promotional impact on their target and prospective
customer groups.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 IMC and Marketing Mix
To understand integrated marketing communication,
let us first discussed about the promotion with the help
of marketing mix.
When the marketer collectively uses all the tools or
elements of promotional mix to promote the goods and
services is termed as integrated marketing
communication.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Marketing Mix
Marketing mix is a set of tools which is used by the
marketer to (for) satisfying the need and wants of the
customers’. It mainly includes; Product; Price; Place
and Promotion.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Promotion
Promotion is an activity of marketing through which
the marketer try to promote their goods and services
among the prospective group of customers.
The promotional mix of an organization includes
various elements through which the products are
promoted among the consumers.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 The Communication Process
In general communication is a process of sharing idea, thoughts, message
and suggestion by one person to another person, which involves following
main elements :

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 The Communication Process
• Idea/ Message: the idea or message is called the subject matter in the
communication process, because without the subject matter the process
of communication cannot be initiated.
• Sender: the person who initiate the process of communication is called
sender. Sender usually send the message to the receiver.
• Encoding: is the process of converting the message into meaningful
symbols is called encoding. Here the sender converts the message into
words, picture, symbol or any other form, which could be easily
understandable for the receiver. This element of communication is very
much important for the both the sender and receiver.
https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 The Communication Process
• Medium: medium refers to the channels or methods through which the
sender send or pass the message to the receiver.
• Decoding: the process of understanding the message from the side of
receiver is called decoding.
• Receiver: the person who receive the message send by the sender is
called receiver.
• Feedback: the response of the receiver on the message of sender is
called feedback.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Promotional Mix
The promotion mix or element of marketing mix is concerned with
activities that are commenced to communicate with customers and
distribution channels to enhance the sales of the firm. These activities
mainly includes:
1. Advertising
2. Sales Promotion
3. Personal selling
4. Publicity/Public Relation

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Promotional Mix
1. Advertising - defined as any paid form of non-personal
communication about an organization, product, service, or idea by an
identified sponsor. The paid aspect of this definition reflects the fact that
the space or time for an advertising message generally must be bought.
2. Sales Promotion - defined as those marketing activities that provide
extra value or incentives to the sales force, the distributors, or the
ultimate consumer and can stimulate immediate sales.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Promotional Mix
3. Personal selling - a form of person-to-person communication in which a
seller attempts to assist and/or persuade prospective buyers to purchase the
company’s product or service or to act on an idea.
This interaction gives the marketer communication flexibility; the seller can
see or hear the potential buyer’s reactions and modify the message accordingly.
4. Publicity - refers to non-personal communications regarding an
organization, product, service, or idea not directly paid for or run under
identified sponsorship.
It usually comes in the form of a news story, editorial, or announcement
about an organization and/or its products and services.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Factors in determining Promotional Mix
Type of Product: Type of product plays an important role in deciding on
promotion mix. Product can be categorized in terms of branded products,
non-branded products, necessity products, luxury products, new products,
etc. All these types of products need different promotional tools. For
example, advertising is suitable for the branded and popular products.
Personal selling may be fit for non-branded products. Advertising,
personal selling, sales promotion and publicity – all four tools – are used
for a newly launched product to get a rapid consumer acceptance.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Factors in determining Promotional Mix
Use of Product: Product may be industrial product, consumable and
necessity product, or may be luxurious product that affects selection of
promotion tools and media. For example, advertising and sales promotion
techniques are widely used for consumer goods while personal selling is
used for industrial goods.
Complexity of Product: Product complexity affects selection of
promotional tools. Personal selling is more effective for complex,
technical, risky, and newly developed products as they need personal
explanation and observation. On the other end, advertising is more
suitable for simple and easy-handled products.
https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Factors in determining Promotional Mix
Purchase Quantity and Frequency: Company should also consider
purchase frequency and purchase quantity while deciding on promotion
mix. Generally, for frequently purchase product, advertising is used, and
for infrequently purchase product, personal selling and sales promotion
are preferred. Personal selling and advertising are used for heavy users
and light users respectively
Type of Market: Type of market or consumer characteristics determine
the form of promotion mix. Education, location, income, personality
characteristics, knowledge, bargaining capacity, profession, age, sex, etc.,
are the important factors that affect company’s promotion strategy.
https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Factors in determining Promotional Mix
Fund Available for Market Promotion: Financial capacity of company
is a vital factor affecting promotion mix. Advertising through television,
radio, newspapers and magazines is too costly to bear by financially poor
companies while personal selling and sales promotion are comparatively
cheaper tools. Even, the company may opt for publicity by highlighting
certain commercially significant events.
Level of Competition: Promotional efforts are designed according to
type and intensity of competition. All promotional tools are aimed at
protecting company’s interest against competition. Level of promotional
efforts and selection of promotional tools depend on level of competition.
https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Factors in determining Promotional Mix
Size of Market: Naturally, in case of a limited market, personal selling is
more effective. When market is wide with a large number of buyers,
advertising is preferable. Place is also an important issue. Type of
message, language of message, type of sales promotion tools, etc.,
depend on geographical areas.
Stage of Product Life Cycle: Product passes through four stages of its
life cycle. Each stage poses different threats and opportunities. Each stage
needs separate marketing strategies. Each of the promotional tools has
got different degree of suitability with stages of product life cycle.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY
 Factors in determining Promotional Mix
Promotional Objectives: It is the prime factor affecting promotional
mix. Different objectives can be achieved by using different tools of
promotional mix. If company’s objective is to inform a large number of
buyers, advertising is advisable. If company wants to convince limited
consumers, it may go for personal selling. Even, when company wants to
influence buyers during specific season or occasion, the sales promotion
can be used. Some companies use publicity to create or improve brand
image and goodwill in the market.

https://ycmou.ac.in/media/publication/ycmou_book/SNP_YB_099.pdf
FOR CLASS DISCUSSION PURPOSES ONLY