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 ADVERTISING AND PROMOTION IN BUSINESS

Advertising and Promotion in Business

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  • ADVERTISING

    AND PROMOTION

    IN BUSINESS

  • No. Topic Page No

    1. Introduction 3

    Task-1

    2. 1.1 Marketing Process. 4

    3. 1.2 Advertising and promotion industry organized.

    5

    4. 1.3Advertising regulation.

    6

    5. 1.4 .Current Trends in Advertising and Promotion.

    6

    Task-2

    6. 2.1 Integrated Marketing Communication. 8

    7. 2.2 Apple's Branding Strategy. 10

    8. 2.3 The creative aspects of advertising. 11

    9. 2.4 Important points of advertising agency. 12

    Task-3

    10. 3.1- Below-the-line promotion. 14

    11. 3.2- Below The Line (BTL) Promotional Techniques. 15

    Task-4

    12. 4.1- Integrated promotional strategy budget. 19

    13. 4.2- Highlight the necessary process for the formulation of an

    organizational.

    20

    14. 4.3- Integration of promotional techniques. 22

    15. 4.4- Measuring the Effectiveness of Your Advertising Campaign 23

    16. Conclusion

    24

    17. Reference & Bibliography 25

  • Introduction

    Advertising or advertizing in business is a form of marketing communication used to

    encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a

    specific group) to take or continue to take some action. Most commonly, the desired result is to

    drive consumer behavior with respect to a commercial offering, although political and ideological

    advertising is also common. This type of work belongs to a category called affective labor.

    In Latin, ad vertere means "to turn toward". The purpose of advertising may also be to reassure

    employees or shareholders that a company is viable or successful. Advertising messages are

    usually paid for by sponsors and viewed via various old media; including mass media such as

    newspaper, magazines, television advertisement, radio advertisement, outdoor

    advertising or direct mail; or new media such as blogs, websites or text messages.

    The emergence of advertising is closely connected with the emergence of mass media

    The result has been a tremendous revolution in the shopping experience

    Because of widespread advertising, modern consumers enter a store with a wealth of

    information about alternative products, styles, qualities, and prices

    This has changed the ways that firms market products

    In turn, the development of sophisticated advertising has altered

    structure of markets

    nature of firms

  • TASK 1

    1.1Marketing

    Marketing is an objective discipline that involves the research, creation, pricing, testing, and

    distribution of a product or service. Marketing involves analyzing the competition by researching

    their pricing, products, where they sell, and age, race, gender, and other characteristics of their

    customers. A small business uses market research to test ideas and products on potential customers

    and to get feedback on the products or service. Market research also discovers what price

    consumers would pay for a proposed product or service, where they would purchase it, and how

    often they would use it.

    Advertising

    Advertising is paying to get your message to potential customers. Unlike public relations,

    advertising lets you control your message. A classic advertising strategy includes demonstrating a

    need or a problem to your potential customer; offering a solution to help fill that need or solve the

    problem; and showing how your product or service does that. Good advertising sells the benefits

    of a product or service, rather than simply discuss the product or service.

    Marketing Communications Process

    It is important to understand the process of Marketing Communications. The process is as

    follows: Sender, Encoding, Transfer Mechanism, Feedback, Response and Decoding.

    The SENDER is typically the company that produces the product.

    ENCODING involves communicating the message in understandable terms for the

    consumer. In some companies, this person is identified as the Marketing Manager.

    TRANSFER MECHANISM is the medium that will be used to transfer the message.

    DECODING is how the customer interprets the message.

    RESPONSE is how the customer reacts to the message. Will the customer purchase the

    product?

    FEEDBACK measures how successful the advertising campaign was.

  • Example of a Marketing Communications Strategy:

    SENDER Clothing manufacturer

    ENCODINGMarketing Manager at the clothing manufacturer

    TRANSFERMECHANISMTelevision ad

    DECODING Customer sees the television ad and keeps it in mind

    RESPONSE Customer goes to the store and purchases the new product (item of

    clothing)

    FEEDBACK Information that customers are responding positively to the message

    (Chris Hackley,2006)

    1.2. Advertising and promotion industry organized

    Industrial marketing (or business to business marketing) is the marketing of goods and services

    by one business to another. Industrial goods are those an industry uses to produce an end product

    from one or more raw materials.

    Industrial or Business to Business Marketing

    An organization seeks to split the work between the two firms based on an evaluation

    of each firm's capabilities.

    A sales representative makes an appointment with an organization that employs 22

    people. He demonstrates a photocopier/fax/printer to the office administrator. After

    discussing a proposal, the business owner signs a contract to obtain the machine on a

    fully maintained rental and consumables basis, with an upgrade after 2 years.

    Main features of the B2B selling process are:

    Marketing is one-to-one in nature. It is relatively easy for the seller to identify a

    prospective customer and build a face-to-face relationship.

    Highly professional and trained people in buying processes are involved. In many

    cases, two or three decision makers must approve a purchase plan.

  • Often the buying or selling process is complex, and includes many stages (for example,

    request for proposal, request for tender, selection process, awarding of tender, contract

    negotiations, and signing of final contract).

    Selling activities involve long processes of prospecting, qualifying, wooing, making

    representations, preparing tenders, developing strategies, and contract negotiations.

    1.3. Advertising regulation

    Advertising regulation refers to the laws and rules defining the ways in which products can be

    advertised in a particular region. Rules can define a wide number of different aspects, such as

    placement, timing, and content. In the United States, false advertising and health-related ads are

    regulated the most. Many communities have their own rules, particularly for outdoor advertising.

    Sweden and Norway prohibit domestic advertising that targets children. Some European countries

    dont allow sponsorship of childrens programs, no advertisement can be aimed at children under

    the age of twelve, and there can be no advertisements five minutes before or after a childrens

    program is aired. In the United Kingdom advertising of tobacco on television, billboards or at

    sporting events is banned. Similarly alcohol advertisers in the United Kingdom are not allowed to

    discuss in a campaign the relative benefits of drinking, in most instances therefore choosing to

    focus around the brand image and associative benefits instead of those aligned with consumption.

    1.4 .Current Trends in Advertising and Promotion

    Advertising and promotion are done by almost every company that there is. This is a way for them

    to bring in customers and boost sales. There are many different trends that are being used in

    advertising and promotion. Some stores like to promote a buy on get one free sale. This kind of

    advertising will bring in many sales. Another trend is used by companies that sell big products.

    They advertise no sales tax for a while.

  • ICT CAN HAVE A POSITIVE EFFECT ON ORGANIZATIONS

    There are three main areas in which organizations are affected by the use of ICT, communications,

    information management, and security. The three areas have considerable overlap.

    Communication: By using ICT has brought a number of benefits to organizations, such

    as: Cost savings by using e.g. VoIP instead of normal telephone, email / messaging instead

    of post, video conferencing instead of traveling to meetings, e-commerce web sites instead

    of sales catalogues. Organizations with good communications can respond to changes

    quickly. This may mean better customer relations, an improved supply chain for goods and

    services, faster development of new products to meet a new opportunity, etc.

    Information management: Organizations can benefit from using ICT for information

    management. e.g. Data mining of customer information to produce lists for targeted

    advertising. Improved stock control, resulting in less wastage, better cash flow,

    etc.Mangers are better informed and will have more reliable and up-to-date information on

    which to base their decisions.

    NEGATIVE IMPACTS OF ICT ON ORGANIZATIONS

    Cost: the cost of using ICT may cause a number of problems for organisations. A lot of

    ICT hardware and software is expensive, both to purchase and to maintain. An ICT system

    usually requires specialist staff to run it and there is also the challenge of keeping up with

    ever-changing technology. These extra costs should be offset by the poitive effects of using

    ICT, but if an organisation gets its cost-benefit analysis wrong it may lose money.

    Competition: this is usually thought of as being a good thing, but for some organisations

    being exposed to greater competition can be a problem. If the organisation is competing

    for customers, donations, or other means of funding nationally or even internationally, they

    may lose out to other organisations that can offer the same service for less money.

  • TASK 2

    2.1. Integrated Marketing Communication

    Integrated Marketing Communication (IMC) involves the idea that a firms promotional efforts

    should be coordinated to achieve the best combined effects of the firms efforts. Resources are

    allocated to achieve those outcomes that the firm values the most.

    Promotion involves a number of tools we can use to increase demand for our The most well-known

    component of promotion is advertising, but we can also use tools such as the following:

    Public relations (the firms staff provides information to the media in the hopes of getting

    coverage). This strategy has benefits (it is often less expensive and media coverage is usually more

    credible than advertising) but it also entails a risk in that we cant control what the media will

    say. Note that this is particularly a useful tool for small and growing businessesespecially those

    that make a product which is inherently interesting to the audience.

    Trade promotion. Here, the firm offers retailers and wholesalers temporary discounts, which

    may or may not be passed on to the consumer, to stimulate sales.

    Sales promotion. Consumers are given either price discounts, coupons, or rebates.

    Personal selling. Sales people either make cold calls on potential customers and/or respond to

    inquiries.

    In-store displays. Firms often pay a great deal of money to have their goods displayed

    prominently in the store. More desirable display spaces include: end of an aisle, free-standing

    displays, and near the check-out counter. Occasionally, a representative may display the product.

    ADVERTISING EFFECTIVENESS AND EVALUATION

    The effectiveness of advertising is a highly controversial topic. Research suggests that in many

    cases advertising leads to a relatively modest increase in sales. One study suggests, for example,

    that when a firm increases its advertising spending by 1%, sales go up by 0.05%. (The same

    research found that, in contrast, if prices are lowered by 1%, sales tend to increase by 2%). In

    general, it appears that advertising is more effective in selling durable goods (e.g., stereo systems,

  • cars, refrigerators, and furniture) than for non-durable goods (e.g., restaurant meals, candy bars,

    toilet paper, and bottled water). Also, advertising appears to be more effective for new

    products. This suggests that advertising is probably most effective for providing information

    (rather than persuading people). Note that many advertising agencies make a large part of their

    money on commissions on advertising sold. Thus, they have a vested interest in selling as much

    advertising as possible, and may strongly advise clients to spend excessive amounts on advertising.

    Research suggests that advertising effectiveness follows a sort of S- shaped curve:

    Very small amounts of advertising are too small to truly register with consumers. At the medium

    level, advertising may be effective. However, above a certain level (labeled saturation point on

    the chart), additional adverting appears to have a limited effect. (This is comparable to the notion

    of diminishing returns to scale encountered in economics).

    There are several potential ways to measure advertising effectiveness. Two main categories

    include:

    Field based studies. These studies look at what happens with real consumers in real life. Thus,

    for example, we can examine what happens to sales of a companys products when the firm

    increases advertising. Unfortunately, this is often a misleading way to measure advertising impact

    because we live in a messy world where other factors influence sales as well. For example, a

    soft drink firm could conclude that there is very little correlation between advertising and sales

    because another, much more powerful factor is at work: temperature. That is, the firm may find

    that although a great deal of advertising is done in the winter, sales are greater in summer months

  • because people drink more soft drinks in hot weather. Note that the choice of brand of soft drink

    purchased in the summer may very well be influenced by advertising heard at other times.

    2.2. Apple's Branding Strategy

    Apple Inc. uses the Apple brand to compete across several highly competitive markets. Apple's

    brand has evolved as it has expanded its range of products and services. Originally starting in the

    late 1970s with desktop computers and then laptops in the 1990s, it took over 20 years before the

    company expanded into its first major new product area with the iPod in 2001, followed by iPhone

    in 2007 and iPad in 2010.

    In the early decades, Apple's brand was very much that of a challenger, bringing easy to use

    computers to consumers and small businesses in a way that as focused on the needs, individuality,

    and style of ordinary people, rather than the conformity and technical mandates of big business.

    Apple's brand position has evolved, but today's brand is still consistent with these early promises.

    Apple's core competence remains delivering exceptional experience through superb user

    interfaces. The company's product strategy is based around this, with the iPhone (with its touch

    screen "gestures" that are re-used on the iPad), Mac, iCloud, iTunes, and the Apps Store all playing

    key roles.

    Starting with a major re-vitalisation of the Apple brand when the iPod was launched in 2001, Apple

    has worked hard to migrate its brand and its product strategy in close harmony towards today's

    position.

  • Apple Expands Its Retail Presence to Strengthen Its Brand

    Its been a trying year for Apple as the brand continues to shape its post-Jobs identity and

    competitors become increasingly tenacious, emboldened by a marketplace no longer totally

    mesmerized by Apples spell.

    Despite the cynicism the public feels about Apples incessant parade of product upgrades and

    disturbing news about its factory conditions in China, we still love one aspect of Apples brand: the

    retail stores. In fact, in 2012 Apples more than 400 stores attracted 120 million people. So the

    company plans to strengthen its brand by expanding its retail space: closing 20 stores that can no

    longer accommodate the growing crowds and opening 30 new stores across the globe, expanding

    the brands retail presence into 13 countries.

    Clearly something profound is happening in Apples retail stores; something that extends beyond

    our attraction to digital devices, our obsession with the latest technology and our affinity for the

    knowledgeable customer service representatives that answer our questions. Apple retail stores are

    becoming part of our communitieslike your local Starbucks, but without the requisite caffeine

    addiction.

    2.3 The creative aspects of advertising

    The creative aspects of advertising are the creative process, the creative a situation, and the creative

    (person). The process addresses the mechanics and aspects of advertising are the creative process,

    the creative grabs attention, the situation is the surroundings that are practical and workable, and

    the creative is who injects some of their personality into The creative deliver ads that appeal and

    deliver on aspects of advertising are the creative process, the creative their promises to the target

    audience.

    Creative advertising is more memorable, longer lasting, works with less media spending, and

    builds a fan community...faster.

    But are creative ads more effective in inspiring people to buy products than ads that simply

    catalogue product attributes or benefits? Numerous laboratory experiments have found that

    creative messages get more attention and lead to positive attitudes about the products being

  • marketed, but theres no firm evidence that shows how those messages influence purchase

    behavior. Similarly, there is remarkably little empirical research that ties creative messaging to

    actual sales revenues. Because product and brand managersand the agencies pitching to them

    have lacked a systematic way to assess the effectiveness of their ads, creative advertising has been

    a crapshoot.

    2.4. Important points of advertising agency

    As such, here are five ways that you can get the most from your advertising, digital, public-relations

    or marketing agency.

    1. Be thoughtful

    Whether youre thinking about a major new campaign or talking about a minor tactical

    execution, before you pick up the phone or send out an email, ask yourself: What do we really want?

    And need? Dont focus just on what you seek to make." Rather, spend time truly contemplating

    what youre seeking to accomplish, with what funding, with what audience, in what timeframe. Find

    different ways to define the problem that youre seeking to solve (or opportunity to exploit) in terms

    of how you frame it overall as well as how it will be measured. Without a doubt, these are hard

    questions. But bear in mind that you're fundamentally defining the box in which all future

    conversations will be held, so take the time to consider the ideal way to start the conversation to get

    the richest thinking in the areas that can lead to the biggest wins for you and your brand.

    2. Be patient.

    Great advertising takes time. To the extent that you are able, plan the work well in advance

    so that both parties can comfortably work the plan. Remember that you are making art--art that fuels

    commerce, yes--but art, nonetheless. And great art is best served by time, imagination and plenty of

    room for possibilities.

    3. Be consistent.

    It goes without saying, but its hard to hit a target when its constantly moving. (And if it is

    moving, its always helpful for everyone to mutually acknowledge the aforementioned movement.)

    We get it. Things change. Every organization has its own dynamics that are constantly swirling and

  • shifting. No one tries to be inconsistent. That said, prepare your agency for what lies ahead. If you

    keep them outside of the circle of trust, its hard for them to give you good counsel. And keeping

    everyone on the same page means you will spend less, get more, and both parties will feel better

    about the deliverables and results alike.

    4. Never underestimate the power of cheesecake.

    Yes, you read that right. At the risk of being inelegant: Say thank you. Appreciate

    good and hard work when you receive it. Yes, we are being paid a fair and honest wage for our work.

    But people are people, you know the drill. After the launch of a major campaign years ago, a client

    sent cheesecake as a thank you to our team.If were doing our job right, both clients and their agency

    partners want the same things: Dynamic, breakthrough work that fuels brand equity and sparks short-

    term sales alike and a process that is efficient, effective and enjoyable, if not downright fun. It's a

    commonsense approach that, frankly, isnt all that common any more.

    TASK 3

    3.1. Below-the-line promotion

    Below-the-line promotion involves promotional techniques which aim to reach consumers more

    directly and which are more within the organizations control. Below-the-line promotions include

    different and interesting ways of connecting with targeted groups. LUNDY used a variety of

    different below-the-line promotions to develop its Million Voices campaign.

    Advantages

    Great for building customer relationship

    Lower required investment

    Offers a deep direct reach and the opportunity to connect with customers in an entirely new

    way

    Promotion can be extremely targeted

    Below the promotion tools are relatively inexpensive

    Easy to track

  • Disadvantages

    Targeting may be difficult

    Extensive training may be required for the marketing teams

    Deeper understanding of the customers and their culture is required

    Users (Especially rural) may not trust the one to one contact due to earlier -ve experiences

    Requirement of the localized content creation

    Targeting the diverse cultures and users with the same theme is difficult.

    3.2. Below The Line (BTL) Promotional Techniques

    Following are the different types of BTL tools being used for consumer promotions:

    DDS (Door to Door Selling)

    Coupons

    Rebates

    Promotional Pricing

    Trade-In

    Loyalty Programs

    Door to Door Selling

    Door-to-door is a sales technique in which a salesman walks from one door to another trying to

    sell a product or service to the general public. A variant of this involves cold calling first, when

    another sales representative attempts to gain agreement that a salesperson should visit. Door-to-

    door selling is usually conducted in the afternoon hours, when the majority of people are at home.

  • DDS Products

    Typically, products sold door to door will be of the same variety that can be purchased at large

    discount stores. The products accounting for the largest share of direct-sales revenue includes

    cleaning supplies, cleaning equipment, magazines, and home improvement products. The largest

    of these would be the home improvement products where item could be new or repaired roofs,

    siding, new replacement windows, and decorative stone.

    In Pakistan the first DDS was launched by Wheel Washing Powder back in 1995 with a notable

    success. Its competitor Aerial Surf was the immediate follower. Since then a lot brands have

    adopted this tool which include:

    Lifebuoy

    Blue Band

    Energile

    Lux

    Macleans

    Head & Shoulders

    Interestingly, in many countries, encyclopedias, including theEncyclopedia Britannica, were

    frequently sold by door-to-door salesmen, although the practice is now less common.

    Coupons

    Most consumers are quite familiar with this form of sales promotion, which offers purchasers price

    savings or other incentives when the coupon is redeemed at the time of purchase. Coupons are

    short-term in nature since most (but not all) carry an expiration date after which the value may not

    be received. Also, coupons require consumer involvement in order for value to be realized. In most

    cases involvement consists of the consumer making an effort to obtain the coupon (e.g., clip from

    newspaper) and then presenting it at the time of purchase.

    Coupons are used widely by marketers across many retail industries and reach consumers in a

    number of different delivery formats including:

  • Free-Standing Inserts (FSI) Here coupon placement occurs loosely (i.e., inserted) within

    media, such as newspapers and direct mail, and may or may not require the customer to cut

    away from other material in order to use.

    Cross-Product These consist of coupons placed within or on other products. Often a

    marketer will use this method to promote one product by placing the coupon inside another

    major selling product. For example, a pharmaceutical company may imprint a coupon for

    a cough remedy on the box of a pain medication. Also, this delivery approach is used when

    two marketers have struck a cross promotion arrangement where each agrees to undertake

    certain marketing activity for the other.

    Product Display Some coupons are nearly impossible for customers to miss as they are

    located in close proximity to the product. In some instances coupons may be contained

    within a coupon dispenser fastened to the shelf holding the product while in other cases

    coupons may be attached to a special display (see POP display below) where customers

    can remove them (e.g., tear off).

    Internet Several specialized websites, such as HotCoupons.com, and even some

    manufacturers sites, allow customers to print out coupons. These coupons are often the

    same ones appearing in other media, such as newspapers or direct mail. In other cases,

    coupons may be sent via email, though to be effective the customers email program must

    be able to receive HTML email (and not text only) in order to maintain required design

    elements (e.g., bar code).

    Rebates

    Rebates, like coupons, offer value to purchasers typically by lowering the customers final cost for

    acquiring the product. While rebates share some similarities with coupons, they differ in several

    keys aspects. First, rebates are generally handed or offered (e.g., accessible on the Internet) to

    customers after a purchase is made and cannot be used to obtain immediate savings in the way

    coupons are used. (So called instant rebates, where customers receive price reductions at the

    time of purchase, have elements of both coupons and rebates, but for our purposes we will classify

    these as coupons due to the timing of the reward to the customer.)

  • Second, rebates often request the purchaser to submit personal data in order to obtain the rebate.

    For instance, customer identification, including name, address and contact information, is

    generally required to obtain a rebate. Also, the marketer may ask those seeking a rebate to provide

    additional data such as indicating the reason for making the purchase.

    Third, unlike coupons that always offer value when used in a purchase (assuming it is accepted by

    the retailer), receiving a rebate only guarantees value if the customer takes actions. Marketers

    know that not all customers will respond to a rebate.

    Finally, rebates tend to be used as a value enhancement in higher priced products compared to

    coupons. For instance, rebates are a popular promotion for automobiles and computer software

    where large amounts of money may be returned to the customer.

    Promotional Pricing

    One of the most powerful sales promotion techniques is the short-term price reduction or, as known

    in some areas, on sale pricing. Lowering a products selling price can have an immediate impact

    on demand, though marketers must exercise caution since the frequent use of this technique can

    lead customers to anticipate the reduction and, consequently, withhold purchase until the price

    reduction occurs again.

    As we will see in a later tutorial, promotional pricing is also considered within the framework of

    the Price marketing mix component. More on of this technique will be provided in that discussion.

    Trade-In

    Trade-in promotions allow consumers to obtain lower prices by exchanging something the

    customer possess, such as an older product that the new purchase will replace. While the idea of

    gaining price breaks for trading in another product is most frequently seen with automobile sales,

    such promotions are used in other industries, such as computers and golf equipment, where the

    customers exchanged product can be resold by the marketer in order to extract value.

  • TASK4

    4.1. integrated promotional strategy budget

    Crafting a marketing communication budget serves as your advertising road map for the course of

    a year. Having a formal budget laid out lets you carefully evaluate where you are spending your

    advertising dollars and gives you complete control over your marketing initiatives. By having

    documentation that clearly outlines what you are spending, you can more easily calculate your

    return on investment later and identify which marketing campaigns were profitable and which

    were not.

    Step 1

    Calculate how much your overall marketing budget will total so you can best decide how to divide

    it among various marketing communication actions. This number can be calculated based on a

    percentage of the previous year's sales or can be a set increase over the marketing budget of the

    previous year, depending on the financial parameters of your company.

    Step 2

    Decide what types of advertising you will do throughout the year so you can begin to calculate

    how you can divide the budget. Typical segments of a marketing communication budget include

    print, web, TV, radio and outdoor advertising, though this could vary depending on your

    advertising needs.

    Step 3

    Review the previous year's advertising budget and return on investment reports, if applicable, to

    gauge the costs for advertising campaigns, as well as the most lucrative and effective advertising

    investments you made.

    Step 4

    Assign a budget to each section of your advertising campaign and break it down by month or week.

    For example, TV advertising campaigns often work in quarterly or yearly contracts. Divide this

  • sum by the months affected to get a monthly breakdown. A print campaign might change from

    week to week. Calculate what your weekly plans amount to over a month.

    Step 5

    Set aside some of the marketing budget for new advertising ventures. A last-minute deal might be

    offered by an advertising sales representative, or you might come across an advertising opportunity

    you weren't aware of when calculating your yearly budget.

    Step 6

    Include a segment of the advertising budget for marketing materials, such as letterhead, flier

    printing, T-shirts or giveaway items. Promotional items are an effective branding tool so you need

    to account for this area of advertising within your budget.

    4.2. Highlight the necessary process for the formulation of an organizational

    Plan of integrated promotional strategy

    As understood the given scenario of Lundy Ltd, a budget of 16,000 is being allocated to spend

    on integrated promotional strategy. The following table explains the deployment of budget of

    16,000 for marketing communication.

    Area of spending Amount of

    spending ( )

    %

    Tradeshow/Events 2,080 13%

    Website design,

    management and

    optimization

    1,920 12%

    Print advertising 1,920 12%

    Search engine

    optimization

    1,760 11%

    Pay per click 1,440 9%

    Direct mail 1,280 8%

  • Public relations 1,120 7%

    Social Media 1,120 7%

    Tele marketing 1,120 7%

    Automation/lead

    nurturing

    960 6%

    E-mail marketing 960 6%

    Visual events/webinars 640 4%

    Total 16,000 100%

    As explained in table and figure, high quantity of budget amount is set to spend on website design

    and management, trade shows, e-mail marketing, search engine optimisation, pay per click, direct

    mail, publications, telemarketing and social media. Limited budget is being allocated to spend on

    print advertising, visual events and automation.

    4.3. Integration of promotional techniques

    Across the globe, there is continuity in market deregulation and emergence of individualized

    segmentation of Consumer tastes and preferences. So IMC being not an easy process has to face

    internal as well as external challenges. As some markets flee traditional media they still come

    across some communication clutter. The challenges of IMC are.

    2,0801,9201,920

    1,7601,440

    1,2801,1201,1201,120

    960960

    640

    Website design, management and

    E-mail marketing

    Pay per click

    Public relations

    Social media

    Print advertising

    Amount of spending

    Amount of spending

  • A shift in market place power from manufacturer to wholesaler to retailer/shift in

    channel power.

    A movement away from relying on advertising focused approach.

    Rapid growth of data base marketing.

    A shift in traditional promotions.

    Change in the way the advertising agencies compensated.

    Rapid growth of internet marketing.

    Growing competition in relationship marketing.

    MANAGERIAL IMPLICATIONS:

    Integrated Marketing Communication is the boost for promotional mix elements, whether it is

    advertising; direct marketing, interactive/internet marketing, sales promotion, publicity/public

    relations or personal selling, combining these disciplines to provide consistently and clearly a

    maximum communication impact. Promotion has been defined as the coordination of all seller-

    initiated efforts to set up channels of information and persuasion to sell goods and services or

    promote an idea.

    Promotion is the systematic attempt to move forward step by step prospects from a state of

    unawareness to awareness then to knowledge and liking, then to preference and conviction and

    finally to action (purchase) or a positive behavioral response. The communication accomplishes

    its objectives in a series of mental stages as the receiver or audience moves from unawareness to

    actual deal. The purpose of integrated marketing communication should be to maximize customer

    delivered value. Integrated marketing communication plays a very important role in the ability and

    capacity of firm to innovate and success fully delivers competitive response through value added

    offerings to their customers. The various steps commonly followed in an integrated marketing

    communication process are:

    Identify the audience to be targeted.

    Determine objectives of your communication.

  • Design the message of communication.

    Select your media channel.

    Decide the budget.

    Decide the marketing communication mix.

    Measuring your results.

    Managing and coordinating IMC.

    4.4. Measuring the Effectiveness of Your Advertising Campaign

    The most suitable criteria for evaluating the effectiveness of advertising, depends on a number

    variables, such as the advertising goals, the type of media used, the cost of evaluation, the value

    that the business or advertising agency places on evaluation measures, the level of precision and

    reliability required, who the evaluation is for and the budget. It is difficult to accurately measure

    the effectiveness of a particular advertisement, because it is affected by such things as the amount

    and type of prior advertising, consumer brand awareness, the availability of cost effective

    evaluation measures, the placement of the advertising and a range of things about the product itself,

    such as price and even the ability of the target audience to remember.

    Conclusion

    As understood various scenario including theories, models and techniques of advertising and

    promotion in business; marketing communication process plays vital role in advertising and

    promotional activities where it involves sophisticated tools, systems and technology that help to

    attain potential results. However, promotion and advertising should be innovative and creative to

    captivate target audience. In addition, the advertising and promotional practices has limitations

    where they have to follow the regulations of the advertising and broadcasting authorities.