ADVERTISING AND INTEGRATED MARKETING COMMUNICATION

BY
K.L.NARAYANAN
DEPARTMENT OF MBA
TAGORE ENGINEERING COLLEGE
RATHINAMANGALAM POST, VANDALUR
CHENNAI
 ABSTRACT

This paper deals with advertising and integrated marketing communication for sports utility
vehicles. Advertising as to be integrated with other marketing elements like personal selling,
promotion, publicity, propaganda. This paper analysis detail about the concept like marketing
communication, direct marketing, database marketing, sales promotion, sponsorships,
exhibitions, internet marketing, and public relations. The analysis interprets how the SUVs are
marketed through advertisement and IMC and their strategies to be followed in the business
cycle.
INTRODUCTION:

ADVERTISING:
Advertising is defined as any paid form of non-personal presentation of ideas, goods and
services by an identified sponsor to establish or continue exchange relationships with customers
and at times, with other stakeholders.
INTEGRATED MARKETING COMMUNICATION:
Integrated Marketing Communications is a term used to describe a holistic approach to
marketing communication. It aims to ensure consistency of message and the complementary use
of media. The concept includes online and offline marketing channels. Online marketing
channels include any e-marketing campaigns or programs, from search engine optimization
(SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog,
micro-blogging, RSS, podcast, Internet Radio and Internet TV. Offline marketing channels are
traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard,
radio, and television. A company develops its integrated marketing communication programme
using all the elements of the marketing mix (product, price, place, and promotion).
MARKETING MIX:

The starting point of the IMC is the marketing mix (Product, Price, Promotion, and Place)
which involves different types of marketing, advertising and sales. Without a complete IMC plan
there is no integration or harmony among client and customers. The goal of an organization is to
create and maintain communication throughout its own employees and throughout its customers.

In order to achieve such goal a marketing plan is created which consists on the following
steps:
1. Situation Analysis
2. Marketing Objectives
3. Marketing Budget
4. Marketing Strategies
5. Marketing Tactics
6. Evaluation of performance.
REASONS FOR THE GROWING IMPORTANCE OF INTEGRATED MARKETING
COMMUNICATION:

Several shifts in the advertising and media industry have caused IMC to develop into a
primary strategy for marketers:

1. From media advertising to multiple forms of communication.

2. From mass media to more specialized (niche) media, which are centered around specific
target audiences.
3. From a manufacturer-dominated market to a retailer-dominated, consumer-controlled
market.
4. From general-focus advertising and marketing to data-based marketing.
5. From low agency accountability to greater agency accountability, particularly in
advertising.
6. From traditional compensation to performance-based compensation (increased sales or
benefits to the company).
7. From limited Internet access to 24/7 Internet availability and access to goods and
services.
8. its brilliant

Selecting the Most Effective Communications Elements:

The goal of selecting the elements of proposed integrated marketing communications is to create
a campaign that is effective and consistent across media platforms. Some marketers may want
only ads with greatest breadth of appeal: the executions that, when combined, provide the
greatest number of attention-getting, branded, and motivational moments. Others may only want
ads with the greatest depth of appeal: the ads with the greatest number of attention-getting,
branded, and motivational points within each.

Although integrated marketing communications is more than just an advertising campaign, the
bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the
bulk of the research budget is also spent on these elements of the campaign. Once the key
marketing pieces have been tested, the researched elements can then be applied to other contact
points: letterhead, packaging, logistics, customer service training, and more, to complete the
IMC cycle.

LIVE EXAMPLE:

Competition is hotting up in the sports utility vehicle segment (SUV) in India once again.
Even as Mahindra & Mahindra Ltd is in the process of rolling out an integrated marketing plan
to announce the relaunch of Scorpio, Tata Motors is drawing up an aggressive marketing strategy
to popularise its recently-launched petrol variant of Tata Safari.
For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote
the new avatar of Scorpio. Created by Interface Communications, the mass media campaign
includes a series of press advertisements and a television commercial.
 As for the rationale behind the relaunch of Scorpio, says Mahindra & Mahindra Ltd executive
vice-president (marketing & sales) Rajesh Jejurikar: “After conducting an extensive market
research (with AC Nielson), we upgraded our existing model with new features. However, the
positioning of the brand will remain the same so the adline will continue to be the same
—‘Nothing Else Will Do.’”
The company plans to focus on press ads to highlight the new features and improved fuel
efficiency of the upgraded version of Scorpio. “To support mass media advertising, we’ll be
hosting roadshows and ground promos. Till now we have sold over 20,000 Scorpios since we
launched this brand. With this improved version, we will phase out the old brand,” he adds.

In addition, Mahindra & Mahindra has recently launched a nationwide talent search
programme titled ‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this
initiative, the company plans to strengthen Scorpio’s brand positioning of being a youthful and
sporty SUV, says Mr Jejurikar.

Tata Motors is gearing up to launch a new multi-media ad campaign to announce the new
variant of Tata Safari, the petrol version. On Tata Motors new marketing strategy, says Ogilvy &
Mather India clients service director Sharmila Malekar: “To announce the launch of Tata Safari
(petrol variant), we will be launching a multi-media ad campaign within a month. The new
campaign will include, press ads, TVCs and radio advertising. There will be a new adline too.”

At present, the baseline for Tata Safari is ‘Make Your Own Roads’. In addition to mass media
advertising, the agency will continue to focus on its CRM initiatives such as the Tata Safari
Explorer Club to promote the new avatar of Tata Safari.

In the Indian automobile industry, SUVs today account for only 15 per cent of the total
market unlike western countries where it is almost 80 per cent.

MARKETING COMMUNICATION:

As the term suggests, marketing communication functions within a marketing framework.

Traditionally known as the promotional element of the four Ps of marketing (product, place,
price, and promotion), the primary goal of marketing communication is to reach a defined
audience to affect its behavior by informing, persuading, and reminding. Marketing
communication acquires new customers for brands by building awareness and encouraging trial.
Marketing communication also maintains a brand's current customer base by reinforcing their
purchase behavior by providing additional information about the brand's benefits. A secondary
goal of marketing communication is building and reinforcing relationships with customers,
prospects, retailers, and other important stakeholders.
 The evolution of this new perspective has two origins. Marketers began to realize that
advertising, public relations, and sales were often at odds regarding responsibilities, budgets,
management input and myriad other decisions affecting the successful marketing of a brand.
Executives in each area competed with the others for resources and a voice in decision making.
The outcome was inconsistent promotional efforts, wasted money, counterproductive
management decisions, and, perhaps worst of all, confusion among consumers. Secondly, the
marketing perspective itself began to shift from being market oriented to market driven.
Marketing communication was traditionally viewed as an inside-out way of presenting the
company's messages.

TWO IDEAS OF IMC:

1) Relationship building.

2) Synergy.

Ideally, IMC is implemented by developing comprehensive databases on customers and

prospects, segmenting these current and potential customers into groups with certain common
awareness levels, predispositions, and behaviors, and developing messages and media strategies
that guide the communication tactics to meet marketing objectives.

CHARACTERISTICS OF ADVERTISING:

There are 4 main characteristics of advertising in which SUVs posses.

• It is persuasive in nature.
• It is non-personal.
• It is paid for by an identified sponsor.
• It is disseminated through mass channels of communication.
 Advertising also helps create and maintain brand equity. Brand equity is an intangible asset
that results from a favorable image, impressions of differentiation, or consumer attachment to the
company, brand, or trademark. This equity translates into greater sales volume, and/or higher
margins, thus greater competitive advantage.

Cost is the greatest disadvantage of advertising. The average cost for a 30-second spot on
network television increased fivefold between 1980 and 2005. Plus, the average cost of
producing a 30-second ad for network television is quite expensive. It is not uncommon for a
national advertiser to spend in the millions of dollars for one 30-second commercial to be
produced. Add more millions on top of that if celebrity talent is utilized. Credibility and clutter
are other disadvantages.

CONSIDERATIONS FOR ADVERTISING AND IMC:

The following are strongly considered for advertising and IMC for SUVs.

 Public Relations.
 Direct Marketing
 Database Marketing.
 Sales Promotion.
 Sponsorships.
 Exhibitions.
 Personal Selling.
 Internet Marketing.

CONCLUSION:

Marketing communication has become an integral part of the social and economic system in
the United States for SUVs. Consumers rely on the information from marketing communication
to make wise purchase decisions. Businesses, ranging from multinational corporations to small
retailers, depend on marketing communication to sell their goods and services. Marketing
communication has also become an important player in the life of a business. Marketing
communication helps move products, services, and ideas from manufacturers to end users and
builds and maintains relationships with customers, prospects, and other important stakeholders in
the company. Advertising and sales promotion will continue to play important roles in marketing
communication mix. However, marketing strategies that stress relationship building in addition
to producing sales will force marketers to consider all the elements in the marketing
communication mix. In the future new information gathering techniques will help marketers
target more precisely customers and prospects using direct marketing strategies. New media
technologies will provide businesses and consumers new ways to establish and reinforce
relationships that are important for the success of the firm and important for consumers as they
make purchase decisions. The Internet will become a major force in how organizations
communicate with a variety of constituents, customers, clients, and other interested parties.