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Advertising and Promotion (MKT621)

Lesson 24

ONLINE ADVERTISING

OVERVIEW

This lecture will further study the structural challenges and the new developments in online

advertising challenges and explain tool for online advertising and remind about different

medias use these days. Students will also be introduced to integrated advertising and integrated

marketing communication (IMC) and the reasons for its growing importance. The elements of

promotional mix the concept of direct marketing its various steps of operation its advantages

and disadvantages will be highlighted besides this and explanations regarding the promotional

planning process, sales promotion different definitions and its features will be discussed.

ONLINE ADVERTISING CHALLENGES

Despite being becoming popular rapidly the structural challenges and the new developments

attached to the online advertising are the important considerations for this aspect.

Structural Challenges:

· At present planning process remains a particular challenge.

· Lack of good copy or Marketing technique.

· A compelling & irresistible offer essential for prospect.

New Developments:

· Better Metrics.

· Greater use of Sound.

· More customer support.

· Customized websites.

TOOLS FOR ONLINE ADVERTISING

For online advertising information about various tools used in this context are explained below:

Macromedia Flash MX: It is a professional standard authoring tool to produce high impact

Web sites. High creativity is possible with animation, interactive navigational controls etc.

Adobe Photoshop: It is comprehensive toolset with new capabilities. Experiments with

painting effects, patterns for stand out images. Tools like retouching, painting, drawing & web

tools can help in creating extraordinary images.

JAVA: It is extensively used in internet media for applets, graphics & other interactive

applications.

HTML: Hyper text markup language is very useful tool in creating web pages.

DHTML: It is dynamic form of pre existing HTML.

ASP & JSP: Active server pages & Java server pages latest technology for interactive web

pages.

MEDIAS USED IN THESE TIMES

To sum up following medias are extensively used in these days for advertising:

· Radio

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Advertising and Promotion (MKT621)

· TV

· Newspapers

· Magazines

· Outdoor or out of home

· Directories

· Internet

ADVERTISING & INTEGRATED MARKETING COMMUNICATION (IMC)

The IMC approach in marketing planning and strategy has been gaining popularity since

1990's and is being adopted by both large and small companies. The proponents of IMC argue

that it is one of the easiest ways for a company to maximize return on its investments in

marketing and promotions. Some of the reasons for growing importance of IMC are given

below:

· Marketing budget being shifted to consumer & Trade promotions.

· Retailers becoming more powerful & dominating manufacturers.

· New tools target specific rather mass media & are economical.

· Internet & e-commerce have redefined way business is done & the way companies interact

with consumers.

· Companies emphasize communication with consumers.

· Advertisers want more accountability of advertising agencies & the change is taking place

rapidly.

· There is rapid growth & development of database marketing.

The tools used to accomplish an organization's communication objectives are refer to as

promotional mix. Promotional mix has various elements that need to be appropriately chosen to

design and integrated marketing communication campaign these elements which comprise IMC

are illustrated below:

The Promotional Mix The Tool for IMC Elements

Advertising Direct

Sales

Publicity

Personal

Interactive

Marketing

Promotion

selling

Marketing

ADVERTISING:

Reasons for importance:

1. A cost effective medium to reach vast audience.

2. Very effective medium for generating awareness, providing knowledge & changing

attitude.

3. A highly used tool for creating brand images.

4. Extensively used as a tool for creating differentiation among various brands.

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Advertising and Promotion (MKT621)

DIRECT MARKETING:

· Consumer credit cards.

· Direct marketing syndicates.

· Telemarketing.

Six Steps of Direct Marketing Operation

· Establish objectives for direct marketing. Decide what is the role of direct marketing in

overall promotional planning of a brand.

· Collect database of target audience.

· Decide the media to be used.

· Decide message to be sent to customers.

· How to handle responses, queries & orders.

· Measure & evaluate the response.

Advantages of Direct Marketing

· Personalization

· Cost.

· Measures of effectiveness.

· Selective reach.

· Segmentation capability

· Frequency.

· Timing.

Disadvantages of Direct Marketing

· Image factor

· Accuracy

· Rising costs

· Content support

SALES PROMOTION:

Sales promotion is basically define as "A direct inducement that offers an extra value or

incentive for the product to the sales force, distributors or the ultimate consumer with the

primary objective of creating an immediate sale." Whereas the American Marketing

Association (AMA) in 1988 defined it as "Media & non media marketing pressure applied for a

predetermined, limited period of time in order to stimulate trial & impulse purchases, increase

consumer demand, or improve product quality." However, the latest definition adopting by the

counsel of sales promotion agencies define it as "Sales promotion is a marketing discipline that

utilizes a variety of incentive technique to structure sales related programs targeted to

consumers, trade, and / or sales levels that generate a specific , measurable action or response

for a product or service."

Features of Sales Promotion

Following are the features of sales promotion:

· Involves inducement to provide incentive to buy.

· Incentive is the key element in a promotional program.

· Attempts to add value to the product or service by appealing to "value" (pocket).

· Acts as an acceleration tool. Designed to speed up sales.

· Targeted at different parties with different types & levels of incentives.

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Advertising and Promotion (MKT621)

PROMOTIONAL PLANNING PROCESS

The process of integrated marketing communication begins with the review of marketing plan.

A marketing plan is a written document that describes the marketing strategy & programs

developed for a brand or product line.

Information essential for Marketing Plan:

Basically a market plan contains following information:

Market Situational Analysis: Internal analysis external analysis cover assessment of

companies promotion capabilities review of company's previous promotional programs and

results, assessment of brand image and brand or product lines relative strength and weaknesses.

External analysis covers customer analysis competitor analysis and any trends which affect the

promotional program.

Specific marketing objectives: These provide direction and time frame for marketing

activities and mechanism for measuring performance.

Marketing strategy: It includes selection of target market(s) and the decisions relating to

marketing mix.

Tactics An action program: It is require for implementing marketing strategies, including

deciding specific tasks and responsibilities.

Evaluation & Control Mechanism: This involves evaluating performance and providing feed

backs so that necessary control activities can be introduced and necessary changes made to

assure that the objects are met.