4.1 INTEGRATED MARKETING COMMUNICATION (IMC)
1. Meaning
Integrated Marketing Communication (IMC) is a strategic approach that
combines all promotional tools and communication channels to deliver a
consistent, clear, and unified message to customers. IMC ensures that all
communication speaks with “one voice”.
Example: Coca-Cola’s
message of “happiness and sharing” is seen consistently in its TV ads, social
media, events, and even packaging.
2. Features of IMC
·
Unified Message – Ensures harmony in all communication
efforts.
·
Multi-Channel Approach – Uses both traditional (TV, print) and
digital (social media, email) platforms.
·
Audience-Centered – Focuses on what customers want to hear,
not just what the company wants to say.
·
Cost-Effective – Saves money by avoiding duplication of
efforts.
·
Long-Term Relationship Building – Goes beyond short-term sales to create
loyal customers.
3. Importance of IMC
·
Consistency builds trust → Customers remember and trust brands with
clear, repeated messages.
·
Stronger impact → Repetition across channels reinforces
brand recall.
·
Efficient spending → Money is not wasted on scattered
campaigns.
·
Competitive advantage → A clear, united brand message stands out
in crowded markets.
·
Relationship marketing → Builds emotional connections with
customers (e.g., Nike’s “Just Do It”).
4.1.0 ELEMENTS OF IMC
Advertising: It
is one of the most widely used elements of IMC. It refers to paid promotion
through mass media such as television, radio, newspapers, magazines, websites,
and digital platforms like YouTube. Its primary strength lies in reaching a
large audience quickly and creating strong brand awareness. For example,
Apple’s iPhone launch commercials generate excitement and recognition
worldwide.
Sales promotion: It focuses on short-term incentives to boost sales or encourage
product trials. These may include discounts, coupons, contests, “buy one get
one free” offers, or loyalty reward programs. A common example is Amazon’s
“Great Indian Festival,” which attracts millions of buyers through special
deals and limited-time offers.
Public relations (PR): It plays a different role by building goodwill and shaping a positive
image of the company. Unlike advertising, PR often relies on non-paid media
coverage through press releases, sponsorships, events, or corporate social
responsibility (CSR) activities. For instance, when a company donates to
disaster relief and earns news coverage, it enhances its reputation without
direct advertising.
Personal selling: It involves direct, face-to-face interaction between a salesperson and
a potential customer. This element is particularly effective for high-value,
complex, or customized products such as cars, real estate, or financial
services. A real estate agent explaining the features and benefits of a new
property project is an example of how personal selling builds trust and
addresses customer needs.
Direct marketing: is another important component, involving direct contact with
customers through emails, SMS, catalogs, or telemarketing. It enables
personalized communication and helps businesses build stronger relationships
with individual customers. For instance, Flipkart frequently sends tailored
product recommendations to users based on their browsing history.
Digital or online marketing: It has become increasingly vital in the modern IMC mix. It uses
platforms like social media (Instagram, Facebook, Twitter), search engines,
websites, blogs, and mobile apps to reach audiences. Its biggest advantages
include two-way interaction, global reach, and measurable results. A good
example is Zomato’s witty Instagram posts and push notifications that engage
users and reinforce brand identity.
Packaging and branding act as silent communicators in the IMC strategy. The design, colors,
and slogans on a package create instant recognition and communicate the brand’s
values.
Ex: For
instance, Cadbury’s signature purple wrapper and the tagline “Kuch Meetha Ho
Jaaye” consistently remind customers of celebration and sweetness.
4.2 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS
1. ADVERTISING
Meaning: Advertising is a paid, non-personal
form of communication used by businesses to inform, persuade, or remind
customers about products, services, or ideas. It uses mass media such as TV,
radio, newspapers, magazines, billboards, and online platforms.
Features:
·
Paid communication (sponsored by the company).
·
Non-personal (same message reaches many people).
·
Aims at creating awareness and shaping brand
image.
Importance:
·
Builds brand recognition
and recall.
·
Reaches a large audience quickly.
·
Helps in launching new products.
·
Influences consumer attitudes and buying
decisions.
Example: Coca-Cola’s global ad campaigns
focusing on happiness and sharing.
Types of Advertising
1. Print
Advertising
o
Found in newspapers, magazines, brochures, and
flyers.
o
Useful for reaching local or specific target
audiences.
2. Broadcast
Advertising
o
Includes TV and radio ads.
o
Effective for mass reach and creating strong
brand recall.
3. Outdoor
Advertising
o
Billboards, posters, hoardings, and transit ads
(on buses/trains).
o
Grabs attention of people on the move.
4. Digital/Online
Advertising
o
Appears on websites, social media, search
engines, and apps.
o
Popular due to low cost, wide reach, and
targeting options.
5. Direct
Mail Advertising
o
Letters, catalogs, and promotional material sent
directly to customers.
o
Personalized and measurable.
6. Telemarketing
o
Advertising over the phone to inform or persuade
customers.
o
More interactive but often considered intrusive.
7. Institutional/Corporate
Advertising
o
Promotes the company’s image
rather than a specific product.
o
Example: Infosys showcasing its innovation and
sustainability.
8. Product
Advertising
o
Promotes a specific product or service to
increase demand.
o
Example: Apple advertising its new iPhone.
2. SALES PROMOTION
Meaning: Sales promotion refers to short-term
incentives given to customers or dealers to boost sales or encourage product
trials. It complements advertising and personal selling.
Features:
·
Short-term and immediate in nature.
·
Provides extra value or incentive to customers.
·
Often price-oriented (discounts, coupons) but
can also be non-price offers (free gifts, contests).
Importance:
·
Creates quick demand
and increases sales in the short run.
·
Encourages product trials
and repeat purchases.
·
Helps clear unsold stock.
·
Provides competitive advantage
in crowded markets.
Example: Amazon’s “Big Billion Day” with flash
sales and heavy discounts.
Types of Sales Promotions
1. Consumer-Oriented
Promotions
These are aimed directly at final customers to encourage quick buying. Examples
include:
a) Coupons
– offering discounts on products.
b) Free
samples – allowing customers to try before buying.
c) Price
discounts – temporary price cuts to boost sales.
d) Contests
and lotteries – giving customers a chance to win prizes.
e) Buy
one, get one free (BOGO) – motivating bulk purchases.
2. Trade-Oriented
Promotions
These are targeted at wholesalers, retailers, or dealers to push the product in
the market. Examples include:
a) Trade
allowances – discounts or incentives given to retailers.
b) Free
goods – offering extra stock for promoting a brand.
c) Dealer
contests – rewarding retailers who sell more.
d) Point-of-purchase
(POP) displays – special stands or displays to attract
attention inside stores.
3. Sales
Force Promotions
These motivate the company’s own salespeople to perform better. Examples
include:
a) Bonuses
or incentives – cash rewards for achieving targets.
b) Sales
contests – competitions among sales staff.
c) Recognition
programs – awards, trips, or certificates to motivate
employees.
3. PUBLIC RELATIONS (PR)
Meaning: Public Relations is the practice of
building and maintaining a positive image of the organization among the public,
stakeholders, and media. Unlike advertising, PR often involves unpaid or earned
publicity.
Features:
·
Focuses on goodwill and trust.
·
Uses tools like press releases, events,
sponsorships, and CSR activities.
·
Works through indirect communication.
Importance:
·
Builds credibility
since messages often come from third-party sources (like news media).
·
Helps manage crises and repair damaged
reputation.
·
Strengthens long-term relationships
with the public.
·
Enhances overall brand image
beyond just sales.
Example: Tata Group’s CSR activities, such as
funding education and healthcare projects, which enhance its goodwill.
4.3 DISTRIBUTION CHANNEL, THEIR ROLE, TYPES OF CHANNELS AND CHANNEL
DESIGN
1. Distribution Channel
A distribution channel is the path or route
through which goods and services move from the producer to the final consumer.
It includes intermediaries such as wholesalers, retailers, distributors, and
agents who help in making products available at the right place, at the right
time, and in the right quantity.
2. Role of Distribution Channels
Distribution channels play an important role in marketing:
·
Bridging the gap
– They connect producers with consumers spread across different locations.
·
Time and place utility
– They ensure products are available where and when customers need them.
·
Reducing workload
– By handling storage, transportation, and delivery, intermediaries make it
easier for producers.
·
Providing information
– Channels help collect market feedback and share it with producers for better
decision-making.
·
Facilitating exchange
– They make the buying process convenient through credit facilities, packaging,
and customer support.
TYPES OF DISTRIBUTION CHANNELS
1. Direct Channel
(Zero-Level Channel)
·
In this type, the producer sells goods directly
to consumers without involving intermediaries.
·
Examples: company outlets, online sales through
websites, door-to-door selling.
·
Importance:
Helps maintain full control over pricing, customer relationships, and brand
image.
2. Indirect Channel
Here, one or more intermediaries are involved between the producer and
consumer.
·
One-level channel:
Producer → Retailer → Consumer
o
Example: Clothing brands selling through retail
stores.
·
Two-level channel:
Producer → Wholesaler → Retailer → Consumer
o
Example: FMCG products (soaps, biscuits).
·
Three-level channel:
Producer → Agent → Wholesaler → Retailer → Consumer
o
Example: Agricultural products like grains,
fruits.
3. Hybrid (Multichannel
Distribution)
·
A mix of direct and indirect methods.
·
Example: A brand selling its products through
its own website, but also through retailers
like Amazon or Flipkart.
·
Importance:
Expands reach while keeping some control over customers.
4. E-Channels (Digital
Channels)
·
Products are sold using online
platforms such as e-commerce sites, social media, or mobile
apps.
·
Example: Myntra, Amazon, or Instagram shopping.
·
Importance:
Cost-effective, wider reach, and convenient for tech-savvy customers.
5. Franchising and
Exclusive Channels
·
The producer allows a franchisee or exclusive
distributor to sell its products in specific regions.
·
Example: McDonald’s (franchise model), or luxury
brands with exclusive outlets.
·
Importance:
Ensures quality control and strong brand presence.
3. Channel Design
Channel design refers to the process of selecting the most suitable route to
move goods from producer to consumer. It involves:
·
Analyzing customer
needs – Understanding how customers prefer to buy (online,
retail shops, bulk orders, etc.).
·
Setting objectives
– Deciding on the desired market coverage (intensive, selective, or exclusive
distribution).
·
Choosing channel
members – Selecting wholesalers, retailers, e-commerce
platforms, or agents who can efficiently reach the target market.
·
Evaluating costs and
control – Balancing the expenses of distribution with the need
to maintain control over pricing and brand image.
·
Flexibility
– Designing a channel that can adapt to changes in consumer demand or market
conditions.
4.4 LOGISTICS: INTRODUCTION
1. Meaning of Logistics
·
Logistics
refers to the process of planning, implementing, and controlling the efficient
movement and storage of goods, services, and information from the point of
origin to the final consumer.
·
In simple terms, it ensures the right
product reaches the right customer,
at the right place, at the right
time, and in the right condition,
with minimum cost.
2. Features of Logistics
·
Flow of goods and
information – Manages both physical goods and related data
(like tracking and delivery updates).
·
Customer-focused
– Aims to provide satisfaction through timely delivery.
·
Integration
– Coordinates activities like transport, warehousing, packaging, and inventory
management.
·
Cost efficiency
– Reduces waste and optimizes resources to cut down expenses.
·
Flexibility
– Adapts to changes in demand, technology, or market conditions.
3. Importance of Logistics
·
Customer satisfaction:
Fast and accurate delivery improves trust and loyalty.
·
Market reach:
Helps expand into new markets by overcoming distance barriers.
·
Competitive advantage:
Better logistics can differentiate a company in terms of speed and reliability.
·
Cost reduction:
Efficient storage, transport, and inventory lower overall costs.
·
Supports supply chain:
Acts as the backbone of supply chain management, connecting production to
consumption.
4. Components of Logistics
·
Transportation
– Moving goods through road, rail, air, or sea.
·
Warehousing
– Safe storage of goods until they are needed.
·
Inventory management
– Keeping the right level of stock to meet demand without overstocking.
·
Packaging
– Protecting goods during handling and transit.
·
Order processing
– Ensuring quick and error-free order fulfillment.
·
Information management
– Using technology (like barcodes, GPS, ERP systems) for tracking and
coordination.
5. Types of Logistics
·
Inbound logistics
– Movement of raw materials from suppliers to the company.
·
Outbound logistics
– Distribution of finished products from company to consumers.
·
Reverse logistics
– Handling returns, recycling, or disposal of goods.
·
Third-party logistics
(3PL) – Outsourcing logistics activities to specialized
companies.
