BBA I SEM- FUNDAMENTALS OF MARKETING - UNIT IV (STUDY NOTES) LATEST SYLLABUS

 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.