Introduction to Advertising and Integrated Marketing

Communications (IMC)
Module I
 Session 1-2
Learning Outcome
• Explain IMC and marketing
communication mix; Classify
ATL/BTL/TTL strategies (Understand /
Apply)

Thi s Photo by Unknown author is licensed under CC BY-NC.

4 Ps of marketing or the
marketing mix
• Product: This includes all activities related to the
conception and planning of the actual design,
features, sizes, varieties, brand name, warranty,
guarantee and other services.
• Price: This area deals with activities related to
setting the price for a product. Decisions regarding
retail and wholesale prices, margins of channel
members, discounts and allowances, credit terms,
payment period, etc. are part of the ‘pricing’
function of the marketing mix.
• Place: Placement or distribution refers to all
activities involved in getting the product
to locations, inventory, transportation, etc.
• Promotion: Promotion refers to all activities
concerned with informing consumers about
an organization’s offering, persuading them to buy
it, and reminding them about it from time to time.
Activities like advertising, sales promotion, direct
marketing, public relations, personal selling and
other unconventional media comprise the ‘P’ of
promotion.
MARKETING COMMUNICATION
Marketing communication is an important P (also called promotion) of
marketing. It involves all activities concerned with effectively
communicating product information to selected target audiences.

A target audience is the group of consumers to whom marketing

communication messages are directed.

The prime purpose of communication is to seek a cognitive, affective or

behavioural response.

The communicator might want to imprint something into the consumer’s

mind (cognitive response), change an attitude (affective response) or get
the consumer to act (behavioural response).
 The Marketing
Communication Mix
• Marketing communications mix
is the set of all tools to promote
a product.
• A marketing communications
manager can choose from
various tools such as advertising,
sales promotion, public
relations, personal selling, direct
marketing, special events, etc.
 Mix Element Meaning (Short Summary) Examples

Paid, non-personal communication to

Advertising TV ads of Tata Neu, Amul topical ads, Jio 5G campaign
promote products through mass media.
Short-term incentives to encourage Big Billion Days (Flipkart), JioMart Festive Discounts,
Sales Promotion
purchase. DMart Weekly Offers
Brand-created or sponsored activities Zomato Feeding India Concert, Maruti Suzuki Auto Expo,
Events & Experiences
that engage customers. TCS Marathon
Public Relations & Unpaid media coverage and activities to Tata CSR flood-relief coverage, Infosys ESG reports in
Publicity build a positive brand image. media, IKEA sustainability stories
Directly reaching customers via email, Myntra SMS offers, PolicyBazaar WhatsApp reminders,
Direct Marketing
SMS, WhatsApp or catalogs. Swiggy email coupons
Interactive Two-way digital communication through Zomato/Swiggy chat support, MakeMyTrip chatbot, Tata
Marketing apps, websites, and social platforms. AIA interactive website tools

Word-of-Mouth Customer-driven recommendations and Boat product reviews on Amazon, Mamaearth influencer
Marketing organic reviews. reviews, Blinkit meme-based WOM

HDFC Bank relationship managers, Asian Paints home

Face-to-face selling and relationship-
Personal Selling visit consultants, Maruti Suzuki showroom sales
building by salespeople.
executives
Marketing Communication Activities

• We can divide activities or the marketing communication mix

into
• high- and low-control messages, as well as
• above- and below the-line activities.
 Basis of
ATL (Above-the-line) BTL (Below-the-line) TTL (Through-the-line)
Difference

Mass-media based promotional Non-media promotional activities Uses both ATL and BTL together in
Meaning
activities. with direct interaction. an integrated manner.

Large, mass audience, not Small, specific, well-defined target Targets mass as well as specific
Target Audience
specifically targeted. groups. segments.
To create engagement and
To build brand awareness and To create awareness and also
Purpose experience and stimulate
reach. encourage direct action.
immediate response.
Communication One-way communication Two-way interaction with Combination of both one-way and
Type (broadcasting message). customers. two-way communication.
Promotions at malls, sampling, Digital marketing, social media
TV ads, radio, newspapers,
Examples exhibitions, direct marketing, campaigns linking to sales events,
magazines, cinema ads.
trade shows, contests. integrated campaigns.
Balanced cost depending on
Cost Expensive. Cost-effective compared to ATL.
combination.

Effective for mass reach and Effective for conversions and Effective for both brand building and
Effectiveness
brand image building. engagement. sales.
ADVERTISING-Meaning

The word ‘advertising’ is derived from its Latin root ad verter, which
means ‘to turn towards’ or ‘to attract attention to’.

In this broad sense, it comprises all acts that are directed towards
drawing attention.

Advertising is any paid form of non-personal presentation &

promotion of ideas, goods, or services by an identified sponsor.
Characteristics of Advertising
The fact that it is ‘a paid form’ of presentation emphasizes that advertising space or time must be
purchased,

Its ‘non-personal’ nature emphasizes the fact that it is not a direct or personalized presentation to one
individual but to the masses,

'Presentation' signifies the format in which advertisement communicates

'Promotion’ indicates the objective of advertising and communication

'Identified sponsored' refers to the identification of the brand or the advertiser that is communicating.
 Advertising
INFORM PERSUADE

objectives

REMIND REINFORCE
 (2) 2010 Volkswagen Polo: 'Made in India -
Ground Clearance' TV commercial - YouTube

Advertising objectives
• Inform
• Let people know what the product is, where it would be
available, what problem it would solve, etc.
• This type of advertising aims to create awareness and
information of new products or new features of existing
products.
• Repeatedly the name of the product will be promoted.
• These ads include informing the market about price changes,
explaining the customers how the product works, describing
available services, correcting false impressions, reducing
buyers’ fears, building a company image..
• Words, such as “presents” and “latest” allude to new
introductions.
 Freedom Oil:
• Persuade [Link]

• Induce people to buy. This becomes more important as the

product grows or faces increasing competition.
• The advertiser now needs to give more reasons or enticements
to lure consumers.
• Aims to create liking, preference, conviction, and purchase of a
product or service.
• These types of ads will persuade the customers to purchase now,
building brand preferences, encouraging switching to their
brands, changing customer perceptions of product attributes.
• Some persuasive advertisers use comparative advertising, which
makes comparison of attributes of two or more brands.
• A television commercial for Captain Cook persuaded consumers
by depicting how its salt better flowing compared to Tata salt.
• Remind
• This kind of advertising is widespread with mature products –
products that are well past their introduction and rapid growth
phases.
• This type of advertising aims to stimulate repeat purchase of
products and services.
• Reminding customers that the product may be needed in the
near future, reminding customers where to buy the product,
keeping the product in customers’ minds during off seasons,
maintaining top-of-mind product awareness are some of the
objectives of reminder advertising.
• For example – Pepsi and Coca-Cola ads on television are
designed primarily to remind people about their brands, not to
inform about the brand.
• Amul butter is a brilliant example that illustrates the point. With
its witty, well-timed and creative print ads on current topics, it
stays on top-of-the-mind.
• Reinforce
• Reinforcement advertising
seeks to convince current
consumers that they have
made a right choice.
• These ads will reduce post
purchase dissonance in the
minds of customers.
• JK Tyre’s ad is reassuring
given the company’s claim
that the best cars use
Ranger.
Related to above major objectives there are following specific
objectives
• To make an immediate sale • To inform about a new product’s
availability, features or price
• To build primary demand • To increase frequency of use of a
• To introduce a price deal produce
• To increase numbers of quality of retail
• To inform about a product outlets
availability • To build over-all company image
• To build brand recognition or • To effect immediate buying action
brand insistence • To reach new areas or new segments of
• To help salesmen by building an population within existing areas To
develop overseas market
awareness of product among
• To increase market share
retailers
• To create a reputation for
 1. Brand-building advertising
2. Tactical advertising
3. National advertising
4. Retail advertising
5. Public service advertising
ADVERTISING TYPES 6. Corporate advertising
7. Advocacy advertising
8. Primary-demand advertising
9. Selective-demand advertising
10. Business-to-Business (B2B) advertising
11. Trade advertising
 Type of Advertising Description Indian Example
Creates long-term brand image and Cadbury Dairy Milk – “Kya swad hai zindagi ka” cricket
Brand-building Advertising
emotional connect stadium ad
Short-term, solves immediate
Limited-period discount offers by Amazon / Flipkart Festival
Tactical Advertising marketing issues (offers, discounts,
Sales
announcements)
Advertising across the country using Ads on Doordarshan / Sony / Times of India for brands like
National Advertising
national media Amul or Colgate
Done by local retail stores, store-level
Retail Advertising Local shop advertisement offering “Free Home Delivery”
promotions
Public Service Advertising Non-profit ads for public awareness Mumbai Traffic Police – “Wear Helmet” smashed egg print ad

Promotes corporate identity rather Coca-Cola ad about hiring specially-abled workers and
Corporate Advertising
than products conserving heritage monuments
Company takes a stand on a public Hutch “Mobile Manners – Bina Ijazat Photo Na Kheechain”
Advocacy Advertising
issue campaign
Primary-Demand Advertising Promotes an entire product category Initial Fair & Lovely ads promoting fairness creams category

Natural/herbal fairness creams differentiating with sun

Selective-Demand Advertising Promotes demand for a specific brand
protection & organic ingredients
Business-to-Business (B2B) Directed to businesses, not end Blue Star deep freezers promoted to ice-cream parlour
Advertising consumers owners
Advertising to wholesalers, Ads in trade magazines like Business India to influence
Trade Advertising
distributors, retailers channel partners
Integrated Marketing
Communications (IMC)
• It is a management concept that brings
together all tools of marketing
communication to send consistent messages
to target audiences.
IMC Tool Strengths (Very Brief) Weaknesses (Very Brief)
Advertising Mass reach; builds brand identity Expensive; media clutter
Sales Promotion Immediate sales boost Short-term; reduces loyalty
Direct Marketing Highly targeted; measurable Expensive; limited reach
Publicity / PR High credibility; low cost Low control; hard to measure
Internet Marketing Low cost; interactive; personalized Smaller reach; intrusive formats
Personal Selling Customized; relationship-building Very costly; not for mass reach
Packaging Strong last impression; attracts buyers Competitive clutter; small reach
Point-of-Purchase (POP) High-impact reminder; impulse buying Small audience; short life cycle
Specialties Personalized; targeted Small reach; costly
Sponsorship Goodwill; brand association; publicity Expensive; not measurable
Event Marketing Exciting; interactive; good publicity Expensive; small reach
Trade Shows Targeted visibility; interactivity Costly; exposes to competition
Customer Service Enhances satisfaction; differentiation Increases cost; quality must be monitored
The IMC
Model

The IMC model is a structured

approach that integrates all
marketing communication activities
to create a consistent message and
achieve effective communication
across all customer touchpoints.
Objectives: What the company wants to achieve. Objectives dictate
the course of action to be taken. For example, penetrate 20 per cent
of the company’s rural target audience

Strategy: A long-term plan of action designed to achieve the

objectives. For example, launch smaller pack sizes with reduced
prices, intensify rural distribution, etc.

Tactics: Immediate actions with resources at hand; short-term

isolated events to take advantage of opportunities at hand. For
example, pack products in plastic pouches of 25 gm. priced at Rs. 5,
appoint 3 new distributors to handle target audience territories, etc
 THE IMC
PLANNING
PROCESS

IMC is a systematic process of

planning, integrating,
executing, and evaluating all
marketing communication
tools to deliver a consistent
message and achieve
communication objectives.
Steps of IMC Process Brief Description
Study market conditions, audience, competitors, product, and past promotions
1. Situational Analysis
to understand current communication environment.

Determine what communication issue needs to be solved (e.g., low awareness,

2. Identify Problem or Opportunity
poor image) or opportunity to be leveraged.

Decide what the IMC program aims to achieve (awareness, interest, attitude
3. Set Communication Objectives
change, purchase).

Decide how much money will be allocated to marketing communication

4. Determine Budget
activities.

Select target audience, choose communication mix (advertising, PR, digital,

5. Develop IMC Strategies
promotions), design message and media strategy.

Execute communication activities, coordinate teams, schedule tasks, and

6. Implement the Plan
monitor progress.

Measure performance against objectives, check effectiveness, and identify

7. Evaluation & Control
improvements for future campaigns.
Classroom Discussion
• Why is it important to understand the objectives of advertising
before starting a campaign?
• Provide examples of ATL, BTL, and TTL advertising strategies.
 The Role of IMC in the
Marketing Process
Session 3-4

Explain IMC role in marketing; Apply/Analyze positioning and

repositioning (Understand / Apply/Analyze)
Marketing and Promotions Process Model
 Opportunity Analysis
• A careful analysis of the marketplace should
lead to alternative market opportunities for
existing product lines in current or new
markets, new products for current markets,
or new products for new markets.
• Market opportunities are areas where there
are favorable demand trends, where the
company believes customer needs and
opportunities are not being satisfied, and
where it can compete effectively.
• Many auto companies are now competing in
the hybrid car market, offering a variety of
models.
Competitive Analysis
An important aspect of marketing strategy development is the search for a competitive advantage, something
special a firm does or has that gives it an edge over competitors.

Ways to achieve a competitive advantage include having quality products that command a premium price,
providing superior customer service, having the lowest production costs and lower prices, or dominating
channels of distribution.

Competitive advantage can also be achieved through advertising that creates and maintains product
differentiation and brand equity.

The cigarette manufacturer ITC too has the highest market share because of its excellent distribution network
that services almost everyday panwallas and wayside cigarette selling shops run by poor people who cannot
afford to stock more.

Similarly, Apple’s competitive advantage lies in its design, Maggi’s in its taste, Lux’s in its glamourous ‘celebrity’
image
Target Market Selection Process
 • Target market identification isolates
consumers with similar lifestyles, needs, and
the like, and increases our knowledge of
their specific requirements.
• The more marketers can establish this
Identifying Markets common ground with consumers, the more
effective they will be in addressing these
requirements in their communications
programs and informing and/or persuading
potential consumers that the product or
service offering will meet their needs.
Market Segmentation
• Segmentation divides a large market into smaller
and more manageable submarkets in order to
identify homogeneous markets (consumer groups)
that
• are similar in their needs and
reactions to a company’s marketing
activities, and
• are considerably different from other
such groups in the market
• For example, not everybody who buys a car has the
same needs and wants. Some consumers want
small and economical cars that are city slickers,
others want mid-size cars that can seat larger
families, still others want small utility vehicles that
can transport goods, top company executives want
luxurious cars.
Bases of
Description Indian Examples
Segmentation

Parle-G stronger in rural & Tier 2/3 markets; Thums Up

Geographic Dividing the market based on location,
more popular in South India; Himalaya targeting North &
Segmentation climate, and region-specific preferences
colder regions

Segmentation based on population

Demographic Dove targeted to women; LIC schemes based on
characteristics like age, gender, income,
Segmentation age/income
education

Psychographic Based on lifestyle, personality, values, Royal Enfield for adventure seekers; FabIndia for ethnic
Segmentation interests, and attitudes lifestyle; [Link] for fitness-oriented consumers

Amazon Prime for heavy online shoppers; Nescafé targeting

Behavioristic Based on usage level, loyalty, purchasing
habitual coffee drinkers; Paytm cashback offers for repeat
Segmentation frequency, and buyer readiness
users

Sensodyne for sensitive teeth; Dettol for hygiene

Benefit Dividing the market based on benefits or
protection; Durex for safety & comfort; Volini for quick pain
Segmentation value sought by consumers
relief
 Selecting a Target Market
• The next phase in the target marketing process involves two steps:
1. Determining how many segments to enter and
• Undifferentiated marketing involves ignoring segment differences and offering just one
product or service to the entire market. For example, For many years, Coca-Cola offered
only one product version.
• Differentiated marketing involves marketing in a number of segments, developing
separate marketing strategies for each. For example, the Marriott hotel chain offers a
variety of customer services for different travelers including vacation, business, long or
short stay, and so forth.
• Concentrated marketing, is used when the firm selects one segment and attempts to
capture a large share of this market. For example, Rolls Royce has focused its automobile
business exclusively on the high-income segment, while L’Oreal competes in the
cosmetics and beauty segment.
2. Determining which segments offer the most potential.
• selecting a market involves determining the most attractive segment. The firm must
examine the sales potential of the segment, the opportunities for growth, the
competition, and its own ability to compete. Then it must decide whether it can market to
this group.
Market Positioning
• It is nothing but creating an image in
the consumer's mind
• Positioning means creating a clear,
unique, and desirable place for a brand
in the consumer’s mind relative to
competitors. It highlights what makes
the brand different and valuable.
• E.g. (Health Drink Market)
1. Boost- Secret of my energy
2. Complan- Complete planned food for growing
children (Complan 2X Faster Growth - ग्रोथ जो रखे
आगे)
3. Horlicks- The great nourisher with extra calcium
(Horlicks Women’s PLUS gives you 100% of your
Daily Calcium and Vitamin D)
Positioning Approaches
(Developing A Positioning Strategy)

• Positioning by Customer benefit (Opple LEDs)

• Positioning by Price, Quality (Patanjali Honey) Patanjali Honey | Product by
Patanjali Ayurveda - YouTube
• Positioning by Application (Vicks VapoRub)
• Positioning by Product user (Lux)
• Positioning by Product class (Volkswagen)
VW Brand [Link] - YouTube
• Positioning by cultural symbols (Air India- Maharaja)
• Positioning by competitors (ad comparison)
Positioning Approaches (Developing A Positioning Strategy)

Strategy Brief Description Examples

Product Attributes / Highlighting unique features or Colgate Strong Teeth – “Calcium-rich
Benefits benefits protection”
Premium quality or high value at low Tata Tea Gold (premium); DMart (value
Price / Quality
price pricing)
Fevicol for strong, long-lasting bonding; Surf
Use / Application Based on specific usage situations
Excel for active kids
Competing with alternative product
Product Class Ola / Uber as alternative to owning a car
categories
Bournvita for growing children; Mamaearth
Product User Associated with specific user group
for new-age parents
Colgate vs Pepsodent ads; Flipkart vs Amazon
Competitor Direct comparison to beat rival
festive sale fight
Cultural Symbols Using cultural icons for instant recall Amul Girl; Air India’s Maharaja
Changing brand image to stay Maggi post-2015 trust-building; Tanishq
Repositioning
relevant shifting to modern jewelry
• Repositioning
• One final positioning strategy involves altering or changing a product’s or
brand’s position.
• Brand repositioning is about changing the way that customers view your
company.
• Changing the brand’s image to stay relevant or target new segments.
• Repositioning a product usually occurs because of declining or stagnant sales
or because of anticipated opportunities in other market positions.
• Repositioning is often difficult to accomplish because of entrenched
perceptions about and attitudes toward the product or brand.
• Examples:
• Maggi repositioning after the 2015 ban, focusing on safety and trust.
• Tanishq repositioned from premium wedding jewelry to modern, everyday
wear jewelry.
Maggi Repositioning (India, post-2015 ban):
After the nationwide ban due to
alleged safety concerns, Maggi
repositioned itself by focusing on trust,
safety, and quality reassurance.
The brand launched emotional
comeback campaigns (e.g.,
“#WelcomeBackMaggi”) highlighting
rigorous testing, regulatory approvals,
and the nostalgic bond Indians share
with Maggi, successfully shifting its
image from crisis-hit to a trusted, safe
household staple again.
Purpose of the Marketing Planning
Program

• Once the firm identifies its target

market and positioning, it must
assemble the marketing mix (4Ps)
into one unified program.
• The goal is to ensure every
element—product, price, place,
and promotion—communicates a
consistent message and supports
the IMC strategy.
Market mix strategy
 Product Decisions
• A product is a bundle of benefits—functional, emotional, and symbolic.
• Consumers often buy products because of what they represent, not just
what they do.
• What product decisions include:
• Product design & quality
• Brand name and identity
• Packaging
• Services and warranties
• Examples
• Tata Tea Gold uses premium aroma to communicate quality.
• Raymond positions its fabric as symbol of trust and sophistication.
• Amul Butter packaging and branding reinforce Indian family values.

Thi s Photo by Unknown author is licensed under CC BY.

 Product symbolism

• Marketing a product is the

very reason why a company
devises various strategies.
Product symbolism – ‘the
sum total of what a
product or brand means to
consumers and what they
experience in purchasing
and using it
BRANDING
• Branding is about building and maintaining a favorable identity and image
of the company and/or its products or services in the mind of the
consumer.
• The goal of branding is to
(1) build and maintain brand awareness and interest,
(2) develop and enhance attitudes toward the company, product, or service and
(3) build and foster relationships between the consumer and the brand.
• The brand identity consists of the combination of the name, logo, symbols,
design, packaging, and image of associations held by consumers.
• Think for a minute about the ads for Nike; the product benefits and attributes are
usually not even mentioned—yet information about the brand is communicated
effectively.
• One important role of advertising in respect to branding strategies is creating and
maintaining brand equity, which can be thought of as an intangible asset of added value
or goodwill that results from the favorable image, impressions of differentiation, and/or
the strength of consumer attachment to a company name, brand name, or trademark.
• Brand equity allows a brand to earn greater sales volume and/or higher margins than it
could without the name, providing the company with a competitive advantage.
• Branding aims to:
• Build awareness
• Form positive attitudes
• Create consumer–brand loyalty
• The strong equity position a company and/or its brand enjoys is often reinforced
through advertising.
• For example, Rolex watches command a premium price because of their high quality as
well as the strong brand equity they have developed through advertising
• Examples
• Tanishq focuses on trust and purity in gold.
• Royal Enfield builds a strong personality-based brand identity.
• Asian Paints uses “Har Ghar Kuch Kehta Hai” to build emotional bonds.
 Packaging
• Traditionally, the package provided functional benefits such as economy, protection, and storage.
• One study estimated that as many as two-thirds of all purchases made in the supermarket are unplanned.
The package is often the consumer’s first exposure to the product, so it must make a favorable first
impression. A typical supermarket has more than 30,000 items competing for attention.
• Packaging roles:
• Grabs attention
• Conveys usage and contents
• Communicates promotions
• Creates shelf impact
• Moreover, many firms design the package to carry a sales promotion message such as a contest,
sweepstakes, or premium offer.
• Examples
• Paper Boat uses nostalgic storytelling through packaging.
• Patanjali uses earthy, simple packaging to signal Ayurveda and purity.
• Kissan Jam uses bright, fruit-rich visuals to attract kids.
 Price Decisions
• The price is discussed in terms of the dollar amount exchanged for an item, the cost
of a product to the consumer includes time, mental activity, and behavioral effort.
• From an IMC perspective, the price must be consistent with the perceptions of the
product, as well as the communications strategy.
• Higher prices, of course, will communicate a higher product quality, while lower
prices reflect bargain or “value” perceptions.
• A product positioned as highest quality but carrying a lower price than competitors
would only confuse consumers.
• In other words, the price, the advertising, and the distribution channels must
present one unified voice speaking to the product’s positioning.
• Relating Price to Advertising and Promotion Factors such as product quality,
competition, and advertising all interact in determining what price a firm can and
should charge.
• Studies have shown that pricing and advertising strategies go together. High relative ad
expenditures should accompany premium prices, and low relative ad expenditures
should be tailored to low prices.
• These results obviously support the IMC perspective that one voice must be conveyed.
• In a recent and comprehensive study, it was shown that exposure to television ads
reduces consumers’ tendencies to react to price changes.
• The study further showed that heavy users of the product category were most likely to
have their sensitivities reduced
• Alignment with IMC
• High price → premium advertising tone
• Low price → value communication
• Indian Examples
• Maruti Suzuki Alto: Value positioning supported by affordable pricing.
• Taj Hotels: Premium pricing aligned with luxury communication.
Distribution Channel Decisions
• Distribution ensures availability when and where consumers want the
product.
• Channel Types:
• Direct channels: Online stores, company outlets (e.g., Nykaa, Lenskart)
• Indirect channels: Wholesalers + retailers (FMCG companies)
• Why it matters:
• Place also communicates brand image.
Selling in premium stores signals quality; selling in discount stores signals
value.
• Indian Examples
• DMart distribution emphasizes convenience + low cost.
• FabIndia stores reflect brand identity (ethnic, handcrafted).
Developing
Promotional
Strategies: Push or
Pull?
• PUSH STRATEGY
• A push strategy focuses on persuading intermediaries (trade partners) to
stock, promote, and sell the product. The manufacturer pushes the product
down the distribution channel.
• Key Activities
• Sales reps visit resellers to explain the product and company plans.
• Offer introductory discounts, promotional allowances, and co-op advertising.
• Use trade advertising in industry publications to motivate
wholesalers/retailers.
• Examples
• HUL (Hindustan Unilever) gives retailers margin schemes on Surf Excel, Rin,
and Lux to ensure high stocking.
• Coca-Cola India runs trade contests (“Dealer of the Month”) to encourage
aggressive placement and visibility.
• PULL STRATEGY
• A pull strategy targets end consumers directly through advertising and
promotions to create demand. Consumers pull the product through the
retail channel by requesting it.
• Key Activities (from your content)
• Heavy advertising
• Consumer sales promotions
• Brand-building campaigns that stimulate demand
• Indian Examples
• Maggi uses strong advertising and nostalgia-based campaigns, pulling
consumers to ask for it by name.
• Parachute Coconut Oil creates emotional, trust-oriented ads, ensuring
customers specifically ask for “Parachute.”
• Combined Strategy (Most Common in India)
• Many Indian companies—like HUL, ITC, Marico, Dabur—use both push
and pull, adjusting emphasis by product type and market conditions.
• Example: Pepsi India
• Push: Display bonuses, refrigerator placements, retailer incentives.
• Pull: Celebrity campaigns (Salman Khan, Ranbir Kapoor), IPL
sponsorships, mass advertising.
• This ensures retailers want to stock Pepsi and consumers want
to buy Pepsi.
ROLE OF ADVERTISING & PROMOTION IN THE MARKETING
PROGRAM
• Advertising and promotion help communicate:
• What the product is
• Why it matters
• Where it is available
• What value it offers
• All IMC tools must deliver one consistent message across media.
• Examples
• Fevicol uses humorous, memorable ads reinforcing brand strength for
decades.
• Airtel aligns pricing, product offers, and large-scale advertising for
consistency.
 The consumer decision-
making process -
The buying decision process

Module 1 (Session 5-6)

Page: Belch Chapter 4- 112-131
Learning outcome- Illustrate buying
decision process; Analyze psychological
influences (Understand / Analyze)
AN OVERVIEW OF CONSUMER BEHAVIOR
• Consumer behavior can be defined as the process
and activities people engage in when searching for,
selecting, purchasing, using, evaluating, and disposing of
products and services so as to satisfy their needs and desires.
• Marketers need to understand how consumers
gather information regarding various alternatives and use
this information to select among competing brands, and
how they make purchase decisions.
• Where do they prefer to buy a product?
• How are they influenced by marketing stimuli at the point of
purchase?
• Marketers also need to understand how the consumer
decision process and reasons for purchase vary among
different types of customers.
 A Basic Model of Consumer Decision Making
• The consumer’s purchase decision process is generally viewed as consisting of stages
through which the buyer passes in purchasing a product or service.
• This model shows that decision making involves a number of internal psychological
processes. Motivation, perception, attitude formation, integration, and learning are
important to promotional planners, since they influence the general decision-making
process of the consumer. Marketers influence both.
• A Basic Model of Consumer Decision Making consisting of 5 Behavioral Stages and 5 Internal
Psychological Processes.
Problem Recognition
• Occurs when the consumer perceives a gap between
actual state and ideal state.
• Sources of Problem Recognition:
• Out-of-stock (need to replenish)
• Dissatisfaction (product no longer satisfactory)
• New needs/wants (life changes)
• Related product purchase (accessories, upgrades)
• Marketer-induced recognition (advertising creates dissatisfaction)
• New products (innovation reveals new problems)
• Examples
• Mobile battery draining → need for new phone
• Advertisement highlighting body odour → deodorant purchase
• Note that problem does not always imply a negative state.
• A goal exists for the consumer, and this goal may be the
attainment of a more positive situation
• Examining Consumer Motivations
• Problem recognition may be simple, but how consumers perceive
the problem and what motivates them shapes the entire decision
process.
• The same product need can be viewed differently by different
consumers (e.g., a watch as a functional tool vs a fashion
statement).
• These differences lead consumers to focus on different criteria such
as price, reliability, design, or brand image.
• Therefore, marketers study consumer motives to understand why
consumers act and to design effective marketing strategies.
• Some of the Marketing Research Methods Used to Probe the Mind
of the Consumer
Maslow’s Hierarchy of Needs
• Abraham Maslow proposed that consumer
motivation is driven by a hierarchy of needs,
arranged from basic to higher-level needs.
• The five levels are:
• Physiological needs – food, shelter, clothing
• Safety needs – security and protection
• Social needs – love, belonging, relationships
• Esteem needs – status, recognition, self-respect
• Self-actualization – self-fulfilment and personal growth
• Lower-level needs generally require satisfaction
before higher-level needs influence behaviour,
though movement is not strictly step-by-step.
• In modern markets, where basic needs are largely
met, marketers appeal to higher-order needs
(social, esteem, self-actualization) even when
selling basic products.
• Example: Huggies diapers appeal to parent–child
love and bonding rather than just basic hygiene.
 Maslow’s Hierarchy of Needs
Maslow Need Level Indian Product / Brand Example Why It Fits This Need

Provides basic sustenance and

Physiological Amul Milk, Tata Salt, Britannia Biscuits
body needs

LIC Life Insurance, Eureka Forbes Water Purifier, Offers protection, health, and
Safety
Bajaj Helmet security

Whisper Sanitary Pads advertising comfort &

Promotes relationships,
Social / Belonging acceptance, Tinder / Bumble (social apps),
acceptance, peer identity
Fastrack watches

Titan Raga watches, Audi / BMW cars, Lakmé Status, recognition, self-respect,
Esteem
cosmetics prestige

Coursera / UpGrad courses, Himalayan Trekking Personal growth, learning,

Self-actualization
Tours achieving potential
Information Search
• Once the problem is recognized, consumers search for information.
• Types of Information Search:
• Internal Search – memory, past experience (If the internal search does not yield
enough information, the consumer will seek additional information by engaging in external
search.)
• External Search:
• Personal (friends, family)
• Marketer-controlled (commercial)- (ads, websites, salespeople)
• Public (reviews, reports)
• Experiential (trial, test use)

• Marketing implication: Advertising is most important at this stage to

provide information.
Perception
• Marketers are particularly interested in
1. how consumers sense external information,
2. how they select and attend to various sources of information,
and
3. how this information is interpreted and given meaning.
• These processes are all part of perception, the process by which
an individual receives, selects, organizes, and interprets
information to create a meaningful picture of the world.
• Perception is an individual process; it depends on internal factors
such as a person’s beliefs, experiences, needs, moods, and
expectations.
• The perceptual process is also influenced by the characteristics of a
stimulus (such as its size, color, and intensity) and the context in
which it is seen or heard.
• Sensation is the immediate, direct response of the senses
(taste, smell, sight, touch, and hearing) to a stimulus such as an ad,
package, brand name, or point-of-purchase display.
• Perception involves three distinct processes
1. Sensation is the immediate, direct response of
the senses (taste, smell, sight, touch, and hearing)
to a stimulus such as an ad, package, brand name,
or point-of-purchase display.
2. Selecting Information- whether marketing stimuli Thi s Photo by Unknown author is licensed under CC BY-NC.

will be attended to and how they will be

interpreted include internal psychological factors
such as the consumer’s personality, needs,
motives, expectations, and experiences.
3. Interpreting the Information Once a consumer
selects and attends to a stimulus, the perceptual
process focuses on organizing, categorizing, and
interpreting the incoming information.
 The Selective Perception Process

• Selective perception may occur at the exposure, attention, comprehension, or retention stage of
perception.
• Mnemonics such as symbols, rhymes, associations, and images that assist in the learning and memory
process are helpful. (Remembering Airtel’s jingle or Amul girl visuals)
Stage Meaning Example
Consumers choose which messages to Skipping TV ads or closing YouTube ads
Selective Exposure
expose themselves to and avoid others while watching videos
Consumers focus on only a few stimuli Noticing a “50% OFF” sign in a mall but
Selective Attention
from all messages they see ignoring other posters
Selective Consumers interpret messages based on Interpreting Patanjali ads as “healthy” due
Comprehension beliefs, attitudes, and experience to belief in Ayurveda

Consumers remember only part of the Remembering “Daag Achhe Hain” but
Selective Retention
information they are exposed to forgetting Surf Excel’s full message
Use of symbols, rhymes, images to aid Remembering Airtel’s jingle or Amul girl
Role of Mnemonics
memory retention visuals
Color is used to attract
attention to VO5
Subliminal Perception
• One controversial tactic advertisers have been
accused of using is appealing to consumers’
subconscious.
• Subliminal perception refers to the ability to
perceive a stimulus that is below the level of
conscious awareness.
• Psychologists generally agree it is possible to • Titan Raga / Titan Watches
perceive things without being consciously aware of
them. • Subliminal cue: Elegance, confidence, self-worth,
Minimal dialogue, strong visuals
Subliminal Cues in Music & Stores
• Example: • Hidden message: Wearing Titan = class, success,
• Soft French music in a wine store → increases self-esteem
purchase of French wine • Key idea: Status and identity are
• Slow music in supermarkets → customers walk
slower and buy more communicated without direct claims.
• Why subliminal: Consumers notice music, but not its
behavioral influence.
Alternative Evaluation
• In this stage, the consumer compares the various brands or products
and services he or she has identified
• The evoked set is generally only a subset of all the brands of which
the consumer is aware. The consumer reduces the number of
brands to be reviewed during the alternative evaluation stage to a
manageable level.
• After forming an evoked set, consumers evaluate brands
using evaluative criteria—key attributes important to them.
• Evaluative criteria may be:
• Objective (price, warranty, fuel efficiency)
• Subjective (image, style, performance)
• While marketers view products as bundles of attributes,
consumers focus more on consequences or outcomes of
use.
• Two types of consequences:
• Functional consequences – tangible, directly experienced
outcomes (taste, speed, durability).
• Psychosocial consequences – intangible, personal outcomes
(feelings, self-image, social approval).
• Two subprocesses are very important during the alternative
evaluation stage:
1. the process by which consumer attitudes are created,
reinforced, and changed and
2. the decision rules or integration strategies consumers use to
compare brands and make purchase decisions.
Attitude formation
• Attitudes are learned predispositions reflecting a consumer’s overall
evaluation and feelings toward an object such as a brand, company,
product category, store, endorser, or advertisement.
• Attitudes are important because they summarize positive or negative
feelings and are closely linked to purchase behavior.
• Marketers use advertising and promotion to create, reinforce, or
change consumer attitudes.
• Multiattribute Attitude Model
• Consumers form attitudes based on multiple attributes of a brand.
• Each attribute is evaluated based on:
• Belief (Bi): how well the brand performs on the attribute
• Importance (Ei): how important that attribute is to the consumer
• Overall attitude = sum of (belief × importance) across attributes.
• Only salient beliefs (important, activated attributes) influence attitudes,
and these vary by segment, time, and situation.
• Consumers hold many beliefs about a brand, but they cannot process all of them
at once.
• During evaluation, consumers focus only on beliefs that are most relevant to their
current need or situation.
• These selected, influential beliefs are called salient beliefs.
• Other beliefs remain inactive in memory and do not affect the attitude or decision.
• Example:
• A consumer knows a smartphone brand is stylish, expensive, durable, and has a
good camera.
• If buying for photography, only camera quality becomes salient.
• If buying for budget, price becomes the salient belief.
• Consumers simplify decisions by activating only the most relevant beliefs
at the time of purchase.
• Key Insight: Marketing messages should focus on the salient beliefs that
matter most to the target segment
Attitude Change Strategies
1. Increasing or changing belief strength on an important attribute
(Jio ads repeatedly saying “Fastest 5G in India” so customers believe
Jio = best network)
2. Changing the importance of an attribute (MRF Tyres shifting focus
from price to safety by saying “Tyres are life-saving, not just
rubber”)
3. Adding a new attribute to evaluation (Tata Nexon adding “5-star
safety rating” so customers consider safety while buying a car)
4. Changing beliefs about competing brands (Hyundai showing its
cars have features similar to premium brands like Honda or Toyota)
 Integration Processes and Decision Rules
• Integration processes explain how consumers combine product knowledge,
meanings, and beliefs to evaluate and choose among brands.
• Consumers use different decision rules to make purchase decisions.
• Types of Decision Rules:
• Formal decision rules: Consumers carefully compare brands attribute by attribute
(price, quality, features). Used in important or high-involvement purchases.
• Heuristics (simplified rules): Quick decision shortcuts used for frequently purchased
or familiar products, such as:
• Price-based (buy the cheapest) and
• Promotion-based (buy the brand on offer)
• Affect referral rule: Choice based on overall feeling or impression of a brand rather
than detailed evaluation.
• Marketing Implication: Strong brands rely on emotional appeal and brand
image, while detailed information supports rational evaluation.
Purchase Decision
• At this stage, consumers stop searching and evaluating alternatives and form a purchase
intention toward a specific brand.
• Purchase intention results from matching consumer motives with brand attributes and
is influenced by motivation, perception, attitudes, and integration processes.
• A purchase decision is different from the actual purchase. After choosing a brand,
consumers still decide when, where, and how much to buy.
• For high-involvement products (cars, laptops, durables), there is often a time gap
between decision and purchase.
• For low-involvement, nondurable products (FMCG), the decision and purchase may
occur almost simultaneously, often in-store.
• Brand loyalty plays a key role—consumers repeatedly buy preferred brands and may
even plan purchases in advance.
• Marketing implication:
• Build and maintain brand loyalty through reminder advertising, strong shelf presence, packaging,
and promotions.
• Ensure top-of-mind awareness at the point of purchase to influence last-moment decisions.
Postpurchase Evaluation
• The consumer decision process continues after purchase when the
product or service is used and evaluated.
• Consumers compare actual performance with expectations:
• Satisfaction → expectations met or exceeded
• Dissatisfaction → performance below expectations
• Postpurchase evaluation influences future behavior:
• Satisfaction → brand retained in the evoked set and repeat purchase
• Dissatisfaction → negative attitudes and possible brand rejection
• Cognitive dissonance may occur after important purchases, creating
post purchase doubt, especially when alternatives were similar.
• Consumers reduce dissonance by:
• Seeking reassurance from others
• Justifying their choice
• Ignoring negative information
• Paying more attention to supportive advertising
• Marketing implication:
• Use post purchase communication, reminder advertising, customer support,
easy returns, warranties, and guarantees to reinforce satisfaction.
• Handle dissatisfaction effectively to retain customers and build loyalty.
Learning
• Behavioral learning theories emphasize the role of external, environmental
stimuli in causing behavior; they minimize the significance of internal
psychological processes.
• The basic principles of two behavioral learning theory approaches:
• Classical Conditioning: Consumers form positive brand associations by pairing a brand
with pleasant stimuli (e.g., music, emotions, images).
• Operant (Instrumental) Conditioning: Behavior is shaped by rewards or punishments;
positive outcomes increase repeat purchase, negative outcomes reduce it.
• Reinforcement, the reward or favorable consequence associated with a
particular response, is an important element of instrumental conditioning.
• Behavior that is reinforced strengthens the bond between a stimulus and a
response. Thus, if a consumer buys a product in response to an ad and
experiences a positive outcome, the likelihood that the consumer will use this
product again increases. If the outcome is not favorable, the likelihood of
buying the product again decreases.
• Thus, it may be important for companies to advertise to reinforce consumer
decisions to purchase their brands.
 Summary Table
Decision Stage Psychological Process
Beauty Product Example Explanation
(What Consumer DOES) (What Happens in the MIND)
Desire for glowing skin and
Problem Recognition Notices dull and dry skin Motivation
confidence
Checks Nykaa, YouTube Interprets brands as natural,
Information Search Perception
reviews premium, or chemical
Compares Lakmé, Plum, Develops liking for brands
Alternative Evaluation Attitude Formation
Mamaearth with good reviews
Combines price, ingredients,
Purchase Decision Buys Plum face cream online Integration
and brand trust
Satisfaction leads to repeat
Postpurchase Evaluation Checks results after use Learning
purchase

• The decision-making stages show what consumers do, while psychological processes explain why
they do it-both work together in every purchase.
• Consumers act through stages, but their decisions are driven by internal psychological processes.