Miscommunication

Chapter-2

2nd Meeting

Presentation OutlineElements of Marketing MixFormulating Communication StrategyPush Vs Pull StrategiesBudgeting and Planning Campaign

Elements of Communication MixPersonal SellingAdvertisingSales PromotionPublic RelationsDirect Marketing

1.Personal SellingIt consists of executing sells though

salespersons.It involves two way communication.It is very effective form of communication

and extensively used during the introduction of a new product in a market.

It is effective when the buyers need full explanation of product’s attributes, utilities and other associated benefits.

2.AdvertisingImpersonal method of communicating

message.Involves transmitting message to a large

number of potential buyer.Uses different form such as print, visual

(posters, hoardings etc.) and audiovisual media.

3.Sales PromotionRefers to short term promotional activities.Main purpose is to stimulate consumer

purchasing and dealer effectiveness.Consumer sales promotion methods

includes sample, coupons etc.Dealers promotion includes cash discount,

quantity discount, displays and advertising allowances etc.

4.Public Relations

It is used to promote favorable relationship with key stakeholders- media, government, community, customers etc. by charitable donation, sponsorship of event etc.

It is achieved though effective personal relationship, presentation of good corporate image, social responsiveness and charity works.

It also includes publicity.Publicity is communication of news storing

transmitted through mass media in the form of feature article, press conference etc.

5.Direct MarketingIt involves selling directly to consumers

bypassing all forms of marketing intermediaries.

Door to door marketing, telephone marketing, e-marketing etc.

Formulating Communication Strategy It comprises six step process

1. Understand the communication environment

The communication environment consist of sign, symbols, language and culture. So the communicators need to fully understand the those things.

2. Identify the target audience and their brand perceptionTo identify the target audience, communicators

should understand Demographic characteristics(age group, income,

gender etc.) Psychographic characteristics(life style, personality,

motivation etc) Media-graphic characteristic(media habit of target

audience-print, visual or audio visual)Brand perception Brand awareness and Brand image.

3. Determine the communication objectivesIt involves determining what the marketers

want to achieve through the communication, such as awareness, knowledge, liking, preference, conviction and purchase.

4. Select the message idea and creative platformMessage idea: the key communication

objective-informing, persuading, reminding and reassuring, should be identified.

Creative platform: It includes visualization, layout. Production etc.

5. Select appropriate communication channel6.Collect feedback.

Push Vs Pull StrategyPush strategy: The promotion is directed at the marketing

intermediaries to induce them to order and to carry the product and promote it to end user.

Generally through trade promotions.Pull strategy: A pull strategy involves marketing

activities(primarily advertising and consumer promotion) directed at end user to induce them to ask intermediaries for the product and thus induce the intermediaries to order the product from manufacturer.

Budgeting and Planning Campaign

Communication budgeting:Communicating budgeting is converting the communication plan into monetary value.

It involves determining the total allocation of monetary resources for various activities involved in conceiving , developing, releasing and evaluating promotional campaign.

Item of expenses for Marketing Communication.Research expenses(during the idea

generation—execution-post campaign phase effectiveness)

Development expresses: visualization, art direction and preparation of the ad copy.

Production(preparing communication material, cost of TV ads are very high)

Release (through the appropriate means of communication)

Administrative costs(salary, official cost etc)

Budgeting ApproachTop-down budgetingCommunication managers prepare the master budget.

Manager divides the total budget in terms of activities and brands and hands over the budget to different division for execution.

Bottom up budgetingcommunication department and ad agency personnel prepare brand specific budget.

Factors Affecting Budget sizeCommunication objectivesDesired convergeMedia used Nature of product(FMCG needs heavy

communication support but shopping goods can be advertised more selectively)

Stage of product life cycle(introduction stage needs heavy promotion)

Economic condition(economic boom stimulates more spending)

Size of the firm(big firms can spend more)

Communication CampaignIt includes a series of advertisements placed on a verity of media focused on achieving common communication goal.

A communication campaign is normally prepared for a period of one year.

Process of Campaign Planning1. Determine communication

objectives2. Identify target audiences and their

band perception3. Develop message and creative

strategy4. Develop media strategy5. Prepare budget6. Develop campaign plan.

Element of Campaign Management Research(product research, consumer

research, target market analysis and competitor analysis)

Target market assessment(on the basis of geographic, psychographic, demographic etc)

Creative strategy: visualization, layout, appeal section etc

Pre-testing: pre-tesing gives valuable feed back and helps avoid mistakes.

Media planning(selecting appropriate media)

Campaign impact assessment(during the advertisement and after the advertisement)

Budgeting StepsInformation collection: Information on the

firm’s sales, market share, promotional strategies etc.

Preparation(once the information is collected, communication manager prepares budget)

Approval: top level management may make adjustment on the budget and finally give their seal of approval.

Execution (determining communication program, strategy and tactics)

Control