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    MARKETING COMMUNICATIONS STRATEGY

    Mar 1S2 Mrs. S. Peeroo

    1

    INTRODUCTION

    Marketing can be defined as a social and managerial process by which individuals and

    groups obtain what they need and want through creating and exchanging products and

    value with others. So marketing looks at the customer needs and the ability of the

    company to satisfy them. Thus, marketing plays a key role in the strategic planning of thecompany. The strategic plan defines the companys overall mission and objectives. Then

    the marketer must decide on the marketing mix, which will enable the company to reach

    its objectives. We define marketing mix as the set of controllable, tactical marketing tools

    that the firm blends to produce the response it wants in the target market. In simpler

    terms the marketing mix is everything the firm can do to influence the demand for its

    product. There are 4 variables, which marketers can use and they are known as the 4 Ps:

    product, price, place and promotion. A marketing mix means that the business must have

    a high-quality product, for sale at a price that is reasonable and at places where people

    can easily buy it. Promotion informs customers about the product and tries to encourage

    them to buy. In this module we are going to study in detail the 4 th P i.e. promotion.

    Promotion means activities that communicate the merits of the product and persuadetarget consumers to buy it. Promotion is also known as Marketing Communications.

    The marketing communications mix also known as the promotion mix consists mainly of

    tools, which are used to communicate to the customers. They are namely advertising,

    sales promotion, direct marketing, personal selling and Public Relations.

    Integrated marketing communications can be defined as the strategic choice of elements

    of marketing communications, which will influence transactions between an organisation

    and its customers effectively and economically. Integrated marketing communications

    involves coordinating the various promotional elements and other marketing activities

    that communicate with a firms customers. The aim of integrated marketing

    communications is to present a consistent image and consistent message to customers.

    In this module we are going to learn how to plan a promotional campaign, how to

    implement and evaluate the campaign. We will also see the various tools available to

    marketers to communicate to their customers.

    Definition of Marketing Communications

    Promotion can be defined as the coordination of all seller initiated efforts to set up

    channels of information and persuasion to sell goods and services or promote an idea.

    1. Functions of Marketing CommunicationsIn general terms the purposes of marketing communications are

    To inform customers: to provide them with information about the availability of a

    product, its contents and its design.

    To persuade consumers: to tell them that the product that they have purchased or that

    they are about to buy is the best one.

    To remind consumers: To tell them that the product that they last used was of that

    particular name.

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    Without an effective promotional effort, even the best conceived products at the most

    attractive prices will hardly attract customers and will stay on the shelves.

    Elements of promotional strategy.

    Promotional strategy is the process of developing and maintaining a communications mixthat utilizes company resources to their full potential in a way that is competitively

    attractive to target markets while contributing to the companys short run and long run

    marketing and organizational goals.

    Advertising is a paid non-personal communication from an identified sponsor using

    mass media to persuade or influence an audience.

    Sales promotion consists of short-term incentives to encourage purchase or sales of a

    product or service.

    Personal selling can be defined as a personal presentation by the sales force of a firm forthe purpose of making sales and building customer relationships.

    Direct marketing consists of direct communications with carefully targeted individual

    consumers to obtain an immediate response.

    Public Relations: Building good relations with the companys various publics by

    obtaining favourable publicity, building up a good corporate image, and handling or

    heading off unfavourable rumours, stories and events.

    Promotional management: It involves coordinating the promotional mix elements to

    develop a controlled, integrated program of effective marketing communications.

    Promotion is all those means by which marketers communicate to their target market. To

    be able to design the proper promotional mix the marketer must have a sound knowledge

    of what promotion can and cannot do and knowledge of the nature of each tool.

    Promotion can:

    communicate product benefits to consumers

    help to increase sales

    create awareness and establish favourable attitudes towards new products

    help to create brand preference among consumers

    help to secure distribution in outletshelp to obtain greater cooperation and support from middlemen

    Promotion cannot:

    make consumer buy a product for which there is no need perceived

    persuade consumers that a product is superior when consumer experience with the

    product reveals the opposite.

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    influence consumers to pay a higher than reasonable price when there is no greater

    value perceived by them.

    convince buyers to make extraordinary shopping efforts when competitive products

    are readily available at local outlets.

    So a promotional strategy no matter how brilliantly conceived, no matter how creatively

    executed cannot be expected to overcome fundamental weaknesses in the rest of themarketing strategy.

    Impact of the environment on the promotional strategy

    Before sending messages to the consumers, the promotional planner must analyze the

    different factors that will affect its promotional campaign. These factors are found in the

    environment of the company. The environment may facilitate or restrict the success of a

    given strategy. The environment is dynamic. The environmental context of promotion

    can be viewed at 2 levels depending on the degree of control the company may exercise

    over individual factors.

    External Environment

    The external environment is uncontrollable by the individual company. (PEST)

    The macro-environment e.g. Political (and legal) forces, Economic forces, Sociocultural

    forces, and Technological forces. These are known as PEST factors.

    Political and Legal Factors

    The political arena has a huge influence upon the regulation of businesses, and the

    spending power of consumers and other businesses. You must consider issues such as:

    1.How stable is the political environment?

    2.Will government policy influence laws that regulate or tax your business?

    3.What is the government's position on marketing ethics?

    4. What is the government's policy on the economy?

    5. Does the government have a view on culture and religion?

    6. Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or

    others?

    Food Act, Laws and rules concerning advertisements, international relationships

    Government legislates on matters such as price controls, equal employment opportunity,safety and health at work, the amount of noise that the product can make e.g. vacuum

    cleaner

    Governments are large purchasers of goods and services

    Governments subsidize firms and industries and they help them survive and prosper.

    Governments protect home producers against unfair foreign competition

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    Economic Factors

    Marketers need to consider the state of a trading economy in the short and long-terms.

    This is especially true when planning for international marketing. You need to look at:

    1. Interest rates

    2. The level of inflation Employment level per capita

    3. Long-term prospects for the economy Gross Domestic Product (GDP) per capita, and

    so on

    recession, inflation, interest rate, growth rate, level of investment., GDP, GNP, monetary

    policy, BOP, exchange rate

    Sociocultural Factors

    The social and cultural influences on business vary from country to country. It is very

    important that such factors are considered. Factors include:

    1.What is the dominant religion?

    2.What are attitudes to foreign products and services?

    3.Does language impact upon the diffusion of products onto markets?

    4.How much time do consumers have for leisure?

    5.What are the roles of men and women within society?

    6.How long are the population living? Are the older generations wealthy?

    7.Do the population have a strong/weak opinion on green issues?mobile phones, SMS, internet

    most women are working so affect door to door selling e.g. AVON

    Drought will affect food processors because of inadequate supply

    Technological Factors

    Technology is vital for competitive advantage, and is a major driver of globalization.

    Consider the following points:

    1. Does technology allow for products and services to be made more cheaply and to a

    better standard of quality?

    2.Do the technologies offer consumers and businesses more innovative products and

    services such as Internet banking, new generation mobile telephones, etc?

    3.How is distribution changed by new technologies e.g. books via the Internet, flight

    tickets, auctions, etc?

    4.Does technology offer companies a new way to communicate with consumers e.g.

    banners, Customer Relationship Management (CRM), etc?

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    Introduction of new products: PCs, digital camera, webcam, DVD

    Changing ways of doing business email facilitates direct marketing

    It shortens the life cycle of products

    Operating Environment

    The operating environment of the company is semi controllable since actions by the

    company can affect or change the key elements within this environment though mostly in

    the long run.

    It consists of those factors that relate directly to the particular product business of the

    company

    CompetitorsChanges in the number of competitors, changes in competitive strategy, changes in

    product positioning

    Direct v/s indirect competitors

    Companys goals and objectives

    They serve as boundaries or constraints. They are set for the long term.Market share, return on investment, earnings per share, employee turnover

    Companys resourcesFinancial resources

    Physical resources: plants, equipment

    Human resources

    COMMUNICATION

    The prime aim of marketing communications is to influence consumers buying

    behaviour. Because of this marketer need to know how communication works.

    Communication is defined as the sharing of meaning.

    The communication process

    Communication can best be summarized as the transmission of a message from a sender

    to a receiver in an understandable manner.

    The communication process is the guide toward realizing effective communication. It is

    through the communication process that the sharing of a common meaning between the

    sender and the receiver takes place. Effective communication leads to understanding.

    The communication process is made up of five key components. Those componentsinclude encoding, medium of transmission, decoding, response and feedback. There are

    also two other factors in the process, and those two factors are present in the form of the

    sender and the receiver. The communication process begins with the sender and ends

    with the receiver.

    The sender is an individual, group, or organization who initiates the communication.

    This source is initially responsible for the success of the message. The sender's

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    experiences, attitudes, knowledge, skill, perceptions, and culture influence the message.

    "The written words, spoken words, and nonverbal language selected are paramount in

    ensuring the receiver interprets the message as intended by the sender". All

    communication begins with the sender.

    The first step the sender is faced with involves the encoding process. In order to convey

    meaning, the sender must begin encoding, which means translating information into a

    message in the form of symbols that represent ideas or concepts. This process translates

    the ideas or concepts into the coded message that will be communicated. The symbols

    can take on numerous forms such as, languages, words, or gestures. These symbols are

    used to encode ideas into messages that others can understand.

    When encoding a message, the sender has to begin by deciding what he/she wants to

    transmit. This decision by the sender is based on what he/she believes about the

    receivers knowledge and assumptions, along with what additional information he/she

    wants the receiver to have. It is important for the sender to use symbols that are familiar

    to the intended receiver. A good way for the sender to improve encoding their message is

    to mentally visualize the communication from the receiver's point of view.

    To begin transmitting the message, the sender uses some kind of channel (also called a

    medium). The channel is the means used to convey the message. Most channels are either

    oral or written, but currently visual channels are becoming more common as technology

    expands. Common channels include the telephone and a variety of written forms such as

    memos, letters, and reports. The effectiveness of the various channels fluctuates

    depending on the characteristics of the communication. For example, when immediate

    feedback is necessary, oral communication channels are more effective because any

    uncertainties can be cleared up on the spot. In a situation where the message must be

    delivered to more than a small group of people, written channels are often more effective.

    Although in many cases, both oral and written channels should be used because onesupplements the other.

    If a sender relays a message through an inappropriate channel, its message may not reach

    the right receivers. That is why senders need to keep in mind that selecting the

    appropriate channel will greatly assist in the effectiveness of the receiver's understanding.

    The sender's decision to utilize either an oral or a written channel for communicating a

    message is influenced by several factors. The sender should ask him or herself different

    questions, so that they can select the appropriate channel. Is the message urgent? Is

    immediate feedback needed? Is documentation or a permanent record required? Is the

    content complicated, controversial, or private? Is the message going to someone inside or

    outside the organization? What oral and written communication skills does the receiver

    possess? Once the sender has answered all of these questions, they will be able to choose

    an effective channel.

    After the appropriate channel or channels are selected, the message enters the decoding

    stage of the communication process. Decoding is conducted by the receiver. Once the

    message is received and examined, the stimulus is sent to the brain for interpreting, in

    order to assign some type of meaning to it. It is this processing stage that constitutes

    decoding. The receiver begins to interpret the symbols sent by the sender, translating the

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    message to their own set of experiences in order to make the symbols meaningful.

    Successful communication takes place when the receiver correctly interprets the sender's

    message.

    The receiver is the individual or individuals to whom the message is directed. The extent

    to which this person comprehends the message will depend on a number of factors, which

    include the following: how much the individual or individuals know about the topic, their

    receptivity to the message, and the relationship and trust that exists between sender and

    receiver. All interpretations by the receiver are influenced by their experiences, attitudes,

    knowledge, skills, perceptions, and culture. It is similar to the sender's relationship with

    encoding.

    After receiving a message, the receiver responds in some way and signals that response

    to the sender. The signal may take the form of a spoken comment, a long sigh, a written

    message, a smile, or some other action. "Even a lack of response, is in a sense, a form of

    response". Feedback is the final link in the chain of the communication process.

    Feedback is the part of the receivers response that the receiver communicates back to the

    sender. Without feedback, the sender cannot confirm that the receiver has interpreted themessage correctly.

    Feedback is a key component in the communication process because it allows the sender

    to evaluate the effectiveness of the message. Feedback ultimately provides an opportunity

    for the sender to take corrective action to clarify a misunderstood message. "Feedback

    plays an important role by indicating significant communication barriers: differences in

    background, different interpretations of words, and differing emotional reactions".

    The communication process is the perfect guide toward achieving effective

    communication. When followed properly, the process can usually assure that the sender's

    message will be understood by the receiver. Although the communication process seems

    simple, it in essence is not. Certain barriers present themselves throughout the process.

    Those barriers are factors that have a negative impact on the communication process.

    Some common barriers include the use of an inappropriate medium (channel), incorrect

    grammar, inflammatory words, words that conflict with body language, and technical

    jargon. Noise is also another common barrier. Noise can occur during any stage of the

    process. Noise essentially is anything that distorts a message by interfering with the

    communication process. Noise can take many forms, including a radio playing in the

    background, another person trying to enter your conversation, and any other distractions

    that prevent the receiver from paying attention.

    Noise and Selectivity

    The communication process is not carried out in isolation. There are many senders

    competing with their messages for the attention of the receiver. As a result there is

    considerable noise in the environment and an individual may be bombarded by thousand

    messages each day. The task of the sender is to get his message to the receiver but there

    are a number of reasons why the target audience may not receive the message.

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    Selective attention

    A receiver will not notice all the commercial messages that he encounters, so the sender

    must design the message in such a way so as to win attention in spite of the surrounding

    noise.

    Selective distortion

    In many cases receivers may change the information received if that information does notfit in with their existing attitudes, beliefs and opinions. People hear what they want to

    hear. 2 types of distortion:

    Amplification where receivers may add things to the message that are notthere

    Levelingwhere the receivers do not notice other things that are there.The task of the sender is to produce a message that is clear, simple and interesting.

    Selective recall

    A receiver will retain in his permanent memory only a small fraction of the messages that

    reach him. The senders aim therefore is to get the message in to the receivers long term

    memory.

    The three forms of marketing communications systems

    Oral communication

    Written communication

    Audiovisual system

    Factors affecting the choice of communication systems

    The firms promotional objectives

    The budget factor

    The proximity of the target audience

    The availability of communications infrastructure

    The familiarity of the target audience with the system

    Cost effectiveness of the technology used

    Mass Communication

    Mass communication refers to the different media which aim at addressing or

    communicating to a large undifferentiated market with a view to providing information to

    its members and favouring a commonness of thought, behaviour once the

    communications have had an impact or influence on the people.

    Word of mouth communication

    It is personal communication about a product between target buyers and neighbours,

    friends, family members and colleagues.

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    Word of mouth is the passing of information by verbal means, especially

    recommendations, but also general information, in an informal, person-to-person manner,

    rather than by mass media, advertising, organized publication, or traditional marketing.

    Word of mouth is typically considered a spoken communication, although web dialogue,

    such as blogs, message boards and emails are often now included in the definition.

    Word of mouth promotion is highly valued by marketers. It is felt that this form of

    communication has valuable source credibility. People are more inclined to believe word

    of mouth promotion than more formal forms of promotion because the communicator is

    unlikely to have an ulterior motive (i.e. they are not out to sell you something). Also

    people tend to believe people that they know.

    Word of mouth communication is also known as buzz.

    Buzz marketing organizations either pay people, or seek volunteers, to try new brands

    and then have agents talk them up among their social networks.

    Opinion leaders

    They are those people who act as leaders and who can influence other peoples decision

    about the purchase of a product or a commodity. These people are members of reference

    groups which consist of people having a set of common values and who probably stand

    out of the rest.

    Opinion leaders appear to exercise a disproportionate influence in forming and shaping

    the opinions of other people. These people will then orientate their behaviour towards

    that of the reference group.

    They are influential because:

    They are psychologically receptiveThey are perceived as authoritative

    Authoritative role Personality Age Experience Qualification

    CONSUMER DECISION MAKING PROCESS

    To be able to influence consumer behaviour, a promotional plan must take into account

    how purchase decisions are made. Knowledge of the activities and thought processes

    Problem

    recognition

    Information

    search

    Alternative

    evaluation

    Purchase

    decision

    Postpurchase

    evaluation

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    leading up to and after the act of purchase determines what type of promotion effort is

    needed and when it is needed.

    High Involvement Process

    Low Involvement Process

    Characteristics affecting consumer behaviour

    Culturalculture, subculture, social class

    SocialReference groups, Family, Roles and status

    PersonalAge and life cycle stage, Economic situation, Lifestyle, Personality and

    self concept

    Psychological. -. Motivation, Perception, Learning, Beliefs and Attitudes

    Types of buying decision behaviour

    HIP LIP

    Significant differences between brands

    Few differences between brands

    Problem recognition/Need recognition

    The buyer recognizes a problem or need. The buyer senses a difference between his

    actual state and his desired state. Need can be triggered by internal stimuli (hunger, thirst,

    sex) or by external stimuli (advertisement, opinion leaders)

    Information search

    It is the stage where the consumer is aroused to search for more information.

    Sources of information:

    Problemrecognition

    Informationsearch

    Alternativeevaluation

    Purchasedecision

    Postpurchaseevaluation

    Problem

    recognition

    Purchase

    decision

    Postpurchase

    evaluation

    Complex

    buying

    behaviour

    Habitual

    buying

    behaviour

    Dissonance -

    reducingbuyingbehaviour

    Varietyseeking buying

    behaviour

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    Personal sources: family, friends, neighbours and acquaintances

    Commercial sources: advertising, salespeople, packaging and displays

    Public sources: mass media and consumer organisations

    Experiential sources: handling, examining, using the product e.g. test drive

    Evaluation of alternatives

    The consumer uses information to evaluate alternative brands in the choice set. The

    consumer ranks the brands.

    The consumer fact-finding activities help form opinions or attitudes toward alternatives.

    An attitude is a summary judgement reflecting a predisposition or feeling. It comes from

    beliefs or perceptions formed about a product according to specific attributes known as

    evaluative criteria. Beliefs are what the decision-maker considers to be facts about

    product performance. The evaluative criteria are those characteristics that a decision-

    maker considers relevant and important in judging a product.

    Purchase decision

    The consumer takes the decision of buying the product.

    Post purchase evaluation

    Stage in which consumers take further action after purchase based on their satisfaction or

    dissatisfaction.

    Consumers expectations = products perceived performance satisfaction

    Consumers expectations > products perceived performance dissatisfaction

    Consumers expectations < products perceived performance delighted

    Decision processes

    The difference between LIP and HIP stems from the kinds and numbers of activities the

    consumer will engage in and the sequence of these activities.

    HIP

    The decision making process begins with recognition of a problem. The consumer

    conducts a search for alternative solutions, evaluates these alternatives, and makes a

    choice. Finally, the consumer experiences the outcome of his/her choice.

    The process is extensive when an individual views the consequences of a decision as

    serious and important. Hoping to avoid the serious consequences of a poor decision, the

    consumer commits himself or herself to a high level of personal involvement. Time and

    effort are focused on gathering and evaluating all the relevant information. The process of

    information gathering and analysis will continue until the decision-maker is satisfied that

    additional time and effort will not yield a better decision.

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    Implication for promotion

    Problem recognition

    Problem recognition may arise from within the individual or from prompting by

    promotional activity.

    The formidable task faced by a salesperson soliciting new business is persuading the

    prospective client that a problem exists and needs to be addressed. Unless this is

    accomplished, the prospect has no reason to purchase.

    Successful Marketing communications require an understanding of the prevalent needs of

    the market place. The focus of the communications campaign is to show the consumer

    that the product or service promoted addresses a need of some significance

    Information search

    When the consumer is willing to search for external information, the marketer now has anopportunity to provide information on how its product might solve the consumers

    problem.

    Alternative evaluation

    An understanding of the attitude formation process increases the likelihood of persuasive

    communications. Persuasion may come about through control of consumer perceptions

    about product performance, and the importance attached to attributes entering in the

    evaluation process.

    Beliefs about product performance are affected by promotional messages. Favourable

    perceptions about product attributes lead to favourable attitudes. (E.g. orange is

    fashionable)

    Promotion may aim at changing the weight placed on evaluative criteria. (Colour, price,

    performance)

    Purchase decision

    While promotion is traditionally a persuasive activity prior to purchase, it may also be

    useful in a purchase decision. For e.g. pop display materials can generate awareness or

    reinforce beliefs at the purchase location. Special discount coupons may be the effort that

    convinces the consumer that it is the right time to buy.

    Post purchase evaluation

    Dealing with the customer does not stop after the completion of a sale. Where there are

    opportunities for repeat sales, ongoing communications may be necessary.

    Satisfactions should be reinforced. Dissatisfaction should be reduced or eliminated.

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    LIP

    In LI decisions, the consequences of quick decision making do not seem to be serious.

    The consumer does not expect that additional effort will mean any significant

    improvement in the quality of the decision. Many LIPs are similar, and extended

    evaluation of competing brands would not identify a significantly better item amongalternatives

    The LIP decision process begins with problem recognition. Purchase decision occurs

    without conducting any alternative evaluation. The experiences with the purchase

    decision provide the basis for formulating an attitude toward a product.

    Implication for promotion

    Problem recognition

    Problem recognition is temporal. It fades quickly from memory because more importantthoughts take its place. The probability of action to fulfill a need diminishes rapidly after

    recognition. Unless purchase opportunities occur at the time of problem recognition, it

    may be that no action will take place. Since the need is relatively unimportant, one can

    postpone action and eventually just forget the need. Thus, advertising for LIP may not

    lead directly to purchase. Such advertising will build recognition of product benefits only

    after significant repetition.

    Marketers can take advantage of a given situation to stimulate problem recognition and

    immediate action. Pop displays are effective in attracting attention to a product and aiding

    recall of needs for LIPs.

    Purchase decision

    It is influenced by easily recallable information that an individual has stored in memory.

    Recognition of the brand is a key factor in the choice among LIP. Since there is little

    importance attached to the product, little or no serious product evaluation takes place.

    Consequently, items with distinctive features such as unusual package shapes, eye-

    catching colours or memorable brand names have an edge over competitors s products,

    since choice is often directed toward the item that comes to mind first.

    Advertising is used to create awareness of the product. Sales promotion such as pop and

    other merchandising devices is designed to trigger recall of the advertised product. The

    availability of the product and the immediate recall of the advertised product combined

    lead to purchase.

    Post purchase evaluation

    A favourable attitude influences future product choice but does not ensure that brand

    insistence will take place. Difficult to have brand loyalty for LIP as customers stay with

    the brand because the consumer simply does not want to spend time looking for better

    alternatives.

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    Brand switching can easily be triggered by aggressive promotion efforts (coupons,

    premiums) to encourage product trial.

    Promotional effort:

    Maintain or build top of mind awareness Vigilant about the promotional activities of competitors to avoid brand switching.

    Brand switching from competitors product to marketers product.

    Characteristics affecting consumer behaviour

    Consumer purchases are influenced strongly by cultural, social, personal and

    psychological characteristics. Marketers cannot control these factors but must take them

    into account.

    Cultural factors

    Culture: The set of basic values, perceptions, wants, and behaviours learned by amember of society from family and other important institutions.

    Subculture: A group of people with shared value systems based on common life

    experiences and situations.

    Social class: Relatively permanent and ordered divisions in a society whose

    members share similar values, interests and behaviours.

    Social factors

    Group: 2 or more people who interact to accomplish individual or mutual goals.

    Family

    Roles and status: persons position in each group and status is the general esteemgiven to it by society.

    Personal factors

    Age and family life cycle

    Occupation

    Economic situation

    Lifestyle: a persons pattern of living as expressed in his or her activities, interests

    and opinions.

    Psychological factors

    Motive: a need that is sufficiently pressing to direct the person to seek satisfaction

    of the need.

    Perception: The process by which people select, organize, and interpret

    information to form a meaningful picture of the world.

    Perception depends on selective attention, selective distortion, and selective

    retention.

    Learning: Changes in an individuals behaviour arising from experience.

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    Belief: A descriptive thought that a person holds about something.

    Attitude: A persons consistently favourable or unfavorable evaluations, feelings,

    and tendencies toward an object or idea.

    Types of buying decision behaviour

    Complex buying behaviour: consumer-buying behaviour in situations characterised by

    high consumer involvement in a purchase and significant perceived differences among

    brands.

    Dissonance reducing behaviour: consumer-buying behaviour in situations characterised

    by high involvement but few perceived differences among brands.

    Habitual buying behaviour: consumer-buying behaviour in situations characterised by

    low consumer involvement and few significant perceived brand differences.

    Variety seeking buying behaviour: consumer-buying behaviour in situations

    characterised by low consumer involvement but significant perceived brand differences.

    Impact of culture on promotion

    Culture: The set of basic values, perceptions, wants, and behaviours learned by a member

    of society from family and other important institutions. Whilst on the surface most

    countries of the world demonstrate cultural similarities, there are many differences,

    hidden below the surface. One can talk about "the West", but Italians and English, both

    belonging to the so called "West", are very different in outlook when one looks below the

    surface. The task of the global marketer is to find the similarities and differences inculture and account for these in designing and developing marketing plans. Failure to do

    so can be disastrous. Culture also reveals itself in many ways and in preferences for

    colours, styles, religion, family ties and so on. The colour red is very popular in the west,

    but not popular in Islamic countries, where sober colours like black are preferred. The

    major elements of culture are material culture, language, aesthetics, education, religion,

    attitudes and values and social organisation. Language reflects the nature and values of

    society. Language can cause communication problems - especially in the use of media or

    written material. Values often have a religious foundation, and attitudes relate to

    economic activities. It is essential to ascertain attitudes towards marketing activities

    which lead to wealth or material gain, for example, in Buddhist society these may not be

    relevant.

    Therefore the marketing communications planner must be very careful when designing

    the message to send to the customers so as not to offend them.

    A joke : A disappointed salesman of Coca Cola returns from his Middle East (Dubai)

    assignment.

    A friend asked, "Why weren't you successful with the Arabs?"

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    The salesman explained, "When I got posted in Dubai, I was very confident that I will

    make a good sales pitch as Cola is virtually unknown there. But, I had a problem; I didn't

    know to speak Arabic. So, I planned to convey the message through 3 posters. First

    poster: a man crawling through the hot desert sand, totally exhausted and fainting.

    Second, the man is drinking our Cola and third, our man is now totally refreshed. Then

    these posters were pasted all over the place.""That should have worked," said the friend.

    The salesman replied, "Well, not only did I not speak Arabic, I also didn't realize that

    Arabs read from right to left..."

    MARKETING COMMMUNICATIONS PLANNING

    To have an effective campaign, the promotion planner must know whom to contact and

    what to say to them. There are 3 related activities critical to the planning of a promotion

    campaign: Market segmentation, target selection, and product positioning.

    Market segmentation

    It is the partitioning of a large market with diverse needs and wants into sub markets or

    segments. These segments consist of individuals with similar needs and wants.

    Criteria when segmenting a market

    A relatively distinctive behaviour characterizes each group.

    One may describe each group by referring to measurable and understandable

    dimensions.

    Marketplace potential achieves reality when the marketer is able to locate and

    communicate with the consumers. The marketer needs a profile of the target group.

    Without a clear idea of who is a qualified prospect and who is not, the marketers

    message may be wasted on individuals who have little or no interest in the product

    The market potential has an appropriate size.

    Segments should define groups having sufficient demand to justify marketing effort.

    A groups demand emerges from population size and its purchasing power.

    There is a means of communicating with the segment.

    The marketer must discover effective and efficient means for communicating with

    that segment.

    Target market selection

    After segmenting the market, the marketer has to decide on which segment the marketing

    effort will be concentrated.

    Target market selection is the result of assessing the identified segments as to their

    potentials for the achievement of marketing and corporate goals.

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    4 factors that influence the choice of the target market:

    1. Determining the appropriate effortEffective segmentation identifies segments with different response tendencies. A

    marketer must consider each segments potential with a specific marketing effort.

    For e.g. in the toothpaste market there are 2 segments : decay prevention segment andeconomy segment. For the 1st

    segment the message should concentrate on the product

    benefit of decay prevention by creating awareness of the products decay prevention

    attributes. The other segment will respond to a campaign promising product value. The

    delivery of a message to each group may call for the use of different media.

    To know which effort will be more appropriate, research and analysis is conducted.

    2. Assessment of the costsDifferent marketing efforts require different budgets. If a segment can be tapped/reached

    with pop materials, the cost to the marketer will be much less than the cost of a campaign

    directed to a segment that can be reached only with national prime time TV ads. Themarketer must define the cost of the efforts necessary to produce the desired market

    response from a segment.

    3. Analysis of the competitive environmentThe evaluation focuses on the no of competitors selling to a market, the market share, the

    degree of loyalty that competitors establish within the segment. Lots of competitors but

    no market leader, a new supplier will enter the market. If 1 supplier dominates the

    market, another supplier may enter the market if research shows customers will switch

    brands.

    4. Projection of performanceThe assessment of the competitive environment together with the identification of the

    cost and effort needed to penetrate a segment help to predict accomplishment. The

    projected achievements can be expressed in the form of sales, market share, profitability,

    or some combination. If one projects that, a segment will meet or exceed established

    goals for sales, market share, or profitability, then the company selects that segment.

    Product positioning

    If a customer buys a product it implies that the product by itself is appealing to the

    customer and also more appealing than competitors products.

    Product positioning analysis determines the product image-the impression of a product

    held in a consumers mind- that one wants to communicate to the target market. This

    image, if it is appealing and distinctive, occupies a place or niche in the mind and has a

    strong influence when a product choice occurs. PC IBM

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    The product positioning decision is especially important for promotional strategy.

    Promotion communicates ideas, and these ideas in turn influence market response. The

    basic message idea about the product depends on the product image, those impressions

    about the promoted product that influence choice. Positive, distinctive impressions about

    a product increase the chances of its selection. The message that the promotional planner

    will send to customers depend on the positioning of the product. It will be that messagethat will create an image in the mind of customers.

    Types of positioning

    1. Product attribute imagesMany brands appeal to consumers because of benefits that stem directly from product

    features. The promotion message concentrates on the consumer gains resulting from

    product performance.

    2.

    Images based on symbolism

    When there are no significant differences between products, the position arises from

    broad symbolism rather than product performance.

    3. Direct competitive positioningIn a highly competitive setting a product may not be successful simply by being

    distinctive. It may have to convince consumers explicitly that it has adv over competitors

    product. E.g. 7up is an uncola.

    PROMOTIONAL PLANNING PROCESS

    Promotional management involves coordinating the promotional mix elements to

    develop a controlled, integrated program of effective Marketing communications .

    A promotional plan provides the framework for developing , implementing, and

    controlling the organizations integrated Marketing communications programs and

    activities.

    Promotional planners must decide on the role and function of the specific elements of the

    promotion mix, develop strategies for each element, and implement the plan.

    Promotion is only one part of the overall marketing plan and program and should be

    integrated into it.

    Review of marketing plan

    Before developing a promotional plan, marketers must understand where the company

    has been, its current position in the market, where it intends to go, and how it plans to get

    there.

    A marketing plan describes the overall marketing strategy and programs developed for an

    organization. There are 5 basic elements:

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    Situation analysis (internal marketing audit, external analysis of the market

    competition and environmental factors).

    Specific marketing objectives

    Marketing strategy

    Implementation of marketing strategy

    Process for monitoring and evaluating performance and controlling programPromotional plan is an integral component of the marketing strategy.

    Promotion plan uses the detailed information of the marketing plan.

    Promotional program situation analysis

    Internal analysis

    Assesses the relevant areas involving the product offering and the firm itself.

    Capabilities of the firm and its ability to develop and implement a successful

    promotional program

    The organisation of the promotional department

    Review of the successes and failures of past programs

    Advantages and disadvantages of performing the program in house v/s advertising

    agenciesStrengths and weaknesses of the firms from an image perspective

    Adv and disadvantages of the product

    Any unique selling points

    External analysis

    Focuses on such factors such as characteristics of the firms cu stomers, market segments,

    positioning strategies and competitors

    Customer analysis: customers characteristics and buying patterns and decision process

    Customers perceptions, attitudes and lifestyles.

    Market analysis

    Attractiveness of various market segments and selection of target market

    How should the product be positioned i.e. what image or place should it have inconsumers minds

    Competitive analysis

    Focus is on competitors promotional strategy

    Strengths and weaknesses, segmentation targeting and positioning strategies, promotional

    strategies, their budget, media strategies and messages they are sending to the market

    place.

    Analysis of the communication process

    How can the company effectively communicate with its target market?

    Consumer decision making process: HIP v/s LIP

    Which media to use?What are the communications objectives? Awareness, knowledge about benefits of a

    product, creating an image, developing favourable attitudes, preferences or purchase

    intentions.

    Budget determination

    What will the promotional program cost?

    How will the budget be allocated?

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    At this stage the budget determination is only tentative, it may not be finalized until

    specific promotional mix strategies are developed.

    Develop the Integrated Marketing Communications Program

    Decisions have to be made regarding the role and importance of each element and their

    coordination with one another.

    Each promotional mix element has its own set of objectives and a budget and a strategy

    for meeting them. Decisions must be made and activities performed o implement the

    promotional programs. Procedures must be developed for evaluating performance and

    making any necessary changes

    Monitoring evaluation and controlIt is important to determine how well the promotional program is meeting

    communications objectives and helping the firm accomplish its overall marketing

    strategies. The manager must know the reasons in order to take the right steps to correct

    the program.

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    Review of marketing plan

    Examine overall marketing plan and objectivesRole of advertising and promotions

    Competitive analysis

    Assess environmental influences

    Analysis of promotional situation analysisInternal analysis

    Promotional department organisation

    Firms ability to implement promotional

    program

    Agency evaluation and selection

    Review of previous program results

    External analysisConsumer behaviour analysis

    Market segmentation and target marketing

    Market positioning

    Analysis of communications process

    Analyze receivers response processes

    Analyze source, message, channel factors

    Establish communications goals and objectives

    Budget determinationSet tentative Marketing communications budgetAllocate tentative budget

    Develop IMC program

    AdvertisingSet advertising objectives

    Determine advertising budget

    Develop message strategies

    Develop media strategies

    Direct marketing

    Set direct marketing objectives

    Determine direct marketing budget

    Develop direct marketing strategies

    Sales promotion

    Set sales promotion objectivesDetermine sales promotion budget

    Develop sales promotion strategies

    Public relations

    Set public relations objectivesDetermine public relations budget

    Develop public relations strategies

    Personal Selling

    Set personal selling objectives

    Determine personal selling budget

    Develop selling roles and responsibilities

    Integrate and implement marketing communications strategies

    Integrate promotional mix elementsCreate and produce ads

    Purchase media time and space

    Design and implement direct marketing programs

    Design and distribute sales promotion materials

    Design and implement public relations program

    Monitor, evaluate, and control integrated marketing communications program

    Evaluate promotional program results/effectiveness

    Take measures to control and adjust promotional strategies

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    Directmarketing

    ob ectives

    Review of marketing plan

    Promotional situation analysis

    Analysis of communications process

    Budget determination

    Develop Integrated marketing communications program

    Integrate and implement marketing communications strategies

    Monitor, evaluate and control integrated marketing communications

    Advertising Direct marketing Sales promotion Public relations Personal selling

    Advertisingobjectives

    Salespromotion

    ob ectives

    Publicrelations

    ob ectives

    Personalselling

    ob ectives

    Message

    strategy

    Direct

    marketingstrate

    Sales

    promotionstrate

    Public

    relationsstrate

    Personal

    sellingstrate

    Mediastrategy

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    EVALUATION AND CONTROL

    Objectives

    The task of setting objectives must be done properly, because specific goals and

    objectives are the foundation on which all other promotional decisions are made.

    Budgeting for advertising and the other tools, as well as creative and media strategies and

    tactics, evolve from these objectives. They also provide a standard against performance

    can be measured.

    Objectives are the goals that the company wishes to achieve.

    Objectives are important because

    Facilitate the coordination of the various groups working on the campaign i.e.company and advertising agency, Public Relations firms.

    All the parities must know what the company hopes to accomplish through its

    Marketing communications program. (communications)

    Guide the development of the integrated marketing communications plan (planning).All phases of a firms promotional strategy should be based on established objectives.

    Objectives are also a guide for decision making. Choices should be based on how

    well a particular strategy matches the firms promotional objectives. (decision)

    Provide a benchmark against which success or failure of the promotional campaigncan be measured. (measurement and evaluation of results)

    Integrated marketing communications objectives should be based on a thorough situation

    analysis that identifies the marketing and promotional issues facing the company.

    Promotional objectives evolve from the companys overall market ing plan and are rooted

    in its marketing objectives.

    Marketing objectivesare stated in the firms marketing plan and are statements of what

    is to be accomplished by the overall marketing program within a given time period. (sales

    volume, market share, profits, return on investment).

    Promotional objectives/Marketing communications objectives are stated in the firms

    promotional plan and are statements of what is to be accomplished by the promotional

    plan within a given time period.

    Promotional objectives help to achieve the marketing objectives.

    Examples:

    To increase awareness.

    To position the product as the best value for money deal.To change beliefs of customers.

    To change attitudes of customers.

    To encourage trial of the product.

    To create interest in the product.

    To arouse desire for the product.

    To trigger action by the customer.

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    Characteristics of objectives

    Objectives should be SMART

    Specific specific end results

    Measurable must be quantified wherever possible and can be measuredAchievable should be realistic

    Relevant should be in line with the overall marketing strategy

    Timed and targeted within a timeframe and should target particular customers

    For e.g. Create awareness of the product among non-users by 20% within 6 months.

    Ways of generating promotional objectives

    The individual elements of one the communication models should be considered.

    AwarenessInterest

    Desire

    Action

    Budget

    Once the objectives are set the promotional planner must see how much the campaign

    will cost and how much the company is willing to spend on the campaign.

    There are different methods, which are used to calculate the amount of money to be spent

    on the integrated marketing communications program.

    Same as last time method SALTThis method produces an expenditure level that is the same as the previous budget period,

    subject only to adjustments for special circumstances such as product introductions or

    special promotional activities.

    Yr. 1 budget Rs 500 000.

    Cost of introducing new product Rs 100 000

    Yr. 2 budget = 500 000 + 100 000 = Rs 600 000

    Percentage of sales methodIt is a percentage of the forecasted sales. The historical percentage is calculated by taking

    the previous periods ratio of promotional expenditure to sales.

    All that can be afforded methodThis method is based on current financial circumstances The company allocates the fund

    that is left to promotional activities. It is calculated as follows:

    revenueexpensesprofit = amount to be spent on promotion.

    Competitive parity method

    With this method, the promotional planner will find out how much competitors are

    spending and they would allocate the same amount for their budget.

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    Objective and task methodThe promotional planner establishes specific goals and objectives for the promotional

    effort for the period. Once these have been determined, management defines the actions

    necessary to achieve these tasks. Then the promotional planner allocates a cost to each

    task. The sum of these costs is the amount that should be allocated as promotional

    budget.

    Evaluation and Control

    To ensure an effective and efficient promotional effort the promotional planner should

    concentrate on the evaluation of performance and the exercise of necessary control. Good

    promotional management will detect problems as soon as possible and will identify the

    appropriate corrective action. Promotional campaigns can be very expensive in time and

    money and it is much less costly to prevent major problems than to remedy those

    problems after the fact.

    The value of a campaign is its ability to improve the companys competitive position. Toestimate the value of a campaign, evaluation procedures must consider past efforts and

    performance and conclude whether or not the most recent campaign has contributed to

    the improvement of the companys position.

    A complete evaluation of performance considers not only how an organisation is doing

    relative to its own past but also how it is doing compared with its competitors.

    Goals of an evaluation and control system

    1. To determine what has occurred, is occurring and will occur during the course of thecampaign

    To give a true picture of activity taking place as a result of the promotional effort. The

    system seeks to monitor the performance and provide an accurate picture of what has

    happened, is happening and will probably happen in the market place because of the

    organisations communications efforts.

    2. To measure the quality of the occurrencesThe evaluation system must make a statement of the worth of the promotional

    performance i.e. whether the performance is a good one or not.

    3. To identify appropriate courses of action.Following the judgement of the performance, a corresponding action will be identified.

    There must be an action after getting the judgement on the results of the promotional

    effort. The basic objective of the control system is to provide clear signals of necessary

    actions to ensure that the promotion program is on the right track.

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    Characteristics of an effective evaluation and control system

    1. It incorporates into its evaluation and control procedures the objectives of thepromotion.

    The performance of the campaign is judged against the objectives of the campaign.

    Therefore the objectives act as a benchmark for evaluating the program. Objectivesshould be SMART to enable a good judgement of the performance.

    E.g. increase in awareness level. If not precise then 3% may be good for someone or

    disappointing for someone else.

    2. It measures areas of performance critical to the success or failure of the program.It is not economically feasible to track all possible results in the market place. Most of

    those factors will have no impact on the overall success or failure of the program. An

    effective evaluation system uses its financial and human resources efficiently by

    concentrating on the relevant rather than the trivial determinants of promotion

    performance.

    3. It has the capacity to either initiate the necessary control action itself or provideindications as to the nature of those actions.

    A good control system minimises the amount of time between analysing a situation and

    effecting the appropriate actions. As more time passes between the recognition of an

    opportunity or problem situation and the taking of appropriate action the cost goes up.

    An evaluation and control system is a process. The process consists of stages of

    activities that occur sequentially or simultaneously.

    Steps

    1. Defining the promotional effortThe marketers principal objective is to find true indicators of promotional effort. The

    manager needs a measure or a set of measures that accurately reflects the work actually

    done with the 5 tools.

    expenditures

    the amount of money spent. It facilitates the comparison of effort levels across

    promotional elements. e.g. 100000 advertising and 200000 personal selling therefore 2

    times more effort on ps.

    activity by medium

    Communication activity may be a more desirable measure of communications effort than

    just expenditures. Activity means the type of work being done, the type of services being

    employed, and the amount of such work and services for e.g. advertising on TV no of

    gross rating points purchased, personal selling number of calls per day, sales promotion

    number of samples distributed.

    use of multiple measures of effort

    A combination of the above measures is a better way of defining the promotional effort.

    2. Selecting performance measuresWe need a precise knowledge of what has happened among the target audience.

    Performance measures are measures of communication and persuasion effects.

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    A promotion program is directed towards a defined specific audience with the intent of

    causing a specific response. The statement of the programs objectives reflect this; the

    objectives identify who is to be reached and what is to be the response (awareness,

    comprehension, conviction or purchase). Therefore the measurement of performance

    should be based on the goals.

    Specific performance measures1. Audience analysis to determine whether the campaign has reached theintended audience.

    2. Awareness measures to determine the degree of knowledge of the sellersofferings by the audience. (unaided recall measures and aided recall measures)

    3. Comprehension measures to determine the amount of attention that theaudience devoted to the promotional message.

    4. Conviction measures to determine the judgements or conclusions that peopledraw from information.

    5. Intentions measures to determine what a person or organisation expects to dowithin a given time.

    6.

    Purchase measures to determine the events that are taking place in themarketplace.

    3. Establishing standardsA company derives the expectations of performance principally from the statement of

    objectives. If projected conditions are similar to the actual conditions of operation, then

    the objectives must be the standards on which to judge performance.

    4. Comparing performance with standardsThe marketer must determine the direction and magnitude of the difference between

    expectation and performance.

    performance > expectation good

    performance < expectation bad

    We should determine whether there are significant differences, differences that exceed

    acceptable limits. It is necessary to establish decision rules to define the tolerable limits

    of deviation.

    5. Executing appropriate actionThe control system identifies activities necessary to ensure that the program

    accomplishes its ultimate objectives.

    No action

    (i) When there is no significant deviation of actual performance from establishedgoals.

    (ii) No action is taken in cases of differences when the manager concludes that such adeviation is only temporary.

    (iii) No action is taken if the cost of action outweighs the projected gains in therelevant period.

    Remedial/corrective action

    Addresses those areas where there are undesirable results.

    Preventive action

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    Preventive actions do not address any immediate deficiencies in the program. Their

    purpose is to check a problem before it has developed.

    Preventive actions are less costly to the company than remedial actions.

    The evaluation and control process

    No corrective Consider No corrective Undertake Lower Take corrective

    action raising action preventive expectation action

    Standards action forfuture

    More intensive Differenteffort effort

    Define the promotional effort under evaluation Type of effort (national television, regional magazine coverage,

    coupons) Intensity of effort (by expenditure levels, or by activity for e.g.

    number of product samples distributed)

    Identify relevant measures and standardsBased largely on promotional objectives set before the campaign

    Compare performance with standards

    Execute appropriate action

    Performance betterthan expectations

    Performance equal toexpectations

    Performance less thanexpectations

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    ADVERTISINGDefinition

    Advertising is a paid non-personal communication from an identified sponsor using mass

    media to persuade or influence an audience.

    1. Types of advertising1.1 Brand advertising

    Focuses on the development of a long term brand identity and image. It tries to

    develop a distinctive brand image e.g. Coca Cola

    1.2 Retail advertisingFocuses on the store where a variety of products can be purchased. The message

    announces products that are available locally, tries to develop a distinctive image

    for the store e.g. Spar

    1.3 Political advertisingUsed by politicians to persuade people to vote for them

    1.4 Directory advertisingHelps people to find out how to buy a product or service e.g. yellow pages

    1.5 Direct response advertisingIt may use any medium including direct mail. It tries to stimulate a sale directly.

    The consumer can respond by telephone or mail and the product is delivered.

    1.6 Business to business advertisingIncludes messages directed at retailers, wholesalers, distributors and professionals

    (lawyers). It tends to be concentrated in business publications or professional

    journals.

    1.7 Institutional advertising/Corporate advertisingThe focus of this message is on establishing a corporate identity.

    1.8 Public service advertisingCommunicates a message on behalf of some good cause e.g. stopping drunk

    driving. These ads are created for free by advertising professionals and the space

    and time are donated by the media.

    2. Roles of advertising2.1 Marketing role

    Helps satisfy customer needs.

    2.2

    Communication roleProvides information that helps match buyers and sellers in the market place.

    2.3 Economic roleMarket power school: advertising is a persuasive communication tool used by

    marketers to distract consumers attention from the price of the product.

    Market competition school: advertising is a source of information that increases

    consumers price sensitivity and stimulates competition.

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    2.4 Societal roleInforms us about new and improved products and teaches us how to use these

    innovations. It helps us compare products and features. It mirrors fashion.

    3.

    Functions of advertising

    There are 2 basic functions that advertising attempts to do: institutional advertising and

    product advertising

    3.1 Institutional advertisingIt is designed to create a positive attitude toward the seller. The intent is to promote the sponsoringorganisation rather than the products it sells.

    3.2 Product AdvertisingIt aims to inform or to stimulate the market about the sponsors product. The

    intent is clearly to sell a particular product to the exclusion of competitorsproduct.

    It can be classified as follows:

    3.2.1 Direct action advertising v/s Indirect action advertisingDirect action advertising is intended to produce a quick response e.g. ads with

    expiry date.Indirect action advertisingis designed to stimulate demand over a longer period of time. These ads

    inform customers that the product exists, indicate its benefits, state where it can be purchased, remind

    customers to repurchase and reinforce this decision.

    3.2.2 Primary advertising v/s Selective advertisingPrimary advertisingaims to promote demand for a generic product e.g. chickenSelective advertisingattempts to create demand for a particular brand

    3.2.3 Commercial advertising and Non commercial advertisingCommercial advertisingpromotes a product with the intent of making a profit.

    Non commercial advertising tends to be sponsored by organisations that are not in

    business to make money e.g. charity organisations

    4. Overview of advertising managementAdvertising management entails analysis, planning, implementation and control activities

    directed towards objectives, budgets, message development and media decision.

    Set objectives

    Estimate budget

    Devise advertising strategy

    Implement advertising plan

    Evaluate advertising program

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    ADVERTISING MANAGEMENT

    1. The advertising objectivesAn advertising objective is a specific communication task to be accomplished with a

    specific target audience during a specific period of time.

    Steps to achieve effective communications:

    Identify target audience

    The audience will affect the decisions on what will be said, how it will be said, where

    it will be said and who will say it.

    Determine communications objectives i.e. what is the response sought

    Final response is purchase. The communicator needs to identify in which stage the

    target audience is and to which stage the target audience will be after the message.

    Design a message (message content, message structure, message format)

    The message should get attentionThe message should hold interest

    The message should arouse desire

    The message should obtain action

    Message content (what to say)

    The communicator has to figure out an appeal or theme. There are 3 appeals

    Rational appealsrelate to the audiences self interest.

    Emotional appealsattempt to stir up positive or negative emotions.

    Moral appealsare directed to the audiences sense ofwhat is right and proper.

    Message structure (how to say the message)

    3 message structure issuesShould the message draw a conclusion or leave it to the audience?

    Should the message present only a one sided argument or should it also admit

    its shortcomings?

    Should the message present the strongest arguments first or last?

    Message format (how to say the message)

    Depends on the media chosen. The communicator has to decide for

    Print media: headline, copy, illustration and colour.

    Radio: words, sounds and voices.

    TV: all previous elements and body language.

    Choose media

    2 main types of channel of communications:Personal channel of communications

    Non-personal channel of communications

    Collect feedback

    Market research

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    Purpose/Aim of advertising:

    Informative advertisingaim is to build primary demand. Persuasive advertisingaim is to build selective demand Reminder advertisingaim is to keep consumers thinking of the product2. The advertising budget Affordable method % of sales method Competitive parity method Objective and task method Same as last time methodFactors to be considered when setting advertising budget

    Stage in product life cycleNew products typically need large advertising budgets as a ratio to sales than do low

    market share brands to build awareness and gain consumer trial. Mature brands

    usually require lower budgets as a ratio to sales.

    Market shareHigh market share brands usually need more advertising spending as a percentage of

    sales than do low market share brands. Building the market or taking share from

    competitors requires larger advertising spending than does simply maintaining current

    share.

    Competition and clutterIn a market with many competitors and high advertising spending, a brand must be

    advertised more heavily to be noticed above the noise in the market.

    Advertising frequencyWhen many repetitions are needed to present the brands message to consumers, the

    advertising budget must be larger.

    Product differentiationA brand that closely resembles other brands in its product class requires heavy

    advertising to set it apart. When the product differs greatly from competitors,

    advertising can be used to point out the differences to consumers.

    The advertising strategy

    2 major elements:

    1. Creating advertising messages2. Selecting advertising media

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    Creating advertising messages

    The message of an advertisement is the impression that the advertiser wants to leave in

    the audiences mind.

    Distinction between LIP and HIP will determine the content of the message and the

    amount of information to be given

    Message determinants:

    Target audience

    The advertiser should focus on the group with which he wishes to communicate. The

    developers of the message should understand the target audience thoroughly.

    Knowledge of the audiences decision process gives the advertiser an idea of the

    opportunities for advertising to influence product choice.

    Product

    The distinction here is whether the product is HIP or LIP

    LIPs are those products for which consumers will buy without paying attention to the

    information given. In fact the consumer does not require any information on theproduct to convince him to buy the product. The customers are familiar with the

    brand. So the message can be simple and memorable. The low involvement decision

    maker may find interest in the central values Attention is paid to an ad because of

    interest in the ad setting rather than in the product. The good feeling evoked by the admay then carry over to the product. The ad will be full of imagery.

    HIPs are those products which customers will buy only if the information provided

    has convinced them. Product choice in a high involvement decision depends on

    attitudes formed through the processing of information. The theme for these products

    tends to be more complex. Advertisements promoting HIPs are more likely to

    influence market place decisions by stressing product attributes. The decision maker

    needs, wants and is very interested in product information so as to make a correctselection. For HIPs the message should present appealing information on product

    attributes. The advertiser must understand the important features of the product.

    Proper presentation of the product requires comprehension of what it does and how it

    does what it does. The product features are the springboard of message ideas. Themessage should concentrate on benefit that can come from these features.

    The development of ads across consumer decisions differs in the balance between

    stress on product attributes and stress on advertising mood. The graph on the next

    page suggests that mood and product information are basic elements in

    advertisements.

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    High

    Imagery

    Product attributes

    Low High

    Degree of consumer involvement with product

    Competitive positioning

    In a competitive environment the audience is exposed to hundreds of messages daily.

    The audience cannot remember all messages. As a result selective attention and

    selective retention occurs.Positioning is important in a competitive environment. To have a good positioning

    the advertiser has to point out the benefits considered desirable by the target audience

    but more importantly benefits considered superior to those of competitors. The

    advertising message should present an image sufficiently distinctive to be

    remembered by the consumer. The product should occupy a unique place in the

    audiences mind so that when a choice has to be made, the advertised product comes

    up quickly and in a favourable light.

    Approaches to a message

    Effective communication results not only from what an ad says but also from how it saysit i.e. the tone used or the manner of presentation. There are several approaches.

    Informative approachThe audience receives an objective statement of facts or evidence. This approachis successful if the audience is actively seeking information from the advertiser,the assessment of facts is straightforward for the audience and the judgement isfavourable to the advertiser.

    Relative

    Stress of

    advertisingmood

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    Argument approach (reason why)

    It presents not only facts but also judgements or evaluation of facts. This approachis desirable in a situation in which the benefits from the features are not thatobvious to the reader and that the advertiser cannot be reasonably confident thatthe receiver will deduce those benefits. This is the case for innovative products.

    This approach is appropriate for high involvement decisions where the consumerwants to evaluate the information, so here the advertiser guides the evaluation.

    Psychological appealIn this approach, emphasis on product attributes is secondary. Emphasis will beon emotions, the mood that the ads settings convey. It is believed that an adsinfluence on the audience is more likely through an emotion appeal than throughan objective rational highlighting of product features. (Low involvement product)

    Repeated assertionThe basic message is usually very simple and appears repeatedly throughout theads in words, graphics and sounds. This approach is appropriate where thefrequency of the message idea is more apt to influence consumers than is the

    substance of the message particularly with LIP.

    Command approachIt explicitly states the course of action the audience is expected to undertake andleaves no question as to what that is. Take a break, have a kitkat. This approach

    promotes familiar products or services where the directed behaviour is appealingand acceptable.

    Symbolic associationAn ads message draws upon connotations from its association with a symbol.The aim is to trigger ideas through the use of a symbol, word, illustration, person,music. With symbolic association, the advertiser must be certain that a link doesindeed exist between the symbol and ideas. The use of symbols to present amessage generally occurs with reminder advertising for familiar products.Symbols are frequently used for LIP where easy product recall is important forthe sale.

    Imitation approachAssumes that the principal motivation for behaviour is the desire to associate witha person or group. This approach often appears in ads containing endorsements ortestimonials from presumably admirable individuals and this approach assumesthat there is social influence on the consumer decision.

    The message strategy

    The first step in creating effective advertising messages is to plan a message strategy

    which will determine what general message will be communicated to consumers. Thepurpose of advertising is to get consumers to think about a product in a certain way.

    People will react only if they believe that they will benefit from doing so. In the search

    for benefits to features, many creative people start by talking to consumers, dealers,

    experts and competitors or others put themselves in the place of consumers and try to

    figure out the benefits consumers seek.

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    Message strategy statements tend to be plain, straightforward outlines of benefits and

    positioning points that the advertiser wants to stress. These strategy statements must be

    turned into advertisements that will persuade consumers to buy or to believe something.

    The advertiser then must develop a compelling creative concept or big idea that will

    bring the message strategy to life in a distinctive and memorable way. A creative concept

    must have relevance, originality and impact. At this stage, simple message ideas becomegreat advertisement campaigns.

    All agencies have copywriters and art directors who are responsible for dreaming up the

    creative concept and crafting the execution.

    The concept may come to mind as a visual, a phrase or a thought that uses both visual

    and verbal expression. The creative concept will guide the choice of specific appeal to be

    used in an advertisement campaign. Advertising appeals should have 3 characteristics:

    Meaningful pointing out benefits that make the product more desirable to

    consumers

    Believable consumers must believe that the product will deliver thepromised benefits

    Distinctive they would tell how the product is better than the competing

    brands

    For e.g. a watch is expected to give accurate time, but advertisers cannot tell this to

    customers!!! Therefore advertisers use themes.

    SWATCHstyle and fashion ROLEXluxury and statusThe creative concept then becomes the springboard for the execution of the

    advertisement.

    The message execution

    The word execution refers to all the details & decisions involved in production of the

    advertisement. The impact of the message depends not only on what is said but also how

    it is said. The creative people must find the best technique, style, tone and format for

    executing the message.

    TechniqueThere are 2 basic literary techniques: lecture and drama

    1. LectureA lecture is a serious structured instruction given verbally to present

    knowledge and facts. Lectures are a form of direct address,. The speaker

    addresses the audience form the TV or written page and the audience receives

    the message at a distance. The speaker presents evidence and employs such

    techniques as an argument to persuade the audience.

    Advantages

    Cost less to produce More compact and efficient

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    Get right to the pointDisadvantages

    Audience often becomes distracted by other matters

    Audience makes fun of the source

    Audience disputes every point

    These responses dilute or even cancel the message the advertiserwants to convey

    2. DramaA drama is a story or play built around characters in some situation. A drama

    is a form of indirect address like a movie or a play. In a drama the characters

    speak to each other and not the audience. The audience is just an

    eavesdropper. Advertising dramas are essentially stories about how the

    world works. Viewers learn from these commercial dramas by inferring

    lessons from them and by applying those lessons by their everyday lives. A

    commercial drama can be very powerful as the viewer gets involved in the

    story development. The drama should be inherent to the product. From the

    viewers perspective conclusions drawn from dramas are their own, whereasconclusions urged in lectures are ideas that other people are trying to impose

    on them.

    Many TV ads combine lecture and drama. One common format begins as a drama, which

    is then interrupted by a short lecture from the announcer, after which the drama

    concludes.

    Styleo Straight forward factual message the advertisement usually conveys

    information. Such ads are rational rather than emotional

    o Demonstration and comparisono Problem solutionalso known as product as hero technique. The messagebegins with some problem and the product is presented as the solution to

    that problem.

    o Slice of life shows one or more typical people using the product in anormal setting.

    o Life styleshows how a product fits in with a particular lifestyle.o Fantasycreates a fantasy around the product or its use.o Mood or image builds a mood or image around the product such as

    beauty, love or serenity.

    o Musicalshows one or more people or cartoon characters singing a songabout the product.

    o Personality symbol creates either an animated or real character thatrepresents the product.

    o Technical expertise shows the companys expertise in making theproduct.

    o Scientific evidencepresents survey or scientific evidence that the brandis better or better liked than one or more other brands.

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    o Testimonial evidence features a highly believable or likable sourceendorsing the product.

    ToneThe advertiser must also choose a tone for the ad. Message tone reflects the emotion

    or attitude behind the ad. Ads can be funny, serious, sad, fearful. The advertiser mustuse memorable and attention getting words in the ad The uncola has more impact

    than 7up is not a cola.

    FormatFormat elements make a difference on an ads impact as well as its cost. The

    illustration is the first thing the reader notices, it must be strong to draw attention. The

    headline must attract the right people to read the copy. The copy must be simple but

    strong and convincing. These 3 elements must work effectively together.

    Selecting advertising media

    4 major steps in media selection

    Deciding on reach, frequency and impact

    To select media, the advertiser must decide what reach and frequency are needed to

    achieve advertising objectives.

    Reach is a measure of the % of people in the target market who are exposed to the ad

    campaign during a given period of time.

    Frequency is a measure of how many times the average person in the target market is

    exposed to the message.

    Impactis the qualitative value o