Marketing Communication & Advertising

Nagesh Pai,

Marketing Communication & Advertising

NMIMS – IGNOU

Nagesh Pai,

Course Modules

1.Basic concepts

2.Ad. Campaign planning and execution

3.Media Planning concepts

4.Marketing Communication Form

5.Ad. Agencies strategy

6.Case studies

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1. Basic concepts

1.1 Marketing Communication Process

(about the function)

1.2 Communication – Key Behavioral concepts

(about the audience)

1.3 Indian Media Scene (about the media environment)

1. Basic concepts

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Marcom Process- Importance

• Marcom , a subset of integrated marketing effort• Most visible cue of the product – key identifier• Always on the watchdog’s eye – Consumer

groups and Law• Beyond visible advertising

1.1 Basic concepts> Marcom Process

Ref: Table 1 – roles of mkt commn

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Role of Marcom

• Marketer and consumer pair (Dyad)– Marketer’s and consumer’s goal – the perfect marriage?– Inform, Remind, Persuade– Convert latent need to awareness and purchase (Newer

products)– Consumer cynicism

• Marketer – Market Dyad– Dealer communication– Business 2 Business communication

• NGO and Social cause communication


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Concept of Marcom

• Dialogue between the buyer and seller – not just one way• For a Marketer :

– Presenting stimuli – Observe response from the TG– Act upon them– Continually find out new communication opportunities

“Firm is both sender and receiver of Market-related communication”


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Model of Communication

• Functioning of Communication (figure 1)• Marcom Process (figure 2)• Misunderstanding in communication

– Source effect (perception of the source)– Multiple channels, Similar message?– Decoding error (Softdrink ad in Saudi)– Communication noise– Inadequate feedback


Ref: Figure 2, figure 3

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Promotion Mix

• Advertising v/s Publicity• Personal selling – Advantages and limitations• Sales Promotion• Packaging

Ref: Figure 4, Table 2


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Consumer Behaviour

• Understanding and striking chord with your Target audience

• Consumer needs and Motivation– What drives him? What are her aspirations?

– How does the product satisfy it?

• Consumer Personality and Psychographics– Brand v/s customer personality

– Lifestyle statements

– Determination of objective & potency of campaign


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Consumer behaviour theories

• Consumer Perception– “Perception is all there is”

– Examples – Pringles and Aircraft

– Selective exposure

– Selective attention

• Consumer learning– Repetition – optimum frequency

– Stimulus discrimination

– Rehearsal and encoding

– Attitude

– Group behaviour


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Flashback

Doordarshan, Humlog, Ramayan, Chitrahaar,

Sunday movies, He-man, Spiderman, Samachaar

AIR, Vividhbharati, Cibaca Geetmala,

Bournvita Quiz contest

Mera Parivaar Hamara Bajaj!

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Today…..

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India Media Scenario

• Doordarshan age >>>> Cable and Satellite era• Increasing channels across multiple Genres• FM Radio• Internet and Mobile• Out-of-home

To get a critical mass of your audience, you now need more and more media vehicles

(higher dispersion)

1.3 Basic concepts> Indian media scene

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Developments across media• Press

– Publication and circulation growth– FDI in press

• Television– Evolution– Growing ad revenues

• Radio– Reach – FM boom

• Cinema– South concentration– Multiplexes, Infilm, cobranding

• Outdoors• Rural Media

1.3 Basic concepts> Indian media scene

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2: Ad. Campaign Planning and Comm. Strategy

• Planning Communication Strategy• Campaign planning – Strategic and creative• Creativity : Campaign planning and execution• Advertising research • Measuring Advertising effectiveness

2.4 Ad campaigh execn+ planning

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Communication strategy

• What is strategy?– Knowing where you want to go

– Knowing how you are going to proceed

• Strategy & vision trickling down to final action

• Promotional strategy (ref fig 1, 2 )

2.4 Ad campaigh execn+ planning> communication strategy

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Campaign planning

• Objectives– Brand awareness, sales promo, persuasion etc

• What you want to say? (Message design)– The Product– The People who will use it/ buy it– USPs / differentiation– Competitive arena– Positioning (perception aspiration)

• How you want to say? (Message development through execution)– Say it direct (central)– Say it with cues (peripheral) eg: insurance, fire extinguisher etc

• Media specific considerations

2.5 Ad campaigh execn+ planning> campaign planning

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Creativity

• Creativity – – Free and Independent– Original act of personalities around the world– State of mind with right blend of Rationality and imagination– The perfectly tuned “violin”

• Why creativity?– “we live in an overcommunicated world”– To make our message stand apart and be remembered

• Cracking Creativity process and the personality

• Creative associations

2.6 Ad campaigh execn+ planning> creativity

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Cadbury’s Dairy Milk Case study

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Advertising Research

• Monitoring of efficacy of advertising• A basis for future course• Categories

– Recall Measurement

– Attitude Measurement

– Brand Usage

– Pre-testing

– Post-testing

– Copy Testing

– Media research

– Custom Research

2.7 Ad campaigh execn+ planning> Ad. Research

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Measuring Parameters

• Awareness– Open and close-ended questions– Check list questions– Rating scales

• Recall– Aided Recall– Unaided Recall

• Attitudes– Perception measurements– Measuring scales

• Frequency of usage

2.8 Ad campaigh execn+ planning> measurement

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Advertising Research

• Copy Testing– Qualitative research on focus group– Audience impression : open ended questions– Adjective checklists– Physiological measures – body parameters

• Syndicated and Custom research– TVR data– Readership surveys and ABC circulation data

- Customized tests


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Measuring Advertising effectiveness

• Evaluate result against objectives– Objectives need not be necessarily sales

• Issues in Advertising– Advertising effects are more subtle

– Effect accrued over time

– Multiple variables

– Short attention spans and memory of respondents


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Awareness pyramid

Sales

Preference

Liking and attitude

Recall

Awareness


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3. Media Planning Concepts

• Concepts, Characteristics and Issues in Media Planning

• Media Selection, Planning and Scheduling• Internet as an Emerging Advertising Medium

3.9 Media Planning

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Advertising objectives

• Brand Objectives– Brand Growth (launch)– Brand Share Maintenance– Protection from competition

• Role of Advertising– Vehicle of direct impact– Evoking curiosity from customers– Link between customer needs and communication– Modify attitudes– Reinforce the attitudes

3.9 Media Planning

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Characteristics of various media

• Television– Audio visual appeal– High reach– High absolute cost /low cost per contact– Broadbased – not fit for localized impact– Shorter message span

• Radio – Remote reach– Higher frequency possible– Localized impact (works well with activations)– Good support / reminder medium

3.9 Media Planning

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• Newspaper– Immediacy – Announcement value– Geographic flexibility– More detailed communication possible– Limited by literacy– Short lifespan

• Magazine– Niche audience– Longer shelf life – More readers per copy– Innovations are effective

Characteristics of various media

3.9 Media Planning

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Characteristics of media

• Out – of – home– Outdoors– POPs– Cinema

• Internet and Mobile

3.9 Media Planning

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Media Planning

• Creative Advantages and Disadvantages (ref table 9.6)

• Media Options– Medium as a Medium– Medium as a vehicle– Medium as a Message

3.9 Media Planning

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Media Selection

• Media environment– Nature of medium (genre)

– Context of use

– Ways of using it

• Physical Characteristics• Exposure & Effectiveness• Media Choices – Reach and flexibility• Brand & Media personality (right ambience)• Brand Appeal vs media

– Sensory

– Rational

– Emotive

3.9 Media Planning

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Media Planning : A Process

• When? – Timing of the Ad• Which? – Selection of Media• How? – Coordination & Operations• How Much? - Budgeting

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Media Objective Parameters

• Target Audience Definition• Geographic Concentration• Timing Considerations• Reach, frequency• Creative Requirement

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Scheduling

• Steady Pulse• Seasonal Pulse• Period Pulse• Erratic Pulse• Start up pulse• Promotional Pulse

• Reach, Frequency and continuity

• National Plan, Key Market plan, Skim plan

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Media Strategy and Plan structure

• Media Strategy– Media Mix– Usage of Media– Geographic Allocation– Scheduling strategy

• Media Plan– Media Vehicle Selection– Media Plan and costing– Media activity schedule

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Internet – The sunrise medium

• 1.39 M users in 1999 – today around 50 M+ users in India

• Questions regarding Internet advertising– Cost structure– Interactivity and its effects– Measurement (analytics)

• Optimizing creatives for the Internet

• A word on social networking and Web 2.0

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4. Marketing Communication Forms

• Managing Sales Promotion• Direct Marketing• Publicity and Public Relations• Social Marketing communication

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Managing Sales Promotions

• Promotions– To Customers

– To Distributors

– To Sales force

• Objectives– Induce trials and adoption of new product

– Stabilize fluctuating sales (seasonal slumps)

– Move out slow products faster (spl. Perishable)

– Stock clearance (before launch of upgrade)

– Combat Competition

– Build Goodwill during festivities

– Build Product visibility

– Boost the trader’s moral

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Consumer promotions

• Scheme Selection– Not easily imitable

– Should be easily encashable by customers

– Ensure availability of stock well in advance

• Scheme Execution– Geographic consideration (prevent leakage)

– Involving local forces

• Promoting the promotion

• Followup and monitoring

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Consumer contest

• Contest and General Sales promo• Type of contest• Prize Schedule• Advertising and promotion for the contest• Consumer contest rules (pepsi ad)

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Trade Promotions

• Match Schemes with capability for different distributor levels• Schemes shouldn’t encourage traders to mis-sell• Booking of shelf- space well in advance (non-exclusive channels)• Gifts should have good brands and utility• Offer support like POP etc to promising dealers• Help large retail dealers with their own schemes• MRTP act on discounts.

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Managing Sales promos

• Sales incentives and rewards– Increase sales per salesperson– Boost their morale– Launch as well as revival of old products

• Organizing the contest– Fun theme– Clear rules– Participation– Promotion

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Heinz Goldman’s Don’ts of a sales promo

• Don’t reward just one person• Don’t set goals too high• Don’t start the contests towards the end of year• Don’t use sales volume alone as the parameter• Don’t use the same prizes for every contest• Don’t include just sales people in the contest• Don’t let the sales contest become a guessing game (clear purpose)• Don’t look for “fair” or a “just” contest

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Sales promos in Services

• Options available – Broader service line more challenging• Can be linked with usage levels (frequent flyers, loyalty schemes)• Consumer response may not be linear to % discount• Joint promos possible (airdeccan and cleartrip)• Promos are easily imitable• Price sensitivity• Undiscounted price is then perceived as “inflated”

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Sales Promo evaluation

• Pre-testing• Testing during the promo• Post – testing• Value of sales promo evaluation• Role of Salesforce

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Direct Marketing

• “Eliminate the Middleman”• Interactive – one on one communication with the customer• One or more advertising media• Measurable response• Transaction at any location• Direct mail, mail order, response• “As on TV”, Catalogs and infomercials• Steps in DM

– Isolate your customer (“you have been chosen”)

– Building a continual relationship

– Build a profitable relationship

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Direct marketing

• Direct marketing popularly used by– Educational and health institutions

– Pharmaceuticals

– Religious and Charitable orgns

– Theater groups and universities

• Direct marketed products should be– Unique in function and should be available only through direct channels

(eureka forbes, Quantum Mutual fund, Dell computers)

– Unusual – Stand apart from the usual market stuff

– Universal – repeat business

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Direct sales and Lead generation

• Direct sales – One step– Customer directly sees the communication and commits purchase

– Mailback coupons

– Catalogues

– TV infomercials

– Catalogues evolving with editorial content (MyWorld mag)

• Lead generation– Usually for high value goods

– Qualifying leads and then graduating them to sales

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Media for Direct Marketing

• Print Media– Size of the ad– Colour– The responsive device– Advertising environment

• Broadcast media

• Telemarketing support

Documents

Marketing Communication & Advertising