20-12-2018

Introduction to
Advertising
Management

Marketing Mix

“The process of planning Product

and executing the

conception, pricing,
promotion, and
distribution of ideas,
goods and services to Promotion Marketing Price

create exchanges that

satisfy individual and
organizational
objectives.” Place

American Marketing
Association

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What is Marketing communication?

 Involves all activities concerned with effectively

communicating product information to selected
target audience (TA)
 TA: a group of consumers to whom marketing
communication messages are directed
 Purpose: Seek a cognitive(consumers mind),
affective (change an attitude) or behavioural
(consumer action)response from the target audience

Marketing communication mix

Unconv
Advertis
entional
ing
Tools
Inform
Sales
Interacti
ve Tools
Promoti and
on
persuade
Direct
Marketi
Public
Relation
customers
ng s

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Marketing communication mix

divided into :

 High control messages : elements of mix over

which org has greater control since they can be
explicitly planned, executed, delivered to
consumers . E.g. Advertising, SP, DM, Special
events etc

 Low control messages: No formal design,

spontaneous. E.g. grapevine, employee behavior,
consumer WOM.

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Mix also divided into :

ATL (Above the line) BTL (Below the line) TTL (Through the line)

• Incl. activities carried • Incl. activities non media • Involves both ATL & BTL
through mass media communication, non in which one promotion
like TV,radio, media Advertising Direct alludes to another thus
Mail, Event Marketing, crossing the “Line”
newspaper etc Interactive Marketing, • Eg newspaper ad directs
• More effective incase Promotional Marketing, consumers to store
of large target groups • More effective in case of • Eg using Social media,
• Focusses on delivering limited and specific target You tube, Google
a “message” groups AdWords
• Eg any TV ad • Focusses on delivering a
“experience”
• common technique used
for "touch and feel"
products
• ensures recall of the brand
while at the same time
highlighting the features
of the product.
• Eg consumer experience
booths- Dove,Lakme
,Tata Shaktee

ADVERTISING
• Any paid form of non-
personal presentation
and promotion of ideas
or products by an
identified sponsor

• Objectives
– Inform
– Persuade
– Remind
– Reinforce

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Characteristics of Advertising

 Paid form : Advertising space or time must be

purchased
 Non personal : Not direct to individual but to
masses
 Presentation : the format of communication
 Promotion : objectives of Advertising
 Identified sponsor : brand or Advertising agency
that is communicating

Objectives of Advertising
Inform Persuade Remind Reinforce

• To let people • Induce people • Used with • Convince

know of to buy mature current
product • Used in growth products customers that
availability stage they have made
• People are the right choice
• Information • Reasons to buy aware of the • Ads reinforce
based by superiority product key benefits
or comparison • Reinforce the and depict
satisfied
• Used in product and
message consumers to
preliminary • Eg Rin vs Tide reassure current
stages of
consumers of
product launch • Eg Amul butter their choice
• Eg Coaching
• Eg Any launch classes
Advertising.

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ADVERTISING
Strengths Weaknesses
Informs,
persuades,
Expensive
reminds,
reinforces

Builds brand
Cluttered
equity

Can reach large

audiences

ADVERTISING TYPES

Selective-
Brand-building Public service
demand

Tactical
Corporate B2B
-Direct response

National Advocacy Trade

Retail Primary-demand Professional

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Brand building Advertising

 Focuses on creating
product awareness and
building brand image
 Strategic and long term

Tactical Advertising

 Aimed at solving specific

marketing problem
 Medium to short term
 E.g. limited time offer,
price change etc.

IndusInd Bank launches two-in-one Duo Card

https://www.youtube.com/watch?time_continue=42&v=7Wr6LJb-
zcQ

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Direct response Advertising

 Delivered straight to consumer and

includes an offer
 Aims at stimulating sales

National Advertising

 Done by large companies on

a nationwide basis on
national media
 Informs about companies or
reminds about brands

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Retail Advertising

 Done by retailers on
local basis
 Aimed at store traffic,
image or to trigger sales

Public service ads

 Cause of public good

 Non profit reasons by associations or organizations to create public
awareness

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Corporate Advertising

 Focuses on establishing corporate identity

 Brand building and used to build brands

Advocacy Advertising

 Company advocates for an

issue by taking a stand

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Primary demand
Advertising

 Intends to build demand for an entire product

category by concept selling
 Used by market leaders or category creators

Selective demand Advertising

 Aims at building demand for a specific brand.

 Category is well developed, aim is for brand differentiation

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B2B advertising

 Directed for institutional

consumers who do not
buy for self consumption

Trade Advertising

 Targeted to channel members like distributors,wholesalers etc.

 Encourages them to stock, informs and advocate the product to
consumers

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Global advertising

We all know McDonald's is a successful global brand, so unlike

its menu, I'll keep it light.
While keeping its overarching branding consistent,
McDonald's practices 'glocal' marketing efforts. McDonald's brings a
local flavor, literally, to different countries with region-specific menu
items. In 2003, McDonald's introduced the McArabia, a flatbread
sandwich, to its restaurants in the Middle East.

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Professional

 Targeted to professionals to encourage them to use the product in

their business operations
 E.g. engineers ,lawyers doctors etc

SALES PROMOTION

Sales Promotion Consists Of A Diverse Collection Of

Incentive Tools, Mostly Short-term, Designed To
Stimulate Quicker And / Or Greater Purchase Of A
Particular Product By Consumers Or Trade.

While Advertising Offers A Reason To Buy, Sales

Promotion Offers An Incentive To Buy.

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REASON FOR SALES PROMOTION INCREASE

1. Many Brands & Seen As Similar

2. Competition Uses It
3. Consumers More Price Oriented
4. Trade Demands More Deals
5. Advertising Efficiency Declined
6. Media Clutter

WHY SALES PROMOTION POPULAR

1. Sales Promotion Produce Results

2. Sales Promotion Produce Results Quickly

3. Sales Promotion Is Always Welcomed By All - Consumers, Trade,
Salesforce
4. Sales Promotion Is Relatively Easy & Inexpensive To Implement
5. Most Product Managers Are Under Great Pressure To Increase Their
Current Sales
6. Small Share Firms Find It Advantageous To Use Sales Promotion As
Cannot Afford To Match Market Leader’s Large Advertising Budgets
& Cannot Obtain Shelf Space

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TYPES OF SALES PROMOTION

1) CONSUMER PROMOTION - Tools Are Samples, Coupons,

Rebates, price Offs, Premiums, Patronage Rewards, Free Trials, Prizes,
Cross Promotions, Point Of Purchase Displays, Demonstrations,
contests

2) TRADE PROMOTION - Tools Are Price Offs, Advertising &

Display Allowances, Free Goods, sales Contests, cooperative
Advertising, training Programs

3) BUSINESS PROMOTION - Tools Are Trade Shows, Fairs,

Conventions, Specialty Advertising

4) SALES FORCE PROMOTION - Contests

BALANCING SALES PROMOTION

HOW MUCH IS TOO MUCH?

Strengths Weaknesses
Immediate results Short-term results

Direct impact on sales Makes consumers deal prone

Measurable May erode brand equity & loyalty

Clears extra inventory Cluttered

Fights competitive promotions

Less expensive than advertising

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DIRECT MARKETING

TOOLS
• One-to-one approach that uses
advertising media to produce an Direct mail
inquiry, a transaction and some
other immediate response
Direct response TV/radio
• No intermediary between
manufacturer and customer
Mail-order catalogues
• Requires a database

Internet

Telemarketing…

DIRECT MARKETING

Strengths Weaknesses
Highly targeted Expensive

Measurable Not suitable for large audiences

Personalization & customization

possible

Two-way communication

Relationship building

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PUBLICITY
TOOLS
Non-personal Press Releases

communication by Press Conferences

third-party sources
Special Events
regarding an
organization’s Opinion Polls

products Interviews

Contests

Weblog Write-ups…

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PUBLIC RELATIONS (PR) TOOLS

Publicity tools

• Positively
influencing public Community affairs
opinion to build
goodwill, and earn Events and conventions
appreciation and
acceptance Lobbying…

• May result in
publicity

THE PUBLICS OF PR

Community

Media Customers

PR
Government Employees

Shareholders

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PUBLICITY/PR

Strengths Weaknesses
Builds goodwill Little control

Low cost Hidden costs

Reaches many audiences Difficult to measure

No direct impact on sales

#BeTheBetterGuy campaign featuring Shah

Rukh Khan by Hyundai
The campaign urges people to #BeTheBetterGuy on the road for their
own safety and for the safety of others

https://www.youtube.com/watch?time_continue=92&v=JH6uHHHHSVI

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This film marks the phase III of #BeTheBetterGuy road safety

initiative by Hyundai since 2016 and highlights the need for
good practices such as:

1. Usage of seat belt

2. Don’t drink & drive
3. Respect for pedestrians
4. Don’t over speed
5. Don’t use mobile phones while driving
6. Follow traffic signals
7. Discouraging underage driving

Safe Move
‘Safe Move’ is one of the key pillars of Hyundai Motor Group’s long-term
road-safety CSR initiative across the globe. ‘Safe Move' – road safety
campaign in India focuses on spreading awareness about the importance of
road safety to bring about a significant behavioural change among masses

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Hyundai is also conducting on

ground activations at across 11 cities
and 14 malls

TTL
The #BeTheBetterGuy- Road Safety awareness film is unique in nature as it
highlights various situations in our day-to-day life highlighting actions which
can prevent road accidents. The film also features Hyundai’s Corporate Brand
Ambassador Mr. Shah Rukh Khan persuading safe driving practices.

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Hyundai is also conducting on

ground activations at 100 schools
across

Speaking about the campaign, Hyundai Corporate Brand

Ambassador Shah Rukh Khan said, “Roads will be safe
only if each one of us becomes the Better Guy. ‘Be The
Better Guy’ for your safety and for the safety of others on
the Road”.

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INTERNET TOOLS

Websites

Emails

Blogs

Discussion forums

Online games…

INTERNET AS A
COMMUNICATION TOOL

Strengths Weaknesses
Direct, interactive Smaller audiences

Low in cost Difficult for non-savvy audiences

Personalized

Targeted

Up-to-date

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PERSONAL SELLING
Personal presentation by a
representative of an
organization with the purpose Strengths
of influencing consumer
buying decision, making a Targeted, flexible,
sale, or building long-term interactive, measurable,
relationships offers immediate feedback,
ideal for high-value & high-
deliberation products &
niche audiences

Weaknesses
Expensive, not suitable for
large audiences

UNCONVENTIONAL MEDIA

Packaging

Customer
POP
Service

Novel
Events, Media Advertising
Trade Shows Specialties

Sponsorships

Pics next slide

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Snapchat launches SRK-inspired Filter to celebrate

the superstar's 53rd birthday
The actor has also joined the app on his birthday

The King of Bollywood, Shahrukh Khan, made

his debut on Snapchat, as one of the newest
Official Stories on the popular photo-messaging
app. To celebrate King Khan’s 53rd birthday,
Snapchat has introduced a unique Filter for
diehard SRK fans.
Inspired by this tradition, of fans gathering
outside Mannat, Snapchat has developed a
custom illustration of Shahrukh Khan in his
traditional pose, which Snapchatters can
overlay on their Snaps.
This is the first-ever Bollywood star-inspired
Filter for Snapchatters to create their own Snap
moment and celebrate with King Khan.
Users can scan the Snapcode (iamsrk) to add
SRK on the app and be a part of his
birthday celebrations.

Integrated Marketing
Communications (IMC)

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Oreo biscuits- IMC in India

 Key consumer insights- Every day moments of

connection- the Indian habit of dunking biscuits in tea
and milk
 The company has used a mix of TVCs, outdoor
campaigns, on-ground activation and digital outreach
for its launch, however the major thrust has been on
TV

Advertising

 Key theme : “Twist Lick Dunk”

 Brand icons: Small children,teenagers,popular actors
 show the idea of fun frolic and the joy of splitting an
Oreo with your family/loves ones.
 Concept of Daily Dunks
 https://www.youtube.com/watch?v=xr2Qkd8ucfQ

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OOH

 OOH (Out-Of-Home)
media in major cities
(Mumbai, Chennai,
Bangalore,
Hyderabad, Delhi and
Kolkata), setups in
malls, amusement
parks, multiplexes and
retail outlets to engage
with families,
specifically the
children.

POPs

 The POP’s and the placement of

product on the shelves of the
supermarkets play an important
role sales promotion and helps
attract customer attention. Often
these POPs have salesmen
around them for personal selling.

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Events
 Events: experiential
marketing
 The 100th birthday of OREO
was huge PR program where
games and interesting
activities were designed for
the people. Huge space of
newspapers, supplements,
social media were full of
stories about OREO. The
million of fans the brand has
from all across the world
played and integral role to
viral its PR.

BTL
 Biscuits are usually cluttered in one place in
large store formats, so we have created special
Oreo panels to make the brand visible, it is
called the wall of blue.”
 Candid Marketing is executing the ‘Oreo
togetherness’ bus activity for the brand-
Cadbury India has launched Oreo-Time
initiative, as a part of which a fully branded
‘Oreo togetherness’
 Bus will travel across nine cities including New
Delhi, Mumbai, Bangalore, Ahmedabad, Pune,
Lucknow, Hyderabad, Kolkata and Mysore.
 Bringing the Oreo-Time movement to life are
the special activities planned in and around the
bus. Parents will be encouraged to take the
Oreo Pledge, which stands for a promise to
spend more time with the children.
 Making the zone even more fun for families are
various interactive activities based on Oreo’s
much-loved ritual of ‘Twist-Lick and Dunk’.

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Social media

 34 Millions + fans on
Facebook, 161 K+
followers on Twitter, 20
Million + views on
YouTube, 95K+
followers on Instagram,
3K+ followers on
Pinterest. Most of the
Oreo followers on
Facebook are teenagers

Definition by AAAA

… a concept of marketing communications planning that

recognizes the added value of a comprehensive plan that
evaluates the strategic roles of a variety of communications
disciplines-for example, general advertising, direct
response, sales promotion and public relations-and
combines these disciplines to provide clarity, consistency,
and maximum communications’ impact through the
seamless integration of discrete messages

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Traditional Marketing Approach

 Many of the marketing and promotional functions were

planned and managed separately with different
budgets, different views of the market, and different
goals and objectives.
 Many marketing activities, such as package design,
sales promotion, and direct marketing services, were
viewed as ancillary services and handled on a project
basis rather than integrating them into the IMC program.
 The disconnected puzzle pieces demonstrate how
traditional approaches to marketing communications
viewed the various IMC tools as separate pieces of the
puzzle, rather than having them all work together.

Contemporary IMC Approach

 This approach seeks to have all of a company’s

marketing and promotional activities project a consistent,
unified image in the marketplace.
 It calls for a centralized messaging function, so that
everything a company says and does communicates a
common theme and positioning.
 the contemporary approach to marketing
communications, is coordinated and consistent.
 The connected puzzle pieces demonstrate how the
various IMC tools are coordinated with media
advertising and work together in a seamless fashion to
create an effective communications program.

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Growing Importance of IMC

 Strategic integration of communications functions
 Avoids duplication
 Synergy among promotional tools
 More efficient and effective marketing
 Rapidly changing environment
 Consumers
 Technology
 Media
 Market: Cluttered with competitors and difficulty to
get message across to audience

INTEGRATED MARKETING
COMMUNICATION (IMC)
• Goal is for various promotional tools to provide
consistent messages to target audiences for clarity,
consistency & impact
• One voice, one message, one strategy

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Defining IMC- Don Schultz of Northwestern

University

IMC is a strategic business

process used to plan, develop,
execute and evaluate coordinated,
measurable, persuasive brand
communication programs with
consumers, customers, prospects
employees and other relevant The goal of IMC is to
external and internal audiences. generate short-term
financial returns and build
long-term brand value.

 Contemporary Perspective of IMC/ There are several

important aspects of the definition of IMC:

 Recognized as a business process – rather than just tactical

integration of various communication activities.
 Importance of relevant AUDIENCES – externally these include
customers, prospects, suppliers, investors, interest groups, and the
general public. Employees are an example of an internal audience.
 Demand for accountability – increased emphasis on the
outcomes of marketing communication programs.

 Thus, IMC involves more than just coordinating the various

elements of a marketing and communications program into a
“one look, one voice” approach.

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Behind the Growing Importance of IMC

R
From Toward
Media advertising Multiple forms of communication

Mass media Specialized media

Manufacturer dominance Retailer dominance

General focus Data-based marketing

Low agency accountability* Greater agency accountability*

Traditional compensation Performance-based compensation

Limited Internet availability Widespread Internet availability

* article on the topic PTO

THE BIG DEBATE: Should clients pay agencies to pitch?

Given the high expense of pitching, could it be about time for clients
to pay a fee to their pitching agencies as a standard price?

 Ajay Kakar, CMO, Aditya Birla Capital, acknowledges that it means a lot
of investment of time and effort at both ends and it is reasonable and
professional for an agency to ask for a pitch fee. “It is a barometer of the
client’s seriousness. Also, no one values anything that comes for free,” he
opines.
 Kakar recollects that pre-launch of ICICI was when they had first called
for a pitch. “20 agencies were invited at the same time and at the same place.
And all 20 landed up. If that’s the eagerness of the agencies to pitch, why will
a client say no?. “I suggest that the agencies do it. And if there is a tempting
brand, do test the client’s intent and seriousness. Ask for a pitch fee,” Kakar
advises.
 B. Krishna Rao, Category Head, Parle Products, states that a pitch fee
according to him is not justified, though he admits to all the work that goes
on the agency’s side.
 Anirudh Pandharkar, Head of Marketing, VIP Industries, signals that it is
also in the client’s interest to pay the pitch fee so that the client gets the best
output from all participating agencies. This creates a win-win situation,” he
says.

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AUDIENCE CONTACTS/TOUCHPOINTS

A contact or a touch point refers to each and every

opportunity the customer has to see/hear about the company
and/or its brands or have an encounter/experience with it.
Company created Customer initiated
Intrinsic touch Unexpected touch touch points: occur
touch points: are points: Are
planned mktg points: interactions when the customer
that occur with the unanticipated
communication references or contacts the
messages created co/brand during information about a company.
by co such as buying or using. company or a brand
that a company or
prospect receives E.g. call
Advertising, E.g. interactions beyond org control. centre,website,em
websites, with retail sales or ail
brochures etc CSR E.g. WOM

 First moment of truth (FMOT): When a customer is confronted with

the product in-store or in real life.

 Second moment of truth (SMOT): When a customer purchases a

product and experiences its quality as per the promise of the brand.

 Third moment of truth (TMOT): Consumers feedback or reaction

towards a brand, product or service i.e. consumer becomes brand
advocate and gives back via word of mouth or social media publishing.

 Zero Moment of truth (ZMOT) is a term coined by Google in

2011,actually refers to the research which is conducted by a user online
about a product or service before taking any action i.e. searching for
mobile reviews before making a purchase.

 The less than Zero Moment of truth (<ZMOT) is a term started by

eventricity Ltd in 2014,referring to the time between an Event in a
Customer's life happening and the point at which they decide to research
a purchase (ZMOT).

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The IMC Planning Process

 Developing an integrated marketing communications plan
requires

Planning
Executing
Evaluating
Controlling

Basic Elements of a IMC planning process

Plan
1. A detailed marketing situation analysis-environment, customer,
competition , company ,brand ,market

2. Specific marketing objectives

3. A marketing strategy and program

4. A program for implementing the strategy

5. A process for monitoring and evaluating performance

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Model of the IMC Planning Process

Review of marketing plan

Analysis of Promotional program situation

Analysis of communications process

Budget determination

Develop integrated marketing communications program

Sales PR/ Personal Direct Internet/

Advertising
promotion publicity selling marketing interactive

Develop objectives and strategy for each

Develop message, media strategy, and tactics

Integrate and implement marketing communications strategies

Monitor, evaluate and control IMC Program

Details PTO

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Review of Marketing plan

 Have the objectives been achieved? why or why

not? Or what new objectives we wish to set for
new year based on current achievement
 What strategies need to be changed ?(S or T or P or
Mktg mix)
 What changes have occurred in the
macroenvironment and micro environment to
warrant the change ? ( includes both internal and
external analysis)
 Includes analysis of macroenvironment (PESTEL),
and analysis of microenvironment - customers ,
competitors ,company , brand, market

Review of Marketing plan

(contd)

 Macroenvironment eg demonization and opportunities for

paytm
 Consumer characteristics – Femina modern woman
 Competition – H & C vs keo karpin ,yippee ,we changed
(airlines )
 Target mkt – thanda matlab Coca cola ,expanding mkt Cadbury
 Positioning -Taste bhi health bhi
 Image –worms controversy

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Aashirvaad Atta - Pushton Ka Aashirvaad

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1. Promotional program situational

analysis- Includes both internal and external

 Internal analysis:
- assesses relevant areas involving the product/service offering and
the firm itself.
- the successes and failures of past programs should be reviewed.
- should study the relative advantages and disadvantages of
performing the promotional functions in house as opposed to hiring
an external agency
- assessing the strengths and weaknesses of the firm or the brand
from an image perspective
- assesses the strengths and weaknesses of the product or
service; any unique selling points or benefits it may have; its
packaging, price, and design;

1. Promotional program
situational analysis
 External analysis:
 such as characteristics of the firm’s customers, market
segments, positioning strategies, and competitors,
 Consideration of customers’ characteristics and buying
patterns, their decision processes, and factors influencing their
purchase decisions.
 consumers’ perceptions and attitudes, lifestyles, and criteria
for making purchase decisions.
 The attractiveness of various market segments must be
evaluated and the segments to target must be identified.
 Once the target markets are chosen, the emphasis will be on
determining how the product should be positioned.

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2. Analysis of communication
process
 examines how the company can effectively communicate
with consumers in its target markets.
 The promotional planner must think about the process
consumers will go through in responding to marketing
communications.
 Analyze source, message, channel factors
 Establish communications goals and objectives
 Communication objectives may include creating awareness or
knowledge about a product and its attributes or benefits;
creating an image; or developing favorable attitudes,
preferences, or purchase intentions.

3. Budget determination

 What will the promotional program cost?

 How will the money be allocated?

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4.Developing the IMC program

 Decisions regarding the role of each IMC element and

its coordination is decided
 Involves developing the message (creative strategy)
and media strategy (channel, type, cost effectiveness
etc)
a. Set advertising objectives
b. Determine advertising budget
c. Develop advertising message
d. Develop advertising media strategy
e. Decide the agency type and role of each agency

5. Monitoring, Evaluation, and

Control
 to determine how well the promotional program is
meeting communications objectives and helping the
firm accomplish its overall marketing goals and
objectives.
 The promotional planner wants to know not only how
well the promotional program is doing but also why.
 to provide managers with continual feedback
concerning the effectiveness of the promotional
program, which in turn can be used as input into the
planning process

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The Communication
Process

Communication

 The imparting, sharing, exchanging of

information, news, views, thoughts attitudes or
ideas between two or more people

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Components

• The person/org that has information to share

with other person/group
Sender/source • Source (Individual- sales ppl)or non personal.
• Receivers perception based upon the source
knowledge and reliability

• Source selects the words/symbols/visuals to

Encoding represent the message sent to receiver-
encoding
• Has to be understood by the receiver

• Encoding leads to message formation

• Message –
Message verbal/nonverbal,oral/written/symbolic,transm
ittable form
• Content,structure design

Sender/source

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Encoding

Ariel- stay stain free

Message

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Components

• Method by which the communication travels from

Channel source to receiver
• Personal, non personal , WOM

• Is the person with whom the sender shares thought

Receiver or information
• Are the TA who read,see,hear the message and
decode it

• Is the process of transforming the senders message

back into thought

Decoding • Influenced by receivers frame of reference or field

of experience
• Like experiences, perceptions, thoughts attitudes
and values

Decoding

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Components

• Message is subject to unplanned extraneous

Noise
factors which interfere /distort with its
reception- noise
• using unfamiliar symbols, lack of common
ground, problems in transmission

• The receivers set of reactions after seeing,

hearing or reading a message is known as a

Response response.
• Can range from non observable actions-
storing in memory to immediate action
• Marketers – initiate feedback

Noise

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Successful Communication

Select an appropriate source

Develop a properly encoded message

Select appropriate channel for target audience

Receive feedback

Four Types of Buying Behavior

(Henry Assael, 1987)

High Involvement Low Involvement

Complex buying Variety-seeking buying

Significant Differences behavior behavior
Between Brands computer cookies

Dissonance-reducing Habitual buying

Few Differences buying behavior behavior
Between Brands Website comparison salt

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Complex buying behavior

 Consumers engage in complex buying behavior when they are
highly involved in a purchase and aware of significant
differences among brands.
 This is usually the case when a product is expensive, bought
infrequently, risky, and highly self –expressive, like an automobiles.

When this happens, the company marketing the product should take
following step:

 The company marketing the product should establish belief in the

brand, provide plenty of information and ensure that their product
is different from others.

Dissonance reducing buyer behavior

 Consumers sometimes engage in highly involved in a purchase
but sees little differences in brands.
 The high involvement based on the fact that the purchase is
expensive, infrequent, and risky.

When this happens, the company marketing the product should take
following step:

 Focus on quality differences in the brands & price or

convenience.
 In this case the buyer will shop around to learn what is available.
If they find quality differences in the brands, they might go for
the higher price. If they find little differences, they might simply
buy on price or convenience.

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Habitual buying behavior

 Many products are bought under conditions of low involvement and
the absence of significant brand differences, for example: salt.
 There is good evidence that consumers have low involvement with
most low-cost, frequently purchased products.

In this situation the following methods should be tried :

 Lower price and offer sales promotions to try to make people want
to buy.
 In advertisements, make sure that more visuals are used than text.
 Television is a great way of promoting this kind of product.

Variety seeking buying behavior

 Some buying situations are characterized by low involvement but
significant brand differences.
 Here consumers often do a lot of brand switching.
 Brand switching occurs for the sake of variety rather than
dissatisfaction.

When this happens, the company marketing the product should

take following steps:
 They should try to get customers to continue to buy their
product.
 Make Sure that the product is always available for the customer.
 Smaller companies should use sales promotion techniques to
gain more customers.

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Analyzing the receiver

Mass market and Audiences markets consisting of large numbers of

potential customers

Market segments broader classes of people who have similar needs

and can be reached with similar messages

Niche smaller, well-defined markets consisting of

markets
customers who have similar needs

Individual
and group those with specific needs, for whom a message
audiences must be specifically tailored

Traditional Response Hierarchy

models

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Three Basic Stages

 Cognitive stage (think): what the receiver knows or

perceives about the particular product or brand.
 Affective stage (feel): the receiver’s feelings or affect
level for the particular product or brand.
 Behavioral or Conative stage (do): the receiver’s
action toward the particular product or brand.

1. AIDA Model
 A- Attention: Most of the TA is unaware of the product/brand and
hence communicators objective is to build awareness. For new
product category- stage is important.

 I-Interest: Customers move from A-I. Marketers need to find out how
they feel about the product raise customer interest by focusing on and
demonstrating advantages and benefits. E.g.- Mutual Funds

 D-Desire: Need to create a desire and preference for the advertised

product. Can be build by showing how a product addresses specific
needs and by creatively promoting quality and value.

 A-Action: should propel TA towards the ultimate objective- Customer

action viz buy and use the product, generate enquiries, visit a store etc.

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Example- Website

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2.Hierarchy of effects model

(Lavidge and Steiner, 1961)
 Consumers – do not switch from being
disinterested individuals to convinced
purchase in one instant step.
 Awareness → Knowledge → Liking
→ Preference → Conviction →
Purchase
 Premise: advertising effects occur
over a period of time.
 A paradigm for setting and measuring
advertising objectives
Expl PTO & Video

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From Awareness to Action

Point of purchase
Conative Purchase Retail store ads, deals
Realm of motives. “Last-chance” offers
Ads stimulate or direct Price appeals
desires
Conviction
Testimonials

Preference Competitive ads

Affective Argumentative copy
Realm of emotions.
Ads change attitudes Liking “Image” copy
and feelings Status, glamour appeals

Knowledge
Announcements
Descriptive copy
Cognitive Classified ads, slogans,
Realm of thoughts. Jingles, skywriting
Ads provide information Awareness
Teaser campaigns
and facts

The Innovation Adoption model

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X Shampoo
 Objective 1: Create awareness among %90 of the target audience. Use repetitive
advertising in newspaper, magazines, TV and radio programs. Simple message

 Objective 2: Create interest in the brand among %70 of the target audience.
Communicate information about the features and benefits of the brand-i.e., that it
contains no soap and improves the texture of the hair. Use more copy in ads to
convey benefits.

 Objective 3: Create positive feelings about the brand among %40 and preference
among %25 of the target audience. Create favourable attitudes by conveying
information, promotion sampling, etc. refer consumer to website for more
information, beauty tips, etc.

 Objective 4: Obtain trial among %20 of target audience. Use sampling and
money-off coupons along with advertising and promotion. Offer coupons through
websites.

 Objective 5: Develop and maintain regular use of X Shampoo among %5 of the

target audience. Use continued-reinforcement advertising, fewer coupons and
promotions. ıncrease communications efforts to professionals.

DAGMAR

Awareness
Define
Advertising
Goals for Comprehension

Measuring
Advertising Conviction
Results
Action

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DAGMAR
 Defining Advertising Goals for Measured Advertising Results',
abbreviated to DAGMAR,was proposed by Russell H.Coney in 1961.
 Colley suggested that achievement of a hierarchy-of-communications
objectives leads to actual purchase.
 Advertising goals are measured in terms of the customers' movement along
the hierarchy.

 The various stages in this model are as follows:-

1) AWARENESS:- In this stage the customer becomes aware of the
product.
2) COMPREHENSION:- The customer is aware of the product
characteristics and its uses. He is also familiar with the brand name and
brand logo.
3) CONVICTION:-This stage refers to the emotional decision of
preferring one brand to another's.
4) ACTION:- In this stage the purchase is made.

 The DAGMAR model assumes a high-involvement "learn-feel-do"

hierarchy.

DAGMAR

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HOW IT WORKS (EXAMPLE):

 For example, let's assume that Company XYZ wants to measure the effectiveness of
the marketing campaign for its latest Widget. The company starts testing a
commercial that is designed to move potential customers through the four stages of
the purchase process:
 1) In the awareness stage, Company XYZ makes the consumer aware that there is a
new Widget on the market.
 2) In the comprehension stage, Company XYZ shows consumers the new Widget's
features and reminds the consumer of Company XYZ's logo and brand name.
 3) In the conviction stage, Company XYZ helps the consumer emotionally attach
to the new Widget so that the consumer establishes an emotional preference for the
Company XYZ brand.
 4) In the action stage, Company XYZ gets the sale.
 Company XYZ then measures the success of the marketing effort using DAGMAR.
The company gauges how far the customer proceeded through the four stages of
the purchase process, and how many sales were generated. If the customers get
stuck in one of the first three stages and the company doesn't meet sales goals, the
company knows it needs to change its ad campaign.
 WHY IT MATTERS:
The DAGMAR method is a long-established method of creating effective advertising.
The idea behind the method is to communicate rather than sell.

Pros and Cons of DAGMAR

Pros Cons

Focus on communications Relies heavily on the response

objectives hierarchy

Measurement of stages
May not increase sales

Better understanding of goals and

objectives Practicality and cost

Less subjective
Inhibition of creativity

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Information Processing Model of Advertising Effects

(William McGuire, 1978)

 Presentation → Attention → Comprehension

→Yielding → Retention → Behavior
 Assume that the receiver in a persuasive
communication situation like advertising is an
information processor or problem solver.

 McGuire’s model includes a stage not found in the

other models: retention, or the receiver’s ability to
retain that portion of the comprehended information
that he or she accepts as valid of relevant.

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Implications of traditional hierarchy

models

 Outline the series of steps the potential purchasers

must be taken through from unawareness to purchase
 Buyers are at diff stages of buying process- so advt
has diff set of communication problems.
 Helps to measure the success of communication
effectiveness by understanding the stage of
consumers

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Alternative response hierarchy

Alternative response hierarchy

 Consumer decision making varies across the nature of
product/service offerings.
 some purchases are backed by a lot of cognition and
thinking, while others are based on feelings and emotions.
 The combination of these reference points produces a strategy
matrix.
 The marketer has to choose appropriate strategies for different
kinds of product/service offerings.
 The learn-feel-do model is a simple matrix that links
consumer decision making and consumer choices to three
components which are information (learn), attitude (feel), and
behavior (do).

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Alternative response hierarchy- Michael Ray

 -a model of information processing based on perceived product
differentiation and product involvement.
 The Standard Learning Hierarchy = learn- feel-do sequence.
The consumer is viewed as an active participant and this sequence is
likely when there is a lot of differentiation among brands and the
consumer is highly involved in the purchase process.
 The Dissonance/Attribution Hierarchy = do- feel- learn sequence.
Occurs when consumers must choose between two alternatives that are
similar in quality but are complex and may have unknown attributes.
Focus of mass media should be on reducing dissonance after
purchase.
 Low involvement Hierarchy = learn –do- feel sequence.
Occurs when involvement in the purchase decision is low, there are
minimal differences among brand alternatives, and mass-media
advertising is important.

FCB Planning model

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W
FCB Grid- Foote Cone &Belding
Grid
 combines high and low involvement, and left(rational,
cognitive) and right(emotional and visual) brain
specialization.
 It shows a visually coherent matrix which has four
quadrants with two factors—high and low involvement,
and feeling and thinking.
 outlines 4 primary advt strategies- informative,
affective, habit formation and satisfaction

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FCB grid
High Involvement:
 Very important decision
 Lot to lose if you choose the wrong brand
 Decision requires lot of thought
Low involvement :
 Unimportant decision.
 Little to lose if you choose the wrong brand.
 Decision requires little thought
Think or rational approach
 Decision is mainly logical or objective
 Decision is based mainly on functional facts
Feel or emotional approach
 Decision is based on a lot of feeling
 Decision does express one’s personality
 Decision is based on looks, tastes, touch, smell, or sound (sensory
effects)

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 Informative
For highly involving products and services where rational thinking W
and economic considerations prevail and follow the std learning
hierarchy
Key Driver – “Demonstration”

Typical Categories – Electronics, Financial services (Credit cards,

Insurance)

Type of Purchase – Learn, Feel, Do

The purchase process for an average consumer in these type of categories

is generally quite confusing and not very enjoyable.
Strategy should revolve around helping the consumer make quick
choices – typically between costs vs product specs, information,
warranties, service, etc.

Creative Strategy – Detailed information, Product Demonstrations

Media Strategy – Long Copy format, Print, Infomercials

 Affective W
For high involving /feeling purchases
Advt should stress psychological and emotional motives- self
esteem,image or ego

Key Driver – “Impact”

Typical Categories – Luxury goods, Beauty products.

Type of Purchase – Feel, Learn, Do

These product categories are often imagery driven purchases,

wherein a ‘self image’ is bought by the consumer. The
communication strategy should also revolve around creating
‘that’ aura behind the brand.

Creative Strategy – Focus on Execution, Strong, Impactful

visuals

Media Strategy – Large Space, Spread ads, Image specials, TV

with visual impact.

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 Habitual
Low involvement/thinking products with routine behaviour W
patterns that learning occurs after a trial purchase
Key Driver – “Reminder”

Typical Categories – Mostly household items that form part of

your shopping list once a month (Razor blades, bleach, washing
powder, Toothpaste).

Type of Purchase – Do, Learn, Feel

Marketing wars here are won by differentiation and generation
of loyalty. These are quite mundane purchases and the trick is to
develop audio / visual cues that can quickly develop top of mind
loyalty – visual mnemonics, slogans, jingles – catch the right one
and you are home !

Product claims can also work sometimes (“80% whiter clothes” –

whatever that means).

Creative Strategy – Reminder ads, repetition, Catchy slogans,

Jingles

Media Strategy – Point of Sale, TV, Radio, Small space ads.

 Satisfaction
For low involvement /feeling products where appeal to sensory
W
pleasures and social motives are important

Key Driver – “Attention”

Typical Categories – Beer, Colas, Cigarettes, Juices, Sauces,

Deodorants

Type of Purchase – Do, Feel, Learn

These are often impulse buys aimed at ‘Satisfaction’. While the

stated need is ‘taste’, ‘smell’, ‘flavour’; a deeper need is to satisfy
feel good factors or a deeper bond between the user and the
product.

Creative Strategy – Attention getting, Drive Impulse purchase,

Imagery

Media Strategy – Newspapers, Bill boards, Point of Sale

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Theory of Cognitive Dissonance

 When a person is confronted with inconsistence among

attitudes or behaviors, he or she will take some action to
resolve this “dissonance,” perhaps by changing an attitude or
modifying a behavior.
 It helps to explain why evaluations of a product tend to
increase after it has been purchased.
 One implication of this phenomenon is that consumers
actively seek support for their purchase decisions.

Annexures

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Mc Donald's strategy
 Ronald McDonald is the key in-store promotional figure. Very
seldom do you see him on television commercials and, when
you do, you see him publicizing in-store promotions.

Ronald, very cleverly, has become McDonald's point of

differentiation in each market.
 He celebrates Christmas in Northern Europe and the Chinese
New Year in Hong Kong. He promotes McDonald's wine in
France and McDonald's Filet-o-Fish in Australia. But he never
appears in globally accessible media.
 McDonald's' global messages come through television
commercials. The corporation produces local adaptations of
these, too. But you can see McDonald's local twists are
substantially stronger in the in-store promotions than on
television.

COVERT ADVERTISING

The phrase "covert advertising" refers to advertising that is hidden in other media, such as an
actor in a movie drinking a Coca-Cola. It is referred to as "covert" because it is not direct
advertising, but subliminally viewers often notice the product.

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SURROGATE ADVERTISING

Bait & Switch Advertising

 Bait and switch advertising is when a company offers consumers an
appealing deal and then changes the deal when consumers make direct
inquiries
 One of the more common examples of a bait and switch sales tactic is when
used car dealerships advertise extremely low prices on vehicles for which
they have a very limited number in stock. You might see an
advertisement for a car you would like at a price you can afford, but when
you get to the dealership the car is already sold.
 In this case, the dealer will offer to show you other vehicles you might be
interested in. This is technically legal because the dealership did have at
least one such car in stock, and it is possible that the one vehicle was
already promised to another customer when it was advertised. By the time
other interested consumers arrive, the advertised vehicle is gone and
the bait and switch is on.

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