Module 2 PRCI
Module 2 PRCI
The Consumer:
• Consumers are shaping the marketplace of the future, forcing communication and distribution
channels to develop to suit their needs. Consumers are becoming more sophisticated, skeptical
and marketing literate, presenting the marketer with formidable challenges.
• The growth in consumer power and the rise of the ‘cynical individual’ response to advertising
means that companies also have to consider the transparency and integrity of their marketing
messages. Ethical issues are assuming greater importance on the marketing agenda, for
consumers are no longer passive receivers of messages, but generators of their own messages.
Contd…
• For businesses, one of the biggest impacts has been the access to information about customers
and consumers. While this obvious advantage is available to many, the most successful companies
are those that use this information to deliver superior customer value.
• companies are engaging with customers in a new and innovative way, which involves
facilitating a longer-term relationship with the customers they win. Rather than
regarding the changing business environment as unwelcome, they eagerly exploit it, to
the ultimate advantage of the consumer.
Contd…
The Media:
• In the last ten years, the world’s media map has been redrawn as a result
of media proliferation and fragmentation. In the past, it was easy for
companies to reach a large number of consumers with relatively few
advertisements.
• The increase in network and satellite television channels, information and
entertainment provision via the Internet, magazines, and radio and teletext
services, and a switch to alternative leisure habits have meant that
consumers take part in a much wider range of activities than ever before.
With so many competing forces, their attention is more difficult to capture
and their patience with marketing messages is declining.
CONTD…
• It is estimated that consumers are bombarded with up to 3000 communications
and messages every day, and as a result they have become much more discerning
as to which ones they listen to, never mind respond to. This reduction in access to
large groups of potential customers through television has made it much harder
and more expensive for advertisers and their agencies to communicate via mass
messages.
Corporate Approach:
• Despite changes that take place or even overtake us, there are organisations, which
consider promotion as an “extra” cost. Such organisations do believe their product is
unique and they are in a good position to dictate terms.
Marketing-Oriented Approach:
• Simply put, the tools that help marketing team to support sales and generate awareness about
product or brand are known as marketing communication tools. The main purpose of
marketing communication tools is to connect with the target audience effectively, regardless of
the mode of communication.
• While promoting a particular product or service, companies must choose only those
communication tools that best suit their campaign, only then can they generate optimum
sales.
Tools used for Marketing Communication
1. Advertising
• This is one of most prominent and widely used communication tools in a marketing
campaign. It can be in both paid and unpaid forms.
• The main driving force behind this tool is mass media such as television, radio, digital
campaigns, print campaigns, etc.
• Often, advertising makes use of ‘above the line (ATL)’ media campaigns because of the kind
of reach it has. However, companies that are running low on budget or companies that
require more exposure (apart from ATL marketing) use ‘below the line (BTL)’ advertising.
Contd..
a) Above The Line Marketing:
✓ Brands that are after mass appeal often opt for this type of marketing technique, because brands having
mass appeal do not generally have a genuine target market or a particular demographic to aim for.
✓ They will have to aim for a huge and diversified market in general. In such cases, above the line marketing or
mass media/digital marketing can prove to be the ideal techniques to run the marketing campaign.
✓ TV
✓ Radio
✓ Print Media
✓ Cinemas
✓ Outdoor Media (Billboards, Transit Advertising, Commuter Displays, etc.)
Contd..
b) Below The Line Marketing:
✓ Brands that do not have a great mass appeal often opt for this BTL technique. They have genuine target
markets and small audiences to aim for.
✓ In this type of marketing, the advertising agencies that are hired to run the campaign do not take any
commission but do send invoices for the services rendered.
✓ These expenses typically appear below the line on the billing invoice sent to the firm, hence the name BTL
marketing.
• Internet Marketing
• Social Media Marketing
• Email Marketing
• Outdoor Advertisements
• Sales Promotions
• Pamphlets and Brochures
Direct Marketing Tools
• Direct marketing activities bypass any intermediaries and communicate directly with the
individual consumer. Direct mail is personalized to the individual consumer, based on whatever a
company knows about that person’s needs, interests, behaviors, and preferences.
• Traditional direct marketing activities include mail, catalogs, and telemarketing. The thousands of
“junk mail” offers from credit card companies, bankers, and charitable organizations that flood
mailboxes every year are artifacts of direct marketing.
• Telemarketing contacts prospective customers via the telephone to pitch offers and collect
information. Today, direct marketing overlaps heavily with digital marketing, as marketers rely on
email and, increasingly, mobile communications to reach and interact with consumers.
Contd…
• In today’s world, we regard online marketing as direct marketing. Direct mails to get prospects
and lead have more benefits than conventional marketing.
• Done correctly, Direct Marketing is extremely effective in the long run and allows for a targeted
marketing approach to specific consumers to create valuable lasting relationships.
Advantages and Disadvantages of Direct Marketing
• Direct marketing can offer significant value to consumers by tailoring their experience in the
market to things that most align with their needs and interests.
• Additionally, direct marketing can be a powerful tool for anticipating and predicting customer
needs and behaviors.
• Over time, as companies use consumer data to understand their target audiences and market
dynamics, they can develop more effective campaigns and offers.
• Among the leading disadvantages of direct marketing are, not surprisingly, customer concerns
about privacy and information security. Data-driven direct marketing might seem a little creepy or
even nefarious, and certainly it can be when marketers are insensitive or unethical in their use of
consumer data.
• Direct marketing also takes place in a crowded, saturated market in which people are only too
willing to toss junk mail and unsolicited email into trash bins without a second glance.
• Electronic spam filters screen out many email messages, so people may never even see email
messages from many of the organizations that send them.
Personal Selling Marketing Communication Tool
• This is the most dreaded as well as the most expensive of all methods in the marketing
communication process.
• Personal selling is most effective tool adopted by companies and it include setting sales
appointments and meetings, making presentations and any type of one-to-one communication to
reach targeted customers and strengthen company’s relationship with customers
• However, if you are a small business owner or otherwise have the ability to personally sell and
build relationships with customers, it can be one of the most rewarding aspects of the marketing
process, both personally and professionally.
• Just as with traditional marketing, successful selling begins and ends with the customer. The
whole objective is to ascertain needs and create the best solution for customers.
• Along the way you build relationships and continue to gather information about how you can
better serve customers which is your reason for being in business in the first place.
Contd…
• Personal selling also allows companies to get for feedback and make adjustments. This is
Relationship-oriented approach.
• Targeted buyers become more attentive, and Sales force represents a long-term commitment.
This is also most expensive of the promotional mix tools.
• Personal selling is one of the oldest methods of marketing communication. In the old times, when
media like television, radio, and online platforms were not very popular at those times,
companies relied on personal selling for marketing .
• In this method of marketing communication, companies hire expert sellers to go door to door and
sell products to people.
• This method is quite expensive as you are required to the huge commission to your sales persons
for every unit that they sell. In addition to this, this type of marketing communication is quite
slow too as you approach only one potential customer at a time.
Sales Promotion
• Sales promotions are short term strategies for increasing the sales volume.
• According to Kotler, “sales promotions are short term incentives to encourage purchase or sale of
product or services”.
• Sales promotion efforts attempt to attract the attention of customers at the point of sale and
enhance sales volume. Sales promotion tools are used to support the sales personnel and to back
advertisement process.
• Sales promotion may take any or all of the three forms – consumer promotion, trade promotion
and sales force promotion. These forms of sales promotion are also known as tools or methods of
sales promotion.
When undertaking a sales promotion, there are several factors that a business must
consider:
✓What does the promotion cost – will the resulting sales boost justify the
investment?
✓Is the sales promotion consistent with the brand image? A promotion that heavily
discounts a product with a premium price might do some long-term damage to a
brand
✓Will the sales promotion attract customers who will continue to buy the product
once the promotion ends, or will it simply attract those customers who are
always on the look-out for a bargain?
Objectives of sales Promotion
• Sales promotion is a vital bridge or a connecting link between personal selling and
advertising.
✓ To increase sales by publicity through the media which are complementary to press and
poster advertising.
✓ To disseminate information through salesmen, dealers etc., so as to ensure the product
getting into satisfactory use by the ultimate consumers.
✓ To stimulate customers to make purchases at the point of purchase.
✓ To prompt existing customers to buy more.
✓ To introduce new products.
✓ To attract new customers.
✓ To meet competition from others effectively.
✓ To check seasonal decline in the volume of sales.
Methods of sales promotion
✓ Money off coupons – customers receive coupons, or cut coupons out of newspapers or a
products packaging that enables them to buy the product next time at a reduced price
✓ Competitions – buying the product will allow the customer to take part in a chance to win a prize
✓ Discount vouchers – a voucher (like a money off coupon)
✓ Free gifts – a free product when buy another product
✓ Point of sale materials – e.g. posters, display stands – ways of presenting the product in its best
way or show the customer that the product is there.
✓ Loyalty cards – e.g. Nectar and Air Miles; where customers earn points for buying certain goods
or shopping at certain retailers – that can later be exchanged for money, goods or other offers
Loyalty cards have recently become an important form of sales promotion. They encourage the
customer to return to the retailer by giving them discounts based on the spending from a previous
visit. Loyalty cards can offset the discounts they offer by making more sales and persuading the
customer to come back. They also provide information about the shopping habits of customers –
where do they shop, when and what do they buy? This is very valuable marketing research and can
be used in the planning process for new and existing products.
Point of Purchase Material
• Point of purchase or POP displays is an effective tool for persuading customers to
buy something in a store.
• One reason for their effectiveness is retailers place them beside the merchandise
they want to promote, which gives those items more visibility.
• A point of purchase is a marketing term used to describe the area where a retailer
or marketer places promotional or marketing material. It is the area where most
customers will encounter the products, so placing promotional items beside the
items or services can increase the chances of people buying them.
• Point of purchase displays are used to create a visually appealing customer
experience so they may notice specific offers or brands the store is promoting or
marketing.
Types of point of purchase displays
✓ Temporary: These displays can last just a few months since designers make them
with cheap materials. You can use them for seasonal product promotions or
discounts.
✓ Semipermanent: These displays last between three months to a year and feature
higher-quality designs and materials.
✓ Permanent: These displays may last several years and are less common than
temporary and semipermanent displays. Only major brands with popular products
use them.
Benefits of POP displays
➢ Catch the customers' attention -The biggest benefit of point of purchase displays is they
can help catch a customer's attention when they are in the store.
➢ Educate buyers -With point of purchase displays, retailers can better educate shoppers on
the distinct qualities of a particular product or brand.
➢ Target impulse buyers -POP displays can be effective tools for targeting impulse buyers.
When people enter a store, they may not know what they want to buy yet. If they have the
intention of buying something, a conspicuous sign showing the unique value of a specific
brand or product can persuade them to buy it.
➢ Reduce marketing costs -Stores can also reduce marketing costs with an effective point of
purchase marketing strategy. By placing cost-effective paper and digital product displays
around the area customers will encounter offers, stores can target shoppers directly with
product advertisements.
➢ Improve retail merchandising -Brands can also use POP displays to improve how retailers
advertise their products.
➢ Product placement flexibility - Point of purchase displays may offer brands and retailers
more flexibility in product placement, which helps boost visibility.
Tips for creating an effective point of purchase
display
• Use bold images -When designing POP displays, the primary purpose is to grab a customer's
attention using bold images and wording.
• Choose the right location -For the biggest impact, place POP displays in areas with high customer traffic
and that offer easy accessibility to the products being promoted.
• Highlight unique qualities -An effective POP display can show customers the unique qualities of a
product or brand. It should include the key selling points of the product, the colors most popular with the
brand and any other information that may encourage people to buy.
• Be concise -A good POP display should be short and to the point. Keep the messaging clear and include
action words that will entice people to buy and remember your brand next time they are shopping.
• Know your audience - It is important to tailor your message to a specific audience when creating point of
purchase displays. That will allow you to craft a message that appeals to them for increased acceptance,
brand awareness and sales.
• Tell a story - To make your POP display interesting, use it to tell a story unique to your brand or product.
For example, the display can emphasize the founding date of the company, its secret recipe or specific
health benefits.
What Is Merchandise?
• Merchandise is the word used to describe a product that can be bought or sold.
• All products stocked in a supermarket are merchandise that was bought from a
manufacturer, to be sold to a customer.
• Merchandise can be considered as any type of good for sale, for example, clothes
in a clothes shop is merchandise, raw materials from a manufacturer are
merchandise and computers in an electronics store are merchandise.
What Are the Types of Merchandise?
• From a retailer’s point of view, there are four main types of merchandise that can be sold to
customers. These are:
• Convenience Merchandise: This merchandise is anything that a customer cannot live without. Convenience
merchandise or goods can be bought with relative ease anywhere and mainly includes food and hygiene
products.
• Impulse Merchandise: On the other side of convenience merchandise is impulse merchandise which is the
add-on products customers may buy in a supermarket, also known as luxury items. These include sweets,
magazines, and newspapers.
• Household and Electronic Merchandise: This merchandise is a high intent, high price product that needs
more thought and research before buying. Because of this, retailers sell less stock so they must mark up
these products price-wise to make a profit. These items include furniture, smartphones, and electrical
equipment.
• Specialized Merchandise: Specialized merchandise refers to niche products that people buy less often but
spend more money on. These would include holidays or rare cars.
What Is the Difference Between Merchandise and Merchandising?
• Sponsorship refers to the financial or in-kind support of an event, a sports team, a charity
organization, etc, with the objective of attaining certain business objectives
✓ Standing from a business perspective, sponsoring refers to a certain marketing technique whose
purpose is to raise awareness and increase revenues.
✓ A company, in fact, can decide to allocate a specific percentage of its marketing budget in this
area based on the estimated return.
✓ Usually big corporations such as Coca-Cola, McDonald’s and so on, in order to harness economy
of scale, spend millions and millions of dollars every year to sponsor events such as World Cup
and the Olympics.
✓ Their purpose, besides the one, is to engage with customers, drive sales, launch
new products and adapt to industry-related trends (if your competitor is sponsoring global
events, you are forced to follow him).
Advantages
• Brand awareness: it’s one of the basic principles of marketing. Connect to another brand or to an
event and you will gain instant visibility.
• Acquisition: sponsorship allows your company to get in touch with new prospects and start brand
new relationships.
• Customer Loyalty: brands sponsoring sport clubs or big events are perceived as
more authentic and real, thus achieving loyalty.
• Brand reputation: imagine sponsoring a charity event. You can gain the reputation of a
trustworthy and warmhearted company.
• Differentiation: living in a world where competition is more and more stiff, being able to stand out
and differentiate can be hard. Investing in sponsorship, nonetheless, can represent a solution.
Exhibition
• The word “exhibition” was mentioned as early as 1649. It is a derivative of the Latin word
"expositio", meaning "displaying" or "putting on a show"
• An exhibition is an event where goods and services are exhibited and demonstrated to the
public.
• Exhibitions are the places where businesses will launch their new products or try out new
ideas. This will allow you to see how they are received by attendees, and help you decide if
you want to take your business in a similar direction or not.
• Exhibiting at trade shows offers several benefits to your business. Unlike other
marketing activities, exhibitions and trade shows offer a wide platform for brands to
showcase their products, services and communicate their key message to a more
receptive audience.
Contd…
• Exhibitions are usually targeted at business and people concerned about a particular industry and
welcome a diverse range of professionals.
• Participating in an exhibition will enable you to market your brand to a broader crowd and make
them aware of your product and service.
• According to the type of industry, exhibitors can carry out shows and gain business or general
feedback about their offering before they release it to the general public.
• You get a reliable pool of interested customers that you can reach out to after the show.
Importance of exhibition
• Face-to-face interaction :- Networking is the masterstroke when it comes to marketing your business,
and nothing can beat connecting with your audience personally. With just cold calling and emails, you will find that
you are ignored, whereas meeting someone face-to-face makes a huge difference.
• Exhibitions help build brand proximity:- One of the most important benefits of participating
in an exhibition is that it helps in creating brand relevancy. Exhibiting at industry events is an excellent
way to raise your brand value and generate awareness. Understanding the importance of participating
in an exhibition show will enable you to boost your advertising and sponsorship opportunities. With
the help of engaging and appealing exhibition stands, you can make your target audience come to your
stand and engage with your brand. Once they develop a sense of brand familiarity, they will
automatically connect with your brand. This proximity benefits you as well since it helps you
understand your target audience and their needs better.
• Better platform than irksome cold calling :- It usually happens if you are a
businessman or high-ranking professionals that you are working on an important task and you get
startled by a phone call. And if that phone call turns out to be from a salesperson, then not only
have you lost your concentration, but you’ve also lost it for something trivial. Reports say that you
need at least 20 minutes to get back to work once you’ve lost your focus, so disturbances like cold
calling often leave customers to feel annoyed and indifferent to your brand for a long time. Cold
calling also comes across as a pushy marketing strategy that can make you lose your potential
customer too. That is why; exhibitions are not only a better option but rather the best way to grab
your target audience.
• Exhibition visitors are in the right mind frame during the show :-
Unlike cold calling, exhibition visitors are always in the right frame of mind to attend the
show. This is why marketers stress the importance of exhibition shows. In most cases,
during a sales cycle, you need to spend more time initiating contact and qualifying
yourself. But in an exhibition show, these steps are shortened since visitors are already
interested and they are coming to your exhibition stand during the contact phase. So you
get to capture the attention of your audience with your exhibition stand, and your target
audience would be attentive enough to appreciate the exhibition stand designs and
effectively get the message your brand is communicating.
• Exhibitions help you know your Competitors Well :- today’s competitive
marketing world, apart from providing the best services and innovative products, it is essential to
have a fair knowledge of our competitors too. Technology gives you the liberty to check your
competitor’s website and keep a record of their client’s feedback, but exhibitions give you an
opportunity to watch all the market leaders concentrated in one place. It is one of the benefits of
an exhibition that allows you to understand your competitors better by visiting their booth thus
helping you plan your next marketing strategy in a more efficient manner.
Exhibitions differ from fairs in four major
ways:
➢One-time events - First, exhibitions are usually one-time events. They do not enjoy a recurring life
cycle. However, while fairs run for a short period of time, many exhibitions run for months, some
for a year or longer.
➢Permanent - Second, exhibitions are housed in permanent facilities built specifically for them.
Starting in the 18th century, the practice of building a facility for the express purpose of housing
an exhibition was the precursor of the exposition/convention centre industry.
➢Highly organized events - Third, although fairs are held regularly, they are not highly organized
events. Over time, religious and later civic leaders did take control of the grounds where fairs are
held (usually public lands). Exhibitions, on the other hand, are highly organized events. They were
initially created by government departments or committees for the purpose of promoting trade.
➢Stimulation of future sales - Finally, exhibitions differ from fairs in the very way in which business
is conducted. Goods are bought and sold at fairs. At exhibitions, commercial activity or selling the
displayed goods is not usually involved. However, inherent in displaying goods is the hope of
stimulating future sales. Today this is how most exhibitions still operate.
Public Relation
• PR or public relations is nothing but the practice of protecting as well as enhancing the reputation
of any particular organization/firm or for that matter any individual. In today’s world of fierce
competition, where every organization strives hard to work toward its brand image, public
relations has become the need of the hour. It is essential for every organization to communicate
well with its public/target audience. The correct flow of information is essential. Here comes the
importance of public relations.
• Public relations refers to the practice of enhancing an organization’s reputation in the eyes of
public, stakeholders, employees, investors and all others associated with it. Public relations
experts are specially hired by organizationns who work hard towards maintaining brand image of
organization.
Contd..
• Public relation activities ensure the correct flow of information between the organization and its
public also called its target audience.
• Public relations goes a long way in maintaining the brand image of an organization in the eyes of
its audience, stake holders, investors and all others who are associated with it.
• For schools, the target audience would be students and their parents/guardians, for retailers the
target audience would be customers and so on.
Public Relation Activities
• Customer service is the support you offer your customers — both before and after they buy and
use your products or services — that helps them have an easy and enjoyable experience with you.
• Offering amazing customer service is important if you want to retain customers and grow your
business. Today’s customer service goes far beyond the traditional telephone support agent. It’s
available via email, web, text message, and social media.
• Many companies also provide self-service support, so customers can find their own answers at
any time day or night. Customer support is more than just providing answers; it’s an important
part of the promise your brand makes to its customers.
Characteristics of Good Customer Service
• Customer service is the act of taking care of the customer's needs by providing and delivering
professional, helpful, high-quality service and assistance before, during, and after the customer's
requirements are met. Customer service is meeting the needs and desires of any customer. Some
characteristics of good customer service include:
• Promptness: Promises for delivery of products must be on time. Delays and cancellations of
products should be avoided.
• Politeness: Politeness is almost a lost art. Saying 'hello,' 'good afternoon,' 'sir,' and 'thank you very
much' are a part of good customer service. For any business, using good manners is appropriate
whether the customer makes a purchase or not.
• Professionalism: All customers should be treated professionally, which means the use of
competence or skill expected of the professional. Professionalism shows the customer they're
cared for.
• Personalization: Using the customer's name is very effective in producing loyalty. Customers like
the idea that whom they do business with knows them on a personal level.
Visual Corporate Identity
• The aim of a corporate identity is to make a company distinctive and better able to clearly
differentiate itself from competitors. The concept of a corporate identity must be well
planned and strategically implemented.
Elements of corporate Visual identity ..
✓Logo
✓Typeface / Typography
✓Imagery
✓Consistency
✓color
Four elements of corporate identity
1. Logo
• A logo is the most obvious of the graphic elements of corporate identity. As a standout
visual signifier, it should act to identify your company instantly. For example, Apple’s bitten
apple, Google’s colorful wordmark and Twitter’s blue bird all immediately align one visual
element with the organization’s brand’s entire ethos.
2. Typeface
• ‘A picture is worth a thousand words’ the saying goes, but an exploration of typography –
one of the key elements of corporate identity – will tell you that the style, shape, weight
and spacing of the written word can also say an awful lot. Type can be warm and friendly,
elegant and luxurious, or bold and authoritative before you’ve even read the first word.
• The typographic style may be one of the most far-reaching elements of your corporate
identity appearing on emails, presentations, contracts, email signatures, brochures,
stationery, office signage and more.
Contd..
3.Consistency is Key
• The number one thing that makes good visual branding is consistency. This means using the same
logo and fonts across all products and marketing materials, sticking to a color scheme, and even
using similar imagery
4.Color
• Color is one of the most important aspects of visual branding. It is one of the easiest things for
consumers to associate with a brand, and different colors convey different feelings – which can be
handy for creating desired reactions to products. Generally, a company will have 1-3 primary
colors and 2-3 secondary colors. It is also completely acceptable to just have one primary color. It
can be helpful to consider color theory when determining the best colors to use for a company.
McDonald’s is a prime example of a company with one primary and two secondary colors.
Contd..
5.Imagery
• While not necessarily as important as logo, typography, or color when it comes to visual branding,
using consistent imagery is another powerful tool.
• Imagery refers to the pictures and graphics that a company uses in their ads and online presence.
• Choosing the right imagery is a great way to show consumers what the company is all about.
• Imagery can convey the lifestyle that comes along with using a product. It can also help target the
right market for a product, by visually showing consumers that the product is a great fit for their
lifestyle and interests.
Sales Management
• Sales Management refers to the art of achieving the sales targets within the stipulated time frame
through effective budgeting and meticulous planning. Sales management enables the sales
representatives to close sales deals in favour of the organization and eventually earn revenues for
the same.
•
Communication plays an important role in sales management. Sales professionals need to be
good communicators for the desired impact. In simpler words, communication is the backbone of
sales management. It is absolutely not possible to close a sales deal without effective
communication.
•
Packaging
• The wrapping material around a consumer item that serves to contain, identify, describe,
protect, display, promote and otherwise make the product marketable and keep it clean.
• The primary purpose of packaging is to protect its contents from any damage that could
happen during transport, handling and storage. Packaging retains the product intact
throughout its logistics chain from manufacturer to the end user. It protects the product
from humidity, light, heat and other external factor.
• “Packing is the activity of putting your possessions into bags, cases, or boxes so that you
can take or send them somewhere.” – MacMillan Dictionary
Sales Promotion Personal Selling Advertisement Public Relations
Programs Sales meetings Print media Speech
Game, Contest, Lotteries, Sales Presentations Electronic media, Motion pictures Press Release, Seminars
Coupons etc
Gifts, Sampling Incentive programs Brochures, Booklets, Magazines, etc. Charitable donations,
Lobbying
Exhibition, Trade shows, Exhibition, Trade shows, Billboards, Displays, etc. Sponsorships
Offers Offers
Low interest financing Brochure, mailing, etc. Logos, Symbols,etc. Publications, Company
magazine, etc.