Antim Prahar

The MOST Important

Questions
By
Dr. Anand Vyas
1 Introduction and Application of Consumer
Behavior knowledge in Marketing
• Introduction to Consumer Behavior:
• Understanding Consumers: Consumer behavior is all about figuring out
why people buy things and how they make decisions about what to buy.
• What Influences Decisions: It looks at the different factors that affect a
person's choices, like their preferences, needs, wants, and the environment
around them.
• Psychology and Sociology: It's like a mix of psychology (how people think)
and sociology (how society influences individuals).
• Why It Matters: This knowledge helps businesses create products and
marketing strategies that appeal to their target customers.
• Application of Consumer Behavior Knowledge in Marketing:
• Product Design: Understanding what consumers want helps
companies design products that meet their needs and preferences.
For example, making smartphones with better cameras because
people love taking photos.
• Marketing Messages: Knowing what influences people's decisions
helps in creating effective advertising and marketing campaigns. For
instance, using emotional appeals or highlighting product benefits.
• Pricing Strategies: Consumer behavior helps in setting prices that
customers are willing to pay. Companies might use tactics like
discounts or bundling to attract buyers.
• Distribution Channels: Knowing where and how consumers like to
shop helps in deciding how to distribute products. For example,
offering online shopping options for people who prefer shopping from
home.
• Brand Loyalty: Understanding what keeps customers coming back
helps in building brand loyalty. This might involve offering rewards
programs or excellent customer service.
• Market Research: Studying consumer behavior helps in conducting
market research to identify trends, preferences, and potential new
markets.
• Competitive Advantage: Utilizing consumer behavior insights gives
businesses an edge over competitors by better understanding and
meeting customer needs.
2 Consumer Decision Making Process
• Recognition of Need: It all starts when a consumer realizes they have
a problem or need. This could be anything from feeling hungry to
needing a new phone.
• Information Search: Once they recognize the need, consumers start
looking for information about how to solve it. They might ask friends,
search online, or visit stores to gather information about different
options.
• Evaluation of Alternatives: With the information gathered,
consumers compare different products or services to see which one
best meets their needs. They'll consider things like price, quality,
brand reputation, and features.
• Purchase Decision: After evaluating the options, the consumer
decides which product or service to buy. This is where they make the
actual purchase.
• Post-Purchase Evaluation: Once the purchase is made, consumers
assess whether they're satisfied with their decision. They might think
about whether the product met their expectations, if they got a good
deal, and if they would buy from the same brand again.
3 Behavioral Learning Theories
• Classical Conditioning:
• What it is: This theory says that we learn by associating things together. If
something happens just before something else, we start to expect the second
thing when we see the first.
• Example: When you smell your favorite food cooking, you start to feel hungry
because your brain has learned to link that smell with eating.
• In Simple Terms: It's like your brain making connections between two things
because they happen together.
• Operant Conditioning:
• What it is: This theory is about how we learn based on rewards and
punishments. If something good happens after we do something, we're more
likely to do it again. If something bad happens, we're less likely to do it again.
• Example: If you get praised for doing your chores, you'll probably keep doing
them. But if you get in trouble for not doing them, you might start doing them
to avoid getting into trouble again.
• In Simple Terms: It's like learning from the consequences of our actions -
good things make us repeat behaviors, and bad things make us stop.
• Social Learning Theory:
• What it is: This theory is about learning by watching others. We pick up
behaviors, attitudes, and values by observing people around us, especially
those we admire or respect.
• Example: You might start saying "please" and "thank you" more often
because you see your parents or friends doing it.
• In Simple Terms: It's like copying what we see others do because we think it's
the right or cool thing to do.
4 Cognitive Learning theories to Consumer
Behavior and Consumer Perception
• Cognitive learning theories focus on how people process information,
think, and understand concepts. Here's a simple explanation of how
cognitive learning theories apply to consumer behavior:
• Information Processing Theory:
• What it is: This theory compares the human mind to a computer, suggesting
that we process information through a series of steps, including attention,
encoding, storage, and retrieval.
• Application to Consumer Behavior: Marketers use this theory to understand
how consumers pay attention to marketing messages, encode product
information, store brand knowledge in memory, and retrieve it when making
purchasing decisions. For instance, they design advertisements to capture
consumers' attention, convey product benefits clearly for better encoding,
and create memorable brand experiences for easier retrieval during decision-
making.
• Schema Theory:
• What it is: Schema theory proposes that individuals
organize information into mental frameworks or schemas,
which help them interpret new information and make
sense of the world.
• Application to Consumer Behavior: Consumers use
schemas to categorize products, brands, and shopping
experiences. Marketers can influence consumer schemas
by shaping brand perceptions through consistent
messaging, branding, and product positioning. For
example, luxury brands create schemas associated with
prestige and exclusivity to attract high-end consumers.
• Social Cognitive Theory:
• What it is: Social cognitive theory emphasizes the role of observation,
imitation, and social interaction in learning. It suggests that individuals learn
by observing others and the consequences of their actions.
• Application to Consumer Behavior: Consumers learn about products, brands,
and consumption behaviors through observation of others (e.g., family, peers,
celebrities) and their experiences. Marketers leverage social cognitive theory
by using influencers, testimonials, and social proof to shape consumer
attitudes and behaviors. For instance, influencer marketing campaigns
showcase products being used or endorsed by relatable figures to influence
consumer preferences and purchase decisions.
• Consumer perception refers to how individuals interpret and make
sense of information from their environment, particularly concerning
products, brands, and marketing messages. Here's a simple
breakdown:
• What it is:
• Consumer perception is the way people see and understand the world
around them, including the products they buy, the brands they encounter,
and the marketing they are exposed to.
• Factors influencing perception:
• Sensory inputs: Consumers perceive information through their senses,
including sight, hearing, taste, smell, and touch. For example, the
appearance, color, or packaging of a product can influence how
consumers perceive its quality.
• Past experiences: Previous experiences with products, brands, or
similar situations shape consumers' perceptions. Positive experiences
may lead to favorable perceptions, while negative experiences can
result in distrust or avoidance.
• Cultural and social influences: Cultural norms, values, and social
influences within a consumer's social group can impact their
perceptions. For example, certain products may be associated with
status or social approval within a specific cultural context.
• Personal beliefs and attitudes: Consumers' individual beliefs, attitudes,
and values influence how they perceive products and brands. For
instance, environmentally conscious consumers may prefer products
marketed as eco-friendly.
• Marketing and media messages: Advertising, branding, and other
marketing efforts shape consumers' perceptions by influencing how
products are portrayed and positioned in the marketplace.
5 Consumer Attitude formation and Change
• Consumer attitude formation and change refer to the processes through
which individuals develop opinions and feelings (attitudes) about products,
brands, or other objects, as well as how these attitudes can be altered over
time. Here's a simplified explanation:
• Formation of Consumer Attitudes:
• Direct Experience: Individuals often form attitudes based on their direct
experiences with products or brands. Positive experiences may lead to
favorable attitudes, while negative experiences can result in negative
attitudes.
• Social Influences: Attitudes can be influenced by the opinions and
behaviors of others, including friends, family, peers, and influencers.
Individuals may adopt attitudes consistent with those around them to fit in
or gain social approval.
• Marketing and Advertising: Marketers use various strategies to shape
consumer attitudes through advertising, branding, product
positioning, and other promotional efforts. Positive messaging,
endorsements, and appealing imagery can influence consumers'
perceptions and attitudes toward a product or brand.
• Cognitive Dissonance: When individuals experience conflicting beliefs
or attitudes, they may seek to resolve this discomfort by adjusting
their attitudes. For example, if someone purchases an expensive item
but later doubts its value, they may change their attitude to justify
their decision.
• Change of Consumer Attitudes:
• Persuasion: Marketers often use persuasive techniques to change
consumer attitudes through advertising, sales promotions, and other
marketing communications. This may involve appealing to emotions,
providing factual information, or using social proof to influence
attitudes.
• Experiential Learning: New experiences or exposure to different
information can lead to changes in attitudes. For example, trying a
new product or learning about its benefits may alter consumers'
attitudes positively.
• Cognitive Restructuring: Individuals may change their attitudes by
reevaluating their beliefs or reassessing the information they have.
This could involve updating outdated perceptions or reconsidering
the importance of certain attributes.
• Social Influence: Peer pressure, social norms, and cultural shifts can
influence changes in consumer attitudes. For instance, societal trends
or movements may lead to shifts in attitudes toward environmental
sustainability or ethical consumption.
• Repetition and Consistency: Consistent exposure to messages or
experiences can reinforce or change consumer attitudes over time.
Repetition of positive messages or consistent brand experiences can
strengthen favorable attitudes, while negative experiences may
weaken existing attitudes.
6 Reference Group (Friends, Family Society)
Types and importance in buying behavior
• Reference groups are social groups that influence an individual's attitudes,
beliefs, values, and behaviors. These groups serve as points of comparison
and sources of information for individuals in their decision-making
processes, including buying behavior. Here's a simple explanation of the
types of reference groups and their importance:
• Types of Reference Groups:
• Primary Reference Groups:
• Definition: These are close-knit groups with whom individuals have frequent and
direct interactions. They often include family members, close friends, and peers.
• Importance: Primary reference groups play a significant role in shaping individuals'
attitudes, values, and behaviors. People are more likely to seek approval and
conform to the norms of these groups, making them influential in purchasing
decisions.
• Secondary Reference Groups:
• Definition: These are larger, less intimate groups that individuals may not interact
with as frequently as primary groups. They can include social clubs, professional
associations, online communities, or religious groups.
• Importance: While less influential than primary groups, secondary reference groups
still impact individuals' perceptions and behaviors. Membership in these groups can
provide individuals with identity and affiliation, influencing their consumption
choices and brand preferences.
• Aspirational Reference Groups:
• Definition: These are groups to which individuals aspire to belong but may not
currently be a part of. They often represent desired social identities or lifestyles.
• Importance: Aspirational reference groups serve as sources of inspiration and
motivation for individuals, guiding their consumption aspirations and purchase
decisions. Marketers often target these groups in advertising to associate their
products with desired social statuses or lifestyles.
• Dissociative Reference Groups:
• Definition: These are groups with whom individuals do not want to be associated
due to conflicting values, norms, or identities.
• Importance: Dissociative reference groups influence individuals by providing
negative reference points. Consumers may avoid products or brands associated with
these groups to maintain their desired social identity or avoid social disapproval.
• Importance of Reference Groups in Buying Behavior:
• Social Influence: Reference groups serve as social benchmarks for
individuals, influencing their attitudes, preferences, and purchasing
decisions. People often look to reference groups for guidance on what
products to buy, brands to choose, and behaviors to adopt.
• Normative Influence: Individuals conform to the norms and expectations
of their reference groups to gain acceptance, approval, and social
validation. The desire to fit in and adhere to group norms drives consumer
behavior and brand choices.
• Informational Influence: Reference groups provide valuable information
and opinions that individuals use to evaluate products, make comparisons,
and reduce uncertainty in decision-making. Recommendations and
testimonials from reference group members can significantly impact
purchasing decisions.
• Identity Formation: Membership in reference groups shapes individuals'
identities and self-concepts, influencing their consumption patterns and
brand preferences. Consumers often choose products and brands that
reflect their desired social identity and group affiliations.
7 Objective of Marketing Communication and Developing Effective
marketing Communication and address the emerging issues in marketing
communication
• Objective of Marketing Communication:
• Creating Awareness: One of the primary goals of marketing communication is to make
consumers aware of a product, brand, or service. This involves introducing the offering to
the target audience and highlighting its features and benefits.
• Generating Interest: Marketing communication aims to capture the attention and
interest of consumers by communicating the value proposition of the product or service.
This involves demonstrating how the offering can fulfill consumers' needs or solve their
problems.
• Building Desire: Effective marketing communication strives to create desire or aspiration
for the product or brand among consumers. This is achieved by showcasing the unique
selling points, advantages, and positive associations of the offering.
• Facilitating Action: Ultimately, the goal of marketing communication is to drive action or
behavior among consumers, such as making a purchase, signing up for a service, or
engaging with the brand. This involves providing clear calls-to-action and making it easy
for consumers to take the desired steps.
• Developing Effective Marketing Communication:
• Understanding the Target Audience: Effective marketing communication starts with a
deep understanding of the target audience, including their needs, preferences,
behaviors, and communication channels. This enables marketers to tailor their messages
to resonate with the audience and address their specific interests and concerns.
• Crafting Compelling Messages: Messages should be clear, concise, and compelling to
capture consumers' attention and communicate the value proposition effectively.
Marketers should focus on highlighting the key benefits and unique selling points of the
offering in a way that resonates with the target audience.
• Choosing the Right Channels: Selecting the appropriate communication channels is
essential for reaching the target audience effectively. This may include a mix of
traditional channels (e.g., TV, radio, print) and digital channels (e.g., social media, email,
websites) based on where the target audience is most active and receptive.
• Consistency and Integration: Marketing communication efforts should be consistent
across all channels and touchpoints to reinforce the brand message and build brand
recognition. Integration ensures that messages are coherent and aligned with the overall
marketing strategy, enhancing brand credibility and trustworthiness.
• Measuring and Evaluating Performance: Marketers should regularly monitor and
evaluate the performance of marketing communication activities to assess their
effectiveness and identify areas for improvement. This involves tracking key metrics such
as reach, engagement, conversion rates, and return on investment (ROI).
• Addressing Emerging Issues in Marketing Communication:
• Privacy Concerns: With increasing data collection and personalization in
marketing, there are growing concerns about consumer privacy and data
protection. Marketers need to be transparent about data usage and adhere to
privacy regulations to build trust with consumers.
• Digital Transformation: The rise of digital technologies and platforms has
transformed the marketing landscape, presenting both opportunities and
challenges. Marketers need to adapt to new digital channels and formats while
ensuring consistency and integration across online and offline channels.
• Content Overload: Consumers are bombarded with a vast amount of content and
messages across various channels, leading to content overload and attention
fragmentation. Marketers need to cut through the clutter by delivering relevant,
valuable, and engaging content that resonates with their target audience.
• Authenticity and Transparency: In an age of social media and user-generated
content, authenticity and transparency are increasingly important in marketing
communication. Brands need to be genuine, honest, and transparent in their
messaging and interactions to build credibility and trust with consumers.
• Cultural Sensitivity and Diversity: With globalization and multiculturalism,
marketers need to be sensitive to cultural differences and diversity in their target
audiences. Messages should be inclusive, respectful, and culturally relevant to
connect with diverse consumer segments effectively.
8 Classification and Process of Advertising
• Classification of Advertising:
• Based on Purpose:
• Informative Advertising: Provides information about a product, service, or brand to
educate consumers and create awareness.
• Persuasive Advertising: Aims to persuade or convince consumers to buy a product or
service by highlighting its benefits and advantages.
• Reminder Advertising: Reinforces the brand or product message to remind
consumers about its existence or benefits, especially for established brands.
• Based on Target Audience:
• Consumer Advertising: Targets individual consumers to promote products or
services for personal use.
• Business-to-Business (B2B) Advertising: Targets businesses or organizations to
promote products or services intended for use in business operations.
• Based on Media Channel:
• Print Advertising: Includes advertisements published in newspapers,
magazines, brochures, and other printed materials.
• Broadcast Advertising: Includes advertisements aired on television or radio.
• Digital Advertising: Includes advertisements displayed on websites, social
media platforms, search engines, and mobile apps.
• Outdoor Advertising: Includes advertisements displayed in public spaces such
as billboards, transit ads, and posters.
• Based on Reach and Frequency:
• Mass Advertising: Targets a wide audience with broad reach and high
frequency, often using mass media channels like television or radio.
• Niche Advertising: Targets a specific segment of the market with specialized
interests or needs, often using targeted media channels like online forums or
industry publications.
• Process of Advertising:
• Setting Objectives: The advertising process begins with defining clear
objectives, such as increasing brand awareness, driving sales, or
changing consumer perceptions.
• Understanding the Target Audience: Marketers conduct research to
understand the needs, preferences, behaviors, and demographics of
the target audience.
• Message Development: Based on the objectives and target audience
insights, marketers create compelling and persuasive messages that
resonate with consumers and communicate the value proposition of
the product or brand.
• Media Planning: Marketers select the most appropriate media
channels and platforms to reach the target audience effectively,
considering factors such as reach, frequency, cost, and audience
demographics.
• Creative Execution: The advertising message is brought to life through
creative execution, including design, visuals, copywriting, and storytelling,
to capture consumers' attention and engage their emotions.
• Media Buying: Marketers negotiate and purchase advertising space or
airtime from media outlets or platforms to ensure the ads are displayed or
broadcasted to the target audience according to the media plan.
• Implementation and Launch: The advertising campaign is launched and
implemented according to the planned schedule and budget, ensuring that
the ads are delivered to the intended audience at the right time and place.
• Monitoring and Evaluation: Marketers monitor the performance of the
advertising campaign by tracking key metrics such as reach, impressions,
clicks, conversions, and return on investment (ROI). They evaluate the
effectiveness of the campaign against the objectives and make adjustments
as needed.
• Optimization and Continuous Improvement: Based on the monitoring and
evaluation results, marketers optimize the advertising campaign by refining
the messaging, targeting, creative elements, or media channels to improve
performance and achieve better results over time.
9 Advertising Effectiveness & its measurement
• Advertising effectiveness refers to the extent to which an advertising campaign
achieves its objectives and contributes to the overall goals of the business. It
assesses how well the advertising message resonates with the target audience,
influences their attitudes and behaviors, and ultimately drives desired outcomes,
such as brand awareness, sales, or customer engagement.
• Measurement of Advertising Effectiveness:
• Brand Awareness: One of the primary objectives of advertising is to increase
brand awareness among the target audience. Brand awareness can be measured
through metrics such as aided recall (the ability of consumers to remember the
brand when prompted) and unaided recall (spontaneous brand awareness
without prompting).
• Message Recall: Advertising effectiveness can be assessed by measuring the
extent to which consumers recall the advertising message or specific elements of
the ad, such as the tagline, visuals, or key benefits. This can be done through
surveys, interviews, or recall tests.
• Brand Perception: Surveys and focus groups can be used to measure changes in
consumer perceptions of the brand, such as attitudes, associations, and
perceptions of quality, value, or trustworthiness, before and after exposure to the
advertising campaign.
• Purchase Intent: Advertising effectiveness can be evaluated by measuring
changes in consumer purchase intent or likelihood to buy the product or service
after exposure to the advertising message. This can be assessed through surveys,
purchase intent scales, or behavioral indicators such as website visits or store
visits.
• Sales and Revenue: Ultimately, the impact of advertising on sales and revenue is
a critical measure of effectiveness. Marketers can track changes in sales metrics,
such as volume, revenue, market share, or return on investment (ROI), to assess
the direct impact of the advertising campaign on business outcomes.
• Engagement and Interaction: In the digital age, advertising effectiveness can also
be measured through consumer engagement and interaction with the ad, such as
clicks, likes, shares, comments, or conversions. Digital analytics tools can track
these metrics to gauge the effectiveness of online advertising campaigns.
• Customer Feedback: Gathering feedback from customers through surveys,
reviews, or social media comments can provide valuable insights into the
perceived effectiveness of advertising campaigns and areas for improvement.
Customer feedback helps marketers understand how well the advertising
message resonates with the target audience and whether it meets their needs
and expectations.
10 Legal and Ethical Concept and Issues in
Advertising
• Legal Concepts in Advertising:
• Truth in Advertising: Advertisers must ensure that their advertising
claims are accurate and truthful. Misleading or deceptive advertising
practices, such as false claims or exaggerated statements about a
product's benefits, are prohibited by law.
• Regulatory Compliance: Advertisers must comply with various laws
and regulations governing advertising practices, including consumer
protection laws, competition laws, and industry-specific regulations.
For example, in the United States, the Federal Trade Commission
(FTC) enforces laws related to deceptive advertising and unfair
business practices.
• Intellectual Property Rights: Advertisers must respect intellectual
property rights, including trademarks, copyrights, and patents.
Unauthorized use of trademarks or copyrighted materials in
advertisements can lead to legal consequences, such as lawsuits for
infringement.
• Endorsement and Testimonial Disclosure: Advertisers must disclose
any material connections between endorsers or testimonials and the
advertised product or brand. This includes disclosing paid
endorsements or relationships with influencers, celebrities, or experts
who endorse the product.
• Ethical Issues in Advertising:
• Honesty and Transparency: Advertisers have an ethical obligation to be honest,
transparent, and truthful in their advertising messages. Deceptive or misleading
advertising practices undermine consumer trust and damage brand reputation.
• Respect for Consumer Autonomy: Advertisers should respect consumers'
autonomy and right to make informed choices. Manipulative or coercive
advertising tactics that exploit consumers' vulnerabilities or manipulate their
emotions are considered unethical.
• Social Responsibility: Advertisers have a responsibility to consider the potential
social impact of their advertising messages. Advertisements should not promote
harmful behaviors or perpetuate negative stereotypes, and they should
contribute to the overall well-being of society.
• Privacy Concerns: Advertisers must respect consumers' privacy rights and adhere
to laws and regulations governing data privacy and protection. Collecting and
using consumer data for targeted advertising should be done transparently and
with consumers' consent.
• Sensitivity to Cultural and Diversity Issues: Advertisers should be sensitive to
cultural differences, diversity, and inclusion in their advertising messages.
Stereotypical or offensive representations of race, gender, ethnicity, religion, or
other characteristics are unethical and can lead to backlash from consumers.
• Emerging Issues in Advertising Ethics:
• Digital Advertising Practices: With the rise of digital advertising,
ethical issues related to online tracking, targeting, and data privacy
have become more prominent. Advertisers must navigate the ethical
implications of using consumer data for personalized advertising
while respecting privacy rights.
• Influencer Marketing Ethics: The use of influencers in advertising
raises ethical concerns about transparency, authenticity, and
disclosure of paid endorsements. Advertisers and influencers must
ensure clear disclosure of material connections to maintain
transparency and trust with consumers.
• Social Media Responsibility: Advertisers must consider the ethical
implications of their advertising content on social media platforms,
including issues related to misinformation, hate speech, and harmful
content. Responsible advertising practices on social media contribute
to a safe and positive online environment
11 Steps Involved in Media Planning
• Media planning involves determining the most effective and efficient ways to reach a
target audience with advertising messages. Here are the steps involved in media
planning:
• Defining Objectives: The first step in media planning is to establish clear advertising
objectives. These objectives should align with the overall marketing goals and may
include increasing brand awareness, driving sales, or promoting a new product launch.
• Identifying Target Audience: Media planners need to identify the target audience for the
advertising campaign. This involves understanding the demographics, psychographics,
behaviors, and preferences of the target audience to determine the most effective media
channels and messaging strategies.
• Setting Budget: Media planners must determine the advertising budget available for the
campaign. The budget will influence decisions regarding media selection, frequency, and
reach.
• Conducting Media Research: Media planners conduct research to gather information
about different media options, including television, radio, print, digital, outdoor, and
social media. This research may include audience demographics, reach, frequency, cost,
and effectiveness of each media channel.
• Developing Media Objectives: Based on the advertising objectives and
target audience insights, media planners set specific media objectives.
These objectives may include reaching a certain percentage of the target
audience, maximizing brand exposure, or achieving a certain level of
frequency.
• Media Strategy Development: Media planners develop a media strategy
that outlines the overall approach to reaching the target audience. This
includes selecting the most appropriate media channels, determining the
media mix, allocating the budget across different media, and scheduling ad
placements.
• Media Selection: Media planners choose the specific media vehicles or
outlets within each chosen media channel. This involves evaluating factors
such as audience demographics, reach, cost, and timing to select the media
options that best align with the campaign objectives and target audience.
• Media Buying: Once the media plan is finalized, media planners negotiate
and purchase advertising space or airtime from media vendors. This may
involve securing ad placements, negotiating rates, and ensuring that the
ads are scheduled to reach the target audience effectively.
• Implementation and Execution: Media planners oversee the
implementation and execution of the media plan, ensuring that ads
are delivered according to the agreed-upon schedule and
specifications. This involves coordinating with media vendors,
tracking ad placements, and monitoring performance.
• Monitoring and Optimization: Throughout the campaign, media
planners monitor the performance of the advertising placements and
make adjustments as needed to optimize effectiveness. This may
involve tracking key metrics such as reach, frequency, impressions,
clicks, conversions, and return on investment (ROI).
• Evaluation and Reporting: After the campaign ends, media planners
evaluate the overall effectiveness of the media plan against the
original objectives. This involves analyzing performance data,
assessing the impact on brand awareness and sales, and preparing
reports to share insights and recommendations for future campaigns.
12 Buzz, viral and mobile Marketing
• Buzz Marketing:
• What it is: Buzz marketing, also known as word-of-mouth marketing, involves
creating excitement and anticipation around a product, brand, or event through
organic conversations and interactions among consumers.
• How it works: Instead of relying on traditional advertising methods, buzz
marketing focuses on generating positive word-of-mouth and creating a "buzz"
around the offering. This can be achieved through various tactics such as
influencer endorsements, experiential marketing events, or creating remarkable
and shareable content.
• Example: A company might create a mysterious teaser campaign for an upcoming
product launch, sparking curiosity and discussion among consumers. As people
share their excitement on social media or discuss the teaser with friends, the
buzz around the product grows, generating anticipation and interest.
• Viral Marketing:
• What it is: Viral marketing aims to spread a marketing message or
piece of content rapidly among a large audience through social
sharing and word-of-mouth, often leveraging the power of online
platforms and social networks.
• How it works: Viral marketing campaigns typically involve creating
engaging, entertaining, or emotionally resonant content that
encourages people to share it with others. This can include videos,
memes, interactive experiences, or challenges that capture attention
and prompt viral sharing.
• Example: A company may create a humorous or heartwarming video
that resonates with its target audience and encourages viewers to
share it with their friends and followers. As the video spreads across
social media channels, it reaches a wider audience and generates
exposure for the brand or product.
• Mobile Marketing:
• What it is: Mobile marketing involves reaching and engaging
consumers through their mobile devices, such as smartphones and
tablets, leveraging mobile apps, websites, SMS messaging, and other
mobile channels.
• How it works: Mobile marketing strategies are designed to connect
with consumers on-the-go, delivering relevant and personalized
messages based on their location, interests, and behaviors. This can
include mobile advertising, app-based marketing, mobile-optimized
websites, and location-based targeting.
• Example: A retailer may send personalized mobile notifications to
customers who are near one of their stores, offering a special
discount or promotion to incentivize them to visit and make a
purchase. This targeted approach leverages mobile technology to
reach consumers at the right time and place.
13 Interactive Marketing: Its Advantage and Disadvantages
• Interactive marketing is a strategy that involves engaging with consumers directly and encouraging them to
participate in the marketing process. Here are the advantages and disadvantages of interactive marketing:
• Advantages:
• Enhanced Engagement: Interactive marketing allows brands to create more engaging and immersive
experiences for consumers, increasing their involvement and interaction with the brand. This can lead to
higher levels of attention, interest, and brand recall.
• Personalization: Interactive marketing enables brands to tailor messages and experiences to individual
preferences and behaviors, providing personalized recommendations, offers, and content. This enhances
relevance and improves the likelihood of conversion.
• Real-time Feedback: Interactive marketing allows brands to gather real-time feedback from consumers,
enabling them to understand preferences, address concerns, and make timely adjustments to marketing
campaigns and offerings. This facilitates continuous improvement and optimization.
• Building Relationships: By facilitating two-way communication and interaction, interactive marketing helps
brands build stronger relationships with consumers. It fosters dialogue, trust, and loyalty, leading to long-
term customer relationships and advocacy.
• Data Collection and Insights: Interactive marketing generates valuable data and insights about consumer
behavior, preferences, and engagement patterns. This data can be used to refine targeting, personalize
messaging, and optimize marketing strategies for better results.
• Disadvantages:
• Complexity: Implementing interactive marketing campaigns can be more complex and
resource-intensive than traditional marketing methods. It requires expertise in digital
technologies, data analytics, and user experience design, which may pose challenges for
some organizations.
• Technical Requirements: Interactive marketing relies on various digital platforms and
technologies, such as websites, mobile apps, social media, and interactive tools.
Managing and integrating these technologies effectively may require investment in
infrastructure and specialized skills.
• Privacy Concerns: Collecting and using consumer data for interactive marketing purposes
raises privacy concerns and regulatory compliance issues. Brands must ensure
transparent data practices, obtain consent from users, and comply with data protection
regulations to maintain trust and avoid legal risks.
• Resistance from Consumers: Some consumers may be resistant to interactive marketing
efforts, particularly if they perceive them as intrusive, manipulative, or irrelevant. Brands
need to strike the right balance between engagement and respecting consumers'
boundaries to avoid alienating or annoying their target audience.
• Measurement Challenges: Measuring the effectiveness and ROI of interactive marketing
campaigns can be challenging due to the complexity of tracking user interactions across
multiple channels and touchpoints. Brands need robust analytics tools and
methodologies to accurately evaluate performance and justify investment.
14 Developing the Advertising Campaign and
method for preparing advertisement budget
• Developing an advertising campaign involves a strategic and systematic approach
to planning, executing, and evaluating advertising efforts to achieve specific
marketing objectives. Here's a simplified overview of the steps involved in
developing an advertising campaign, followed by methods for preparing the
advertisement budget:
• Developing the Advertising Campaign:
• Define Objectives: Start by clearly defining the advertising objectives, such as
increasing brand awareness, driving sales, or promoting a new product launch.
Objectives should be specific, measurable, achievable, relevant, and time-bound
(SMART).
• Understand the Target Audience: Conduct research to understand the
demographics, psychographics, behaviors, and preferences of the target
audience. This will inform decisions regarding messaging, creative elements, and
media selection.
• Craft Key Messages: Develop compelling and persuasive messages that
resonate with the target audience and communicate the value proposition
of the product or brand. Messages should be aligned with the advertising
objectives and tailored to address consumer needs and motivations.
• Choose Media Channels: Select the most appropriate media channels and
platforms to reach the target audience effectively. Consider factors such as
reach, frequency, cost, and audience demographics when choosing media
options, including traditional channels (e.g., TV, radio, print) and digital
channels (e.g., social media, online display, search engine marketing).
• Develop Creative Elements: Create visually appealing and engaging
creative elements, including ad copy, visuals, graphics, and multimedia
content. Ensure that creative elements are aligned with the key messages
and resonate with the target audience.
• Plan Media Schedule: Determine the timing and frequency of ad
placements across selected media channels. Develop a media schedule
that optimizes reach and frequency while staying within budget
constraints.
• Allocate Budget: Allocate the advertising budget across different
media channels and tactics based on their expected effectiveness and
contribution to the overall objectives. Consider factors such as media
costs, audience reach, and expected return on investment (ROI).
• Implement Campaign: Execute the advertising campaign according to
the planned schedule and budget. Monitor and manage campaign
execution to ensure that ads are delivered as intended and
performance is tracked effectively.
• Measure and Evaluate: Monitor the performance of the advertising
campaign and evaluate its effectiveness against the predefined
objectives. Track key metrics such as reach, impressions, clicks,
conversions, and ROI. Use insights from performance data to optimize
campaign strategies and inform future decisions.
• Preparing the Advertisement Budget:
• There are several methods for preparing the advertisement budget,
including:
• Percentage of Sales: Allocate a percentage of total sales revenue or
projected sales revenue to the advertising budget. This method is
based on the assumption that advertising investment should be
proportional to sales volume.
• Objective and Task: Determine specific advertising objectives and the
tasks required to achieve them. Estimate the costs associated with
each task and allocate budget accordingly. This method focuses on
aligning the budget with advertising goals and activities.
• Competitive Parity: Set the advertising budget based on competitors'
spending levels or industry benchmarks. This method ensures that
the brand remains competitive in terms of advertising investment
relative to competitors.
• Affordability: Allocate the advertising budget based on what the
company can afford, considering factors such as available financial
resources, cash flow, and other business priorities. This method may
be used by smaller businesses with limited budgets.
• Incremental Budgeting: Incrementally adjust the advertising budget
based on past performance, market conditions, and changes in
business objectives. This method allows for flexibility in budget
allocation and adaptation to evolving needs.