Communication: Communication is the transmission of a message from a sender to a receiver via a medium (or channel) of transmission.

BASIC COMMUNICATION MODEL

Sender

Message

Channel

Receiver

SENDER Formal Communication source Informal Communication source Word-of-mouth communications tend to be high persuasive. RECEIVER Intermediary Wholesalers, retailers Unintended audiences Shareholders, creditors, suppliers, employees, bankers, local community

MEDIUM (Communication Channel) Impersonal Mass medium like print media, broadcast and electronic Interpersonal Face-to-face, by telephone, by mail, or online Interactive Communication Websites MESSAGE Verbal Spoken or written Nonverbal Photograph, illustration, symbol Companies develops logos or symbols to communicate.

FEEDBACK Prompt feedback permits the sender to modify the message to ensure that it is understood in the intended way. Facial expressions (a smile, a frown, boredom, disbelief) Body movements ( finger tapping, head nodding, head shaking, clenched hands)

PURPOSE OF COMMUNICATION To elicit the desired response from the target audience.

PROMOTION MIX Modern methods of communication Team headed by a national account manager is made responsible for understanding and serving the needs of big splendors.

Demonstration centers specially designed showrooms that allow customers to observe and try out. Industrial stores seminars and demonstrations in hotels, trade shows. Telemarketing to solicit orders, to listen customer grievances, to solve customer problems.

PROMOTION MIX Sponsorships Sponsorships is a business relationship between a provider of funds, resources or services and an individual, event or organization which offers in return some rights and associations that may be used for commerical advantage.
Objectives of sponsorship Gaining publicity: events such as golf, football Fostering favorable brand and company associations: huge amount of prestige associated with sponsoring such big events Improving community relations: Creating promotional expenditure: Bags, pens etc carrying the company logo and the name of the event can be sold to a confined audience. getting higher

Expenditure on sponsorship is increasing due to: Restrictive government policies in some products. Increasing costs of media advertising Increased leisure activities and sporting events. Greater media coverage of sponsored events. Even sponsored by one company but coverage of the event may be sponsored by some other company.

Selection of an event to sponsor should be undertaken by answering a series of questions:

What the company wants to achieve from the sponsorship deal. Personality of the event should match the desired brand image. Target market Risk: What are the chances that the event might attract adverse publicity?

PROMOTION MIX Exhibitions Exhibition is the promotional tool that brings buyers, seller and the competitors in a commercial setting.

Objectives of Exhibitions An opportunity to reach an audience with a distinct interest in the market and the products on display. Creates awareness and develops relationship with new prospects. Provides product demonstrations Determines and stimulates needs of customers Gathers competitive intelligence Introduce a new product Recruit dealers or distributors Improve company image Deal with service and other customer problems Make a sale

Planning for an Exhibition Clear objectives should be set. Selection criteria for evaluating visitors should be determined Design strategies Promotional strategies

Characteristics of a good exhibitor Exhibits a wider range of products. Staff is well informed and always in attendance at stand Informative literatures is available for visitors. Seating arrangement or office is provided on the stand.

PROMOTION MIX Word of Mouth Promotion When a customer talks about a product and recommends it to other customers, he is more credible as he is not perceived to have any vested interest in promoting the product.

Managing Word of Mouth promotion When designers visualize and design a product or service, focus is on satisfying the need of the customers. Talkability is purposely incorporated in the product. Identify customers who are likely to talk freely and with enthusiasm and provide the product or service to them early, even free. Customers will talk more if they have the product and believe that everyone cannot have it. (limited edition products) Which run out of supply. If the product or service is seen as a part of the daily life or business of a celebrity, it will be talked about immensely. Rankings by credible agencies and experts draw attention of customers. Company has to organize forums and activities like discussion forums where customers can talk. Bloggers can be used by companies to generate positive word of mouth. Increasing power of word of mouth leads to formation of communities of customers. Companies can use this to generate positive buzz about their offerings.

Definition: Advertising is any paid form of non-personal presentation by an identified sponsor.

Five Ms of Advertising
MESSAGE

MONEY
Factors to Consider Stages in PLC Market Share and consumer base Competition and clutter Advertising frequency Product Substitutability

MISSION
Sales Goals Advertising Objectives

Message generation Message evaluation and selection Social-responsibility review

MEASUREMENT

MEDIA
Reach, frequency, impact, media types, Specific media vehicles Media timing Geographical media allocation

Communication impact Sales Impact

1.

M Mission

(Advertising Objectives) Position the offering: Advertisements are used for positioning products in the target audience. 1. Product characteristics and customer benefits. 2. Price-Quality 3. Product use 4. Product user 5. Product class 6. Symbols 7. Competition

Creating Awareness: Creating Awareness helps to legitimate a company, its products and its representatives to customers. Advertising improves acceptance of products and salespeople.
Stimulate trial: Advertising that stimulates trial increases the diffusion rte of product among the target audience.

Remind and reinforce: To remind consumers of the brands existence and reinforce its image. The objective of advertising is to maintain top of the mind awareness and favourable associations. Provide support for sales force: Advertising provides support to sales force by identifying warm prospects and communicating with otherwise unreachable members of a decision making unit. Corrections misconceptions: Companies or brands that may have got tarnished due to negative publicity can be resuscitate by advertising.

Deciding the Advertising Objectives Methods: 1. AIDA, the Four-Stage Model Attention Interest Desire Action -

Attract Attention Gain Interest Arouse a Desire result in Action

2. The Five-Stage Model Awareness Interest Evaluation Trial Adoption 3. DAGMAR Defining Advertising Goals for Measuring Advertising Results

2.

M - (MONEY)

Percentage of Sales Method Affordability Method Matching Competition Objective and task Method Regression analysis Adaptive Control Model Compromise

Affordability Method: Executive judgment decides, the amount to be spent on advertising. Matching Competition: Some companies match expenditures or use a similar percentage of sales figure as their major competitors. Objective and task method: The advertising budget depends on the communication objectives and costs of tasks required to achieve them. Regression Analysis: Regression analysis is done based on historical data either time series data or cross-sectional data. Time series data are records of advertising expenditure and sales for a specific period over different markets.

Adaptive Control Model:

A sales response curve and locates an optimal level of ad expenditure. Firm will now experiment with advertising at non-optimal levels in selected test markets. The new information coming out of the experimental marketing is added to the sales response function. Compromise: In actual practice, marketing executives usually blend some well-accepted methods and arrive at a compromise budget. The budget decision is closely linked to the advertising objectives, the media decision and the copy decision.

PRINT ADVERTISEMENT Readers see 1. Picture or illustration 2. Headline Aadi Sales 50% offer 5.99% interest rate on finance 1 + 4 Offer, Pay for 1 and get 4) 3. Body copy (conditions) Picture must be strong enough to draw attention Headline must reinforce the picture and lead the person to read the copy.

3.

M MESSAGE

An advertising message translates the platform into words, symbols and illustrations, which are attractive and meaningful to target audience.

Print Advertisement Illustration at the top, followed by the headline and the copy after the headline. Overuse of colors may distract consumers Advertisement should contain a headline which might promise a benefit, deliver news, offer a service Long Headline has better chances of being read than a shorter headline. Headline or the illustration should contain the brand name noticeably, which must subsequently be repeated as many times as possible in the advertisement. Message (Benefit) should be important to the target audience. Message should be couched in the customers language and not the language of the advertiser. Illustration should sell the product benefits by using pictures. In body copy, long paragraphs and sentences should be avoided, whit space should be used to avoid it looking too heavy to read. Print ads should be in black colored letters on a white space, and not the other way around. Use of capitals and odd fonts obstructs reading.

TELEVISION ADVERTISEMENTS TV Commercials are of short duration. Mostly communicate only one major selling proposition. TV advertising uses one of the three approaches: 1. Suggests a reason for the customer to buy. 2. No over benefit is mentioned. 3. Intention is to involve the viewer by telling a story. 4. Appeal attempt to register the brand as significant in the market.

ADVERTISEMENTS FORMATS Humorous advertisements funny Commercials Example : Boomer Slice of life advertisements actor argues with another about the merits of a product. These advertisements are effective. Example : Tata Sky Dish (160 channels, only 440 Rs.) Testimonial advertisements loyal users of the product testifying to its virtues when they do not know that they are being filmed. Example : Bathroom cleaner Product demonstration able to persuade Example : Vim one drop is enough. Advertisements that are compared Example: Horlicks and Complan

Advertisements that provide solutions Example: Mr. Muscle for cleaning kitchen room and dirt places Pitchman admire the merits of the product announcing new products. Some Advertisements a character is used to sell the product for a long time. Characters are above average in their ability to change brand preference. Advertisements which contain news Emotions in an advertisement. Example : Brooke Bond 3 Roses Testimonials by celebrities Cartoons sells products of children

Musicals: Customers tune in to the music so intently that they tune out the advertised product. Example : TITAN Sun Network (tan tanaa tan)

ADVERTISING MORE EFFECTIVELY Brand Name:

Brand name should appear within first ten seconds of the advertisement. And should be repeated as often as possible. To repeat brand name we can do, like spelling brand name with accompanying music or playing a jingle with the brand name featuring in it prominently. It is possible to do with irritating the viewer.

Package: Advertisements which end by showing the package are more effective in changing Brand preference.

Appetizing Food: More tempting the product looks the more it sells.
Close Ups: A Close up of the product is a good idea. The closer a look the viewers, the more they desire it.

Emphatic opening: If an Advertisement grabs attention in the first frame with a visual surprise, it has a better chance of holding the viewer. Avoid visual dullness: Viewer will pay attention if he sees something that he has never seen before. Scenes: Scenes without confusing the viewers. Product in use: It is useful to show the product being used. Miscomprehension: Advertisement should state its message very clearly.

Factors in an Ad that Bring about Audience Persuasion 1. The source of the endorser The Credibility of the Source Likeability/Attractiveness of the source. The sources approach to the views and disposition of the audience 2.

Message Message Sidedness Order of Presentation

Climax Order Anti Climax Order Pyramidal Order

Message Conclusion

Message Appeal: Rational Appeals Example: Sundrop ITC used rational appeal in its campaigns for sundrop, its superrefined oil. New Sundrop super-refined oil offers not just one, but four important its natural flavor. Easy food-absorption Energy Heart-care vitamins A, D and E Zodiac highlighted the product features one by one and tried to convince the audience why Zodiac is the best shirt. Brand to Brand Comparison New Pepsodent was that it is 102 percent superior to Colgate Dental Cream.

Humour Appeal: Example: Newsweek If your advertising doesnt work in Time magazine, change your advertising agency Headline of a subsequent ad for Newsweek If your advertising doesnt work in Time magazine, dont change your agency place it in Newsweek Fear Appeal: Example: United India Assurance and Max New York Life The message tries to evoke feelings of fear or anxiety in the minds of the receiver. Ad follows like this. Today .. A picture of Safety Tomorrow An invitation of disaster Your Protection is our concern Take Cover Under United India

DEVELOPING THE COPY

Keep Message Simple and Short Testing the Copy Laboratory Methods Simulated environment Real/Natural environment, market tests DAR Test Day After Recall technique

4. MEDIA (DECIDING THE MEDIA)

Audio / visual / audio-visual / electronic Media Radio Television Internet Cinema Cassettes-audio and video Outdoor

Print Media Newspaper Magazines Trade Journals Direct Mail Commonly used Outdoor Media Vehicles Hoardings Posters Neon Signs and other illuminations Transit advertising (Railways and other transport) Fairs and exhibitions Amusement parks Dance, drama and puppet shows Loudspeaker announcements Balloons and sky writings

Media Characteristics Exposure Reach and Frequency Weighing Reach and Frequency against Cost Measuring TV viewership

Exposure: How many exposures of a message are required to take a typical member of the target group through all the stages of the purchase process. Initial exposure may create a curiosity Next exposure may perhaps create some interest. Some more exposures at well-planned intervals may result in a desire to buy. Reach and Frequency: How many exposures can be purchased for an already-decided budget? Which media/media vehicle offers the best buy? Reach: denotes the total no. of persons exposed to the given media. Frequency: denotes the no. of times the audience is exposed to the media vehicle during this period. Weighing Reach and Frequency Against Cost: Newspaper rates per line or column size Magazines per page or half page Radio and Televisions time slots of 10 seconds, 20 seconds etc.

Media Schedule Media category: TV, magazines Media vehicles: Starplus in TV Business India Magazines Economic Times - Newspaper Programme choice kaun banega crore pati Number of insertions no. of planned insertions The details: size specifications, location etc. Timing: Continuous approach Pulsing approach Flighting approach

5. M-

MEASUREMENT

EVALUATING ADVERTISING EFFECTIVENESS

Sales vs communication if sales is objective Awareness vs communication if creating awareness is the objective Positioning vs communication If positioning of the brand into the segment customers.