How do Marketers Understand & Communicate with Consumers – Pre

study

Market research is any organized effort together information about markets or customers. It is a
very important component of business strategy. The term is commonly interchanged with
marketing research; however, expert practitioners may wish to draw a distinction, in that
marketing research is concerned specifically about marketing processes, while market research is
concerned specifically with markets.

Market research, includes social and opinion research and is the systematic gathering and
interpretation of information about individuals or organizations using statistical and analytical
methods and techniques of the applied social sciences to gain insight or support decision making

Introduction to Market Research

Good instincts and intuition certainly play important roles in business. But gut feelings about your
customers’ needs and preferences aren’t enough. If you want to minimize risk and improve your
chances of success, you need sound and objective data. That’s where market research comes in.

Market research is the process of collecting and analyzing information about the customers you
want to reach, called your target market. This information provides you with the business
intelligence you need to make informed decisions. Market research can help you create a business
plan, launch a new product or service, fine tune your existing products and services, expand into
new markets, develop an advertising campaign, set prices, and/or select a business location.

Types of Market Research

Market research methods fall into two basic categories: primary and secondary. Your research
might involve one or both, depending on your company’s needs.

Primary research involves collecting original data about the preferences, buying habits, opinions,
and attitudes of current or prospective customers. This data can be gathered in focus groups,
surveys, and field tests. Secondary research is based on existing data from reference books,
magazines and newspapers, industry publications, chambers of commerce, government agencies,
or trade associations. It yields information about industry sales trends and growth rates,
demographic profiles, and regional business statistics.

The bulk of your secondary research now is available on the Internet thanks to the proliferation of
sites that provide or sell data about individuals and companies and because most publications now
are available online. 

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Using Market Research

Market research allows you to pinpoint a host of key business factors about your market. It can
help you identify:

 Growth trends in your business sector

 Size of your target market
 Best location for your business
 How your business stacks up against the competition
 Factors that influence buying decisions
 Degree of demand for your product or service

It also can reveal key information about your customers and prospects, including:

 Their demographic profile

 The types of features or special services they want
 What they like and dislike about your product or service
 How they use your product or service
 How often they buy and how much they will pay for your product or service

Once you analyze the results of your market research, you'll be in a better position to create a
focused business plan, develop a targeted advertising campaign, set competitive prices, select a
new business location, or take other steps to grow your company.

Primary and Secondary Market Research

Success depends on a lot of things, but when you have information about a particular market
segment, a geographic area, or customer preferences, you'll be better prepared to make the
decisions that can make or break your business.

Many companies use market research as a guide. Whether you want to expand your business into a
new area or introduce a new product, primary and secondary market research can provide valuable
insight to help you shape your business and prevent costly missteps.

Secondary Research

If you’re considering extending your business into new markets or adding new services or product
lines, start with secondary research. This type of research is based on information gleaned from
studies previously performed by government agencies, chambers of commerce, trade associations,
and other organizations. This includes Census Bureau information and Nielsen ratings.

You can find much of this kind of information in local libraries or on the Web, but books and
business publications, as well as magazines and newspapers, are also great sources.

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Although secondary research is less expensive than primary research, it's not as accurate, or as
useful, as specific and customized research. For instance, secondary research will tell you how
much teenagers spent last year on basketball shoes, but not how much they're willing to pay for the
shoe design your company has in mind.

Primary Research

Simply put, primary research is research that's tailored to a company's particular needs. By
customizing tried-and-true approaches — focus groups, surveys, field tests, interviews or
observation — you can gain information about your target market. For example, you can
investigate an issue specific to your business, get feedback about your Web site, assess demand for
a proposed service, gauge response to various packaging options, and find out how much
consumers will shell out for a new product.

Primary research delivers more specific results than secondary research, which is an especially
important consideration when you're launching a new product or service. In addition, primary
research is usually based on statistical methodologies that involve sampling as little as 1 percent of
a target market. This tiny sample can give an accurate representation of a particular market.

Using Both for Your Business

Savvy entrepreneurs will do secondary research first and then conduct primary research. For
example, the owner of a video-rental shop would want to know all about a neighborhood before
opening a new store there. Using information gleaned from secondary sources, the owner can learn
all kinds of demographic data, including detailed income data and spending patterns.

They can then send out a questionnaire to a sampling of households to find out what kinds of
movies people like to rent. That primary-research technique will help when it comes time to stock
the store with the latest Hollywood releases.

Secondary research lays the groundwork and primary research helps fill in the gaps. By using both
types of market research, business owners get a well-rounded view of their market and have the
information they need to make important business decisions.

Market-Research Basics for Businesses

Before selling a product or service, it's important to know the market that you will be entering into.
Research includes finding out what potential customers need, want and don't want, and why. Your
goal is to build a demographic profile of your customers. A research or business library can prove
helpful for studying the manners in which other small businesses have approached their target
audiences. You can then take a similar approach, adding your own creativity and the particular
benefits of your products or services.

Surveys, questionnaires, and focus groups are three among the many ways to obtain original data
on potential customers. You can also get basic information when a customer calls for your services,

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visits your facility, or browses your web site. When customers make a purchase, or any kind of
inquiry, you can find out where they heard about your business. In this manner you can better plan,
and track, your marketing efforts.

Your marketing plan should be the result of your market research. You can then proceed to use the
most viable means to promote and advertise your products or services.

There are many factors that will impact on your marketing plan including:

 Your budget
 The type of products or services you are selling
 Your geographic region (Are you selling locally? Nationally? Globally?)
 The amount of sales volume you can handle
 Your methods of distribution
 The amount of personal service you can or cannot provide
 Your personnel

From market research you can also learn about pricing, trends, and competition. Typically, you will
want to structure your pricing to be competitive. Depending on your position in the market, you
may opt to undersell the competition and offer discounted items, or you may price items on the
higher end and offer personalized attention and strong customer service. Pricing strategies are
important and you'll adjust as your business grows.

Market research will also help you gain a greater understanding of the actual value of your product
or service in the marketplace. By continuing to do market research as your business evolves, you
will see what changes occur within your particular market.

Means of researching the market include:

 Trade magazines
 Trade associations or organizations specific to your type of business
 Industry Web sites and email newsletters
 Visiting competing businesses and/or reading the annual reports of competitors
 The local Chamber of Commerce

When gathering market data you can use either primary or secondary research. Primary research
means gathering your own data based on surveys, focus groups, and through other means.
Secondary research means using other sources such as the United States Census Report, books, or
trade magazines. Many businesses use a combination of both primary and secondary research.

Whether your goal is to expand into new markets, introduce a new product or service, or gauge
customer reactions, even the smallest businesses can benefit from a simple but well-planned
market-research study.

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Market research helps you to understand your market, your customers, your competitors, and
larger industry trends. High-quality research will reveal details about your current customers and
will help you to target new customers. For example, before you open an organic produce market,
find out if there's a demand for food grown without pesticides and whether customers will pay
more for it.

In addition to the insight that you’ll gain into customer needs, market-research studies can help you
to avoid costly mistakes, such as introducing an unpopular new line of goods or developing a
service that no one really wants. Coca-Cola's introduction of New Coke in the 1980s demonstrates
what happens when decisions aren't supported by solid research. Coke revised the formula of its
traditional brand of soft drink and lost millions in sales. By performing a study and determining
what people thought of the new formula, the company could have avoided public-relations
headaches.

When you establish a market-research study for your business, follow these basic guidelines:

 Use the right sample. The research sample — your study’s group of participants — has to be
just the right size. Too large a sample is not cost effective, and too small a sample offers
inaccurate results. You also need to have the right samples from your overall population.
Even a sample as small as one percent of a market or group will work, as long as the sample
truly reflects the overall geographic area or population that you want to query.
 Mirror the market. Your surveys must reflect all of characteristics of the market from which
it is drawn, such as geographical area or population group. Nielsen TV ratings are based on
very small samplings of the overall audience, but they're accurate to a few percentage
points. For example, if half of your target market is aged 65 and older and half is 30 and
younger, make sure that the sample size accurately reflects this demographic. If one-third of
your market lives in one town and two-thirds lives in another, your survey must reflect the
geographic split in order to give you accurate and useful information.
 Get quantifiable results. Successful studies follow proven approaches based on statistics
and sampling. But don’t worry — you don't need a PhD in mathematics. Most results can be
tabulated with simple arithmetic and broken down into percentages that anyone can
understand.

If you follow these guidelines, you’ll collect information that can contribute to the success of your
enterprise. In short, market-research studies can save you money, save you time, and — above all
— save you from disaster.

Market research for business/planning

Market research is for discovering what people want, need, or believe. It can also involve
discovering how they act. Once that research is completed, it can be used to determine how to
market your product.

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Questionnaires and focus group discussion surveys are some of the instruments for market
research.

For starting up a business, there are some important things:

 Market information

Through Market information one can know the prices of the different commodities in the market,
as well as the supply and demand situation. Information about the markets can be obtained from
different sources, varieties and formats, as well as the sources and varieties that have to be
obtained to make the business work.

 Market segmentation

Market segmentation is the division of the market or population into subgroups with similar
motivations. It is widely used for segmenting on geographic differences, personality differences,
demographic differences, technographic differences, use of product differences, psychographic
differences and gender differences.

 Market trends

Market trends are the upward or downward movement of a market, during a period of time. The
market size is more difficult to estimate if one is starting with something completely new. In this
case, you will have to derive the figures from the number of potential customers, or customer
segments.

Besides information about the target market, one also needs information about one's competitors,
customers, products, etc. Lastly, you need to measure marketing effectiveness. A few techniques
are:

 Customer analysis
 Choice Modeling
 Competitor analysis
 Risk analysis
 Product research
 Advertising the research
 Marketing mix modeling

The Five Basic Methods of Market Research

While there are many ways to perform market research, most businesses use one or more of five
basic methods: surveys, focus groups, personal interviews, observation, and field trials. The type of
data you need and how much money you’re willing to spend will determine which techniques you
choose for your business.

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1. Surveys. With concise and straightforward questionnaires, you can analyze a sample
group that represents your target market. The larger the sample, the more reliable your
results will be.

In-person surveys are one-on-one interviews typically conducted in high-traffic locations

such as shopping malls. They allow you to present people with samples of products,
packaging, or advertising and gather immediate feedback. In-person surveys can generate
response rates of more than 90 percent, but they are costly. With the time and labor
involved, the tab for an in-person survey can run as high as INR 1000 per interview.

Telephone surveys are less expensive than in-person surveys, but costlier than mail.
However, due to consumer resistance to relentless telemarketing, convincing people to
participate in phone surveys has grown increasingly difficult. Telephone surveys generally
yield response rates of 50 to 60 percent.

Mail surveys are a relatively inexpensive way to reach a broad audience. They're much
cheaper than in-person and phone surveys, but they only generate response rates of 3
percent to 15 percent. Despite the low return, mail surveys remain a cost-effective choice
for small businesses.

Online surveys usually generate unpredictable response rates and unreliable data, because
you have no control over the pool of respondents. But an online survey is a simple,
inexpensive way to collect anecdotal evidence and gather customer opinions and
preferences.

2. Focus groups. In focus groups, a moderator uses a scripted series of questions or topics to
lead a discussion among a group of people. These sessions take place at neutral locations,
usually at facilities with videotaping equipment and an observation room with one-way
mirrors. A focus group usually lasts one to two hours, and it takes at least three groups to
get balanced results.

3. Personal interviews. Like focus groups, personal interviews include unstructured, open-
ended questions. They usually last for about an hour and are typically recorded.

Focus groups and personal interviews provide more subjective data than surveys. The
results are not statistically reliable, which means that they usually don't represent a large
enough segment of the population. Nevertheless, focus groups and interviews yield valuable
insights into customer attitudes and are excellent ways to uncover issues related to new
products or service development.

4. Observation. Individual responses to surveys and focus groups are sometimes at odds
with people's actual behavior. When you observe consumers in action by videotaping them
in stores, at work, or at home, you can observe how they buy or use a product. This gives
you a more accurate picture of customers' usage habits and shopping patterns.

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 5. Field trials. Placing a new product in selected stores to test customer response under
real-life selling conditions can help you make product modifications, adjust prices, or
improve packaging. Small business owners should try to establish rapport with local store
owners and Web sites that can help them test their products.

Top 10 Market Research Mistakes

Market research is essential to understanding your customers and your competition. Market
research can also identify trends that affect sales and profitability. But successful market research
takes planning and strategy. Here are some of the most common mistakes businesses make in
conducting market research and tips for avoiding them.

1. Overspending. If you are smart about it, performing market research does not require a
huge budget. But in their haste, many business owners shell out big bucks on the first
market research firm that promises to provide them with all the data they could ever want
on their target audience. If you are hiring an outside firm, shop around for the best deal.
2. Not knowing what you are looking for. Doing market research in the hopes of discovering
something (anything!) about your customers can be an exercise in futility. You should know
what information you need before you even begin. Have questions ready for which you are
seeking answers, such as "What are the specific needs of my customers?" or "How much
would my customers be willing to spend on this product?"
3. Poor choice of reference materials. The Internet is a great place to start your research.
Business libraries are also worth visiting. But you must consider the source of the
information you are getting. This is particularly a problem on the Internet, where sites can
include dated or biased material. Research your research materials; check dates and double-
check pertinent information.
4. Not thoroughly researching the competition. Get as much information about your
competition as you can. The more you know about how they are conducting business, their
pricing, and their strengths and weakness, the more effectively you can establish your
competitive edge.
5. Not researching price information. If done properly, your market research should tell you
what customers expect to spend and how high they will go to purchase a product or service
like yours.
6. Researching the wrong group. Before accumulating first-hand research from your
customers, you need to have an idea of who they are. For example, a focus group must
meet your demographic needs, and a survey must be answered by prospective customers.
Often businesses make the mistake of gathering random data, much of which does not
apply to their business needs.
7. Not honing a good research instrument. Just handing out a questionnaire is not good
enough. You need to be sure that your survey will provide you the answers you need. Take
the time to hone a solid research instrument that helps you find out about your customer
base.

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 8. Not being aggressive enough in your research efforts. The best surveys or questionnaires
are useless if you do not get customers to answer them. Businesses are often not aggressive
enough and end up with piles of unanswered survey forms stacked up by the cash register.
9. Relying on one set of data. Whether it is the U.S. Census or a survey you personally
conducted, one set of data is rarely enough to get an overview of your target audience. Use
various data, including information from primary and secondary resources.
10. Ignoring your market research. The only thing worse than not doing market research at all
is spending money on it and not utilizing the results. Some business owners also tend to toss
good research aside just because it did not support the answers they wanted to see

Marketing research process is a set of six steps which defines the tasks to be accomplished in
conducting a marketing research study. These include problem definition, developing an approach
to problem, research design formulation, field work, data preparation and analysis, and report
generation and presentation.

Stages of marketing research process

Step 1: Problem Definition

The first step in any marketing research project is to define the problem. In defining the problem,
the researcher should take into account the purpose of the study, the relevant background
information, what information is needed, and how it will be used in decision making. Problem
definition involves discussion with the decision makers, interviews with industry experts, analysis of
secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem
has been precisely defined, the research can be designed and conducted properly.

If you are considering conducting marketing research, chances are you have already identified a
problem and an ensuing informational need. Of the six steps in marketing research, this is always
the first one. Your problem or issue will likely be recognized by one or more levels of management.

Step 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or theoretical

framework, analytical models, research questions, hypotheses, and identifying characteristics or
factors that can influence the research design. This process is guided by discussions with
management and industry experts, case studies and simulations, analysis of secondary data,
qualitative research and pragmatic considerations. Once your problem is better defined, you can
move onto developing your approach. Generally speaking, your approach should be developed
almost exclusively around a defined set of objectives. Clearer objectives developed in Step 1 will
lend themselves to better approach development. Developing your approach should consist of an
honest assessment of your team’s market research skills, establishing a budget, understanding your
environment and its influencing factors, developing an analysis model, and formulating hypotheses.

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'Step 3: Research Design Formulation'

A research design is a framework or blueprint for conducting the marketing research project. It
details the procedures necessary for obtaining the required information, and its purpose is to
design a study that will test the hypotheses of interest, determine possible answers to the research
questions, and provide the information needed for decision making. Conducting exploratory
research, precisely defining the variables, and designing appropriate scales to measure them are
also a part of the research design. The issue of how the data should be obtained from the
respondents (for example, by conducting a survey or an experiment) must be addressed. It is also
necessary to design a questionnaire and a sampling plan to select respondents for the study. Based
upon a well-defined approach from Steps 1 & 2, a framework for the designing your marketing
research program should be apparent.

This step is the most encompassing of all steps in marketing research, requiring the greatest
amount of thought, time and expertise — and is the point at which the less experienced will obtain
assistance from an internal/external market research experts. Since the intelligence eventually
gained from the research is so closely related to the selected research design, this is the single most
important six steps in marketing research, and the step most vulnerable to the typical research
errors. Research design includes incorporating knowledge from secondary information analysis,
qualitative research, methodology selection, question measurement & scale selection,
questionnaire design, sample design & size and determining data analysis to be used.

More formally, formulating the research design involves the following steps:

1. Secondary data analysis

2. Qualitative research
3. Methods of collecting quantitative data (survey, observation, and experimentation)
4. Definition of the information needed
5. Measurement and scaling procedures
6. Questionnaire design
7. Sampling process and sample size
8. Plan of data analysis

Step 4: Field Work or Data Collection

Often called data collection or survey fielding, this is the point at which the finalized questionnaire
(survey instrument) is used in gathering information among the chosen sample segments. There are
a variety of data collection methodologies to consider. Data collection involves a field force or staff
that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or
computer-assisted personal interviewing), from an office by telephone (telephone or computer-
assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with pre-
recruited households). Proper selection, training, supervision, and evaluation of the field force
helps minimize data-collection errors.

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Step 5: Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Each
questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or
letter codes are assigned to represent each response to each question in the questionnaire. The
data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input
directly into the computer. Verification ensures that the data from the original questionnaires have
been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning
to the data that have been collected. Univariate techniques are used for analyzing data when there
is a single measurement of each element or unit in the sample, or, if there are several
measurements of each element, each RCH variable is analyzed in isolation. On the other hand,
multivariate techniques are used for analyzing data when there are two or more measurements on
each element and the variables are analyzed simultaneously.

All analysis that can be performed, from complex to simple, depends on how the questionnaire was
constructed. Less complex analysis on smaller data sets can be handled with any of a number of
office suite tools, while more complex analysis and larger data sets require dedicated market
research analysis software. Types of analysis that might be performed are simple frequency
distributions, cross tab analysis, multiple regression (driver analysis), cluster analysis, factor
analysis, perceptual mapping (multidimensional scaling), structural equation modeling and data
mining

Step 6: Report Preparation and Presentation

The entire project should be documented in a written report which addresses the specific research
questions identified, describes the approach, the research design, data collection, and data analysis
procedures adopted and presents the results and the major findings. The findings should be
presented in a comprehensible format so that they can be readily used in the decision making
process. In addition, an oral presentation should be made to management using tables, figures, and
graphs to enhance clarity and impact.

Reporting and presentation, if not the most important of the steps in marketing research, is easily
the second behind research design. All business critical information and knowledge that comes
from your market research investment are limited by how they are presented to decision makers.
There are as many reporting styles as there are research reports, but some are definitely better
than others, and there are definitely trends to be aware of.

For these reasons, interviews with experts are more useful in conducting marketing research for
industrial firms and for products of a technical nature, where it is relatively easy to identify and
approach the experts. This method is also helpful in situations where little information is available
from other sources, as in the case of radically new products.

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Secondary data analysis

Secondary data are data collected for some purpose other than the problem at hand. Primary data,
on the other hand, are originated by the researcher for the specific purpose of addressing the
research problem. Secondary data include information made available by business and government
sources, commercial marketing research firms, and computerized databases. Secondary data are an
economical and quick source of background information. Analysis of available secondary data is an
essential step in the problem definition process: primary data should not be collected until the
available secondary data have been fully analyzed.

Qualitative research

Information, industry experts, and secondary data may not be sufficient to define the research
problem. Sometimes qualitative research must be undertaken to gain a qualitative understanding
of the problem and its underlying factors. Qualitative research is unstructured, exploratory in
nature, based on small samples, and may utilize popular qualitative techniques such as focus
groups (group interviews), word association (asking respondents to indicate their first responses to
stimulus words), and depth interviews (one-on-one interviews which probe the respondents'
thoughts in detail). Other exploratory research techniques, such as pilot surveys with small samples
of respondents, may also be undertaken.

Marketing Research Steps: Marketing Research Approach

Once your problem is better defined, you can move onto developing marketing research approach,
which will generally be around a defined set of objectives.

Clear objectives developed in Step 1 will lend themselves to better marketing research approach
development. Developing your approach should consist of honestly assessing you and your team’s
market research skills, establishing a budget, understanding your environment and its influencing
factors, developing an analysis model, and formulating hypotheses.

Project Analysis

o How difficult is the project to execute?

o Is it a large sample (500+) or small sample (<200)?
o Will the project need advanced analysis?
o What are the likely methodological approaches?
o Is in-depth and detailed reporting or executive summary reporting needed?

Skills Analysis

o Is there in-house market research available to meet project needs?

o Is the in-house market research expertise available during the given timeframe?
o What parts of the market research process can be handled internally?

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Budget Analysis

o Is this a strategic problem/issue or a tactical one?

o What is the information worth?
o Where will the budget come from, and can it be shared between departments?
o Who are those most likely to benefit from the research, and likely those most willing
to fund the project?
o In what timeframe will budget be available?

Environment

o What is the overall economic environment?

o What is the economic environment relative to your products/services?
o What is the governmental environment (regulatory, etc.)?

Overall Theory of the Marketing Research Approach

o What is your overall theory and hypothesis?

o What do you intend to prove or disprove?
o What actions are your company willing to take based upon survey results?
o What are the internal/external roadblocks that will need to be overcome to drive
results?

Types of Media:
Media especially refers to two main divisions, the print media such as Newspapers & Magazines
and the electronic media such as Radio and Television. The role of the media in a democratic
country is to relay the facts to the people (tell them what they NEED to know). Media is considered
as a mirror of the society and to be the 4th pillar of the society. The other three being legislative,
executive and judiciary.

Media especially categorized in to two main divisions. One is Print Media and another one is
Electronic Media.
Print Media would be Newspapers and Magazines.
Electronic Media would be Radio and Television.

Newspapers & Magazines: A publication that appears regularly and frequently carries news about a
wide variety of current events. One of the most important functions of the newspaper -- a crucial
function in a democracy -- is to provide citizens with information on government and politics.

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Radio & Television:
Radio is a wireless transmission through space of electromagnetic waves in the approximate
frequency range from 10 kilohertz to 300,000 megahertz. Communication of audible signals
encoded in electromagnetic waves. Transmission of programs for the public by radio broadcast. An
apparatus used to transmit radio signals; a transmitter. An apparatus used to receive radio signals;
a receiver.

Television is the transmission of visual images of moving and stationary objects, generally with
accompanying sound, as electromagnetic waves and the reconversion of received waves into visual
images. An electronic apparatus that receives electromagnetic waves and displays the reconverted
images on a screen. The integrated audible and visible content of the electromagnetic waves
received and converted by such an apparatus. The industry of producing and broadcasting
television programs.

The Different Types of Media

Daily newspapers

Daily newspapers cover national, state, and local education initiatives; elementary and secondary
school education; and other related topics from many different angles - from writing a profile on a
state education leader to covering a local school board meeting.

Weekly newspapers

Weekly newspapers (or "weeklies") are usually either suburban papers found in close proximity to
large cities or rural papers that provide isolated areas with a link to the nearest town or county
seat. They may be offered for sale at newsstands, by subscription, or distributed free of charge.

Weeklies primarily focus on events and issues that are directly tied to the communities they serve.
Most weeklies also offer a calendar of area events. Contact the calendar editor about upcoming
community meetings or other events.

Wire services

Wire services, such as the Associated Press (AP) or Reuters, are national or international news
organizations that provide print and broadcast media around the country with up-to-the-minute

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news. The information is transmitted directly into the news room through telephone lines,
microwave signals, or other electronic means of delivery.

Magazines

Magazines generally offer more comprehensive, in depth coverage of a subject than newspapers.
Consequently, they also demand longer lead times. Many magazines have editorial calendars,
which provide information about special issues or features planned for the year. To find out what a
magazine has planned, request an editorial calendar from the magazine's advertising department at
the beginning of each year.

Television

Television is different from all other media in that it demands visual presentation of your message

Radio

Radio programming offers a variety of formats for communicating to a number of distinct

audiences. Each radio station offers regular and special programming combinations.

 News programs provide a vehicle for releasing important and breaking news. Radio
newscasts usually air at least twice every hour, allowing your statement to be edited into
many sound bites for repeated use throughout the day.
 Regularly scheduled programs (interviews, talk shows, etc.) provide a public platform to
discuss education reform and your community's efforts to achieve education goals in
greater length and detail than in normal radio newscasts - which are generally very brief.
 Call-in shows often serve as the modern equivalent of the town meeting. The most common
tend to focus on issues of controversy and community concern. Although call-in programs
can be unpredictable, they are very popular with the general public in large and small
markets, and extremely influential in determining public opinion.
 Public service and public affairs programs are regularly or specially scheduled programs that
usually feature a recognizable host.
 Explaination of the different types of media with the advantages and disadvantages:

Newspapers:

Newspapers are one of the traditional mediums used by businesses, both big and small alike, to
advertise their businesses.
Advantages Disadvantages

· Allows you to reach a huge number of · Ad space can be expensive

people in a given geographic area · Your ad has to compete against the clutter of other

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 advertisers, including the giants ads run by supermarkets
· You have the flexibility in deciding the
and department stores as well as the ads of your
ad size and placement within the
competitors
newspaper
· Poor photo reproduction limits creativity
· Your ad can be as large as necessary
· Newspapers are a price-oriented medium; most ads are for
to communicate as much of a story as
sales
you care to tell
· Expect your ad to have a short shelf life, as newspapers are
· Exposure to your ad is not limited;
usually read once and then discarded.
readers can go back to your message
· You may be paying to send your message to a lot of people
again and again if so desired.
who will probably never be in the market to buy from you.
· Free help in creating and producing
· Newspapers are a highly visible medium, so your
ad copy is usually available
competitors can quickly react to your prices
· Quick turn-around helps your ad
· With the increasing popularity of the Internet, newspapers
reflect the changing market conditions.
face declining readership and market penetration. A growing
The ad you decide to run today can be
number of readers now skip the print version of the
in your customers' hands in one to two
newspaper (and hence the print ads) and instead read the
days.
online version of the publication.


Magazines:

Magazines are a more focused, albeit more expensive, alternative to newspaper advertising. This
medium allows you to reach highly targeted audiences.
Advantages Disadvantages

· Allows for better targeting of audience, as you can choose · Long lead times mean that you
magazine publications that cater to your specific audience or have to make plans weeks or
whose editorial content specializes in topics of interest to your months in advance
audience. · The slower lead time heightens
· High reader involvement means that more attention will be the risk of your ad getting
paid to your advertisement overtaken by events
· Better quality paper permits better color reproduction and full- · There is limited flexibility in terms
color ads of ad placement and format.
· The smaller page (generally 8 ½ by 11 inches) permits even · Space and ad layout costs are
small ads to stand out higher

Yellow Pages:

There are several forms of Yellow Pages that you can use to promote and advertise your business.
Aside from the traditional Yellow Pages supplied by phone companies, you can also check out
specialized directories targeted to specific markets (e.g. Hispanic Yellow Pages, Blacks, etc.);

16
interactive or consumer search databases; Audiotex or talking yellow pages; Internet directories
containing national, local and regional listings; and other services classified as Yellow Pages.
Advantages Disadvantages

· Wide availability, as mostly everyone uses

the Yellow Pages
· Pages can look cluttered, and your ad can easily get
· Non-intrusive
lost in the clutter
· Action-oriented, as the audience is actually
· Your ad is placed together with all your competitors
looking for the ads
· Limited creativity in the ads, given the need to follow
· Ads are reasonably inexpensive
a pre-determined format
· Responses are easily tracked and
· Ads slow to reflect market changes
measured
· Frequency


Radio:

Offers a wide range of publicity possibilities. It is a mobile medium suited to a mobile people. It
reaches the bedroom and breakfast table in the morning and rides to and from work in the car, lulls
us to sleep at night and goes along to the beach, to the woods and on fishing trips, a flexibility no
other medium can match.
Advantages Disadvantages

· Radio is a universal medium enjoyed by

· Because radio listeners are spread over many
people at one time or another during the day,
stations, you may have to advertise simultaneously
at home, at work, and even in the car.
on several stations to reach your target audience
· The vast array of radio program formats offers
· Listeners cannot go back to your ads to go over
to efficiently target your advertising dollars to
important points
narrowly defined segments of consumers most
· Ads are an interruption in the entertainment.
likely to respond to your offer.
Because of this, a radio ad may require multiple
· Gives your business personality through the
exposure to break through the listener's "tune-out"
creation of campaigns using sounds and voices
factor and ensure message retention
· Free creative help is often available
· Radio is a background medium. Most listeners are
· Rates can generally be negotiated
doing something else while listening, which means
· During the past ten years, radio rates have
that your ad has to work hard to get their attention.
seen less inflation than those for other media


Television:

A medium that permits the use of the printed world, spoken word, pictures in motion, color, music,
animation and sound effects all blend into one message, possesses immeasurable potency.

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Television has become a dominant force, the primary source of news and entertainment and a
powerful soapbox from which citizens protests can be communicated to the nation and the world.
This medium has greatly altered national election campaigns and has diminished the role of the
political parties. Events made large by TV shape public opinion worldwide.
Advantages Disadvantages

· Message is temporary, and may require multiple

· Television permits you to reach large
numbers of people on a national or regional
level in a short period of time
· Independent stations and cable offer new
opportunities to pinpoint local audiences
· Television being an image-building and visual · Limited length of exposure, as most ads are only
medium, it offers the ability to convey your
message with sight, sound and motion
exposure for the ad to rise above the clutter
· Ads on network affiliates are concentrated in local
news broadcasts and station breaks
· Preferred ad times are often sold out far in
advance
thirty seconds long or less, which limits the amount
of information you can communicate
· Relatively expensive in terms of creative,
production and airtime costs

Advertising is a form of communication intended to persuade an audience (viewers, readers or

listeners) to purchase or take some action upon products, ideals, or services. It includes the name
of a product or service and how that product or service could benefit the consumer, to persuade a
target market to purchase or to consume that particular brand. These brands are usually paid for or
identified through sponsors and viewed via various media. Advertising can also serve to
communicate an idea to a mass amount of people in an attempt to convince them to take a certain
action, such as encouraging 'environmentally friendly' behaviors, and even unhealthy behaviors
through food consumption, video game and television viewing promotion, and a "lazy man" routine
through a loss of exercise .

Modern advertising developed with the rise of mass production in the late 19th and early 20th
centuries. Mass media can be defined as any media meant to reach a mass amount of people.
Several types of mass media are television, internet, radio, news programs, and published pictures
and articles. Commercial advertisers often seek to generate increased consumption of their
products or services through branding, which involves the repetition of an image or product name
in an effort to associate related qualities with the brand in the minds of consumers. Different types
of media can be used to deliver these messages, including traditional media such as newspapers,
magazines, television, radio, outdoor or direct mail; or new media such as websites and text
messages. Advertising may be placed by an advertising agency on behalf of a company or other
organization.

Non-commercial advertisers that spend money to advertise items other than a consumer product
or service include political parties, interest groups, religious organizations and governmental
agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service

18
announcement.

Major Methods of Advertising (Repeatedly Getting Message Out)

Brochures or flyers

-- Many desk-top publishing and word-processing software packages can produce highly attractive
tri-fold (an 8.5 inch by 11-inch sheet folded in thirds) brochures. Brochures can contain a great deal
of information if designed well, and are becoming a common method of advertising. (See Writing
Brochures.)

Direct mail -- Mail sent directly from you to your customers can be highly customized to suit their
nature and needs. You may want to build a mailing list of your current and desired customers.
Collect addresses from customers by noticing addresses on their checks, asking them to fill out
information cards, etc. Keep the list online and up-to-date. Mailing lists can quickly become out-of-
date. Notice mailings that get returned to you. This should be used carefully and it can incur
substantial cost, you don't want to inundate your stakeholders with information so make the most
of your message. (See Using Direct Mail and Mailing Lists.)

E-mail messages -- These can be wonderful means to getting the word out about your business.
Design your e-mail software to include a "signature line" at the end of each of your e-mail
messages. Many e-mail software packages will automatically attach this signature line to your e-
mail, if you prefer. (See Netiquette - Techniques and styles of writing e-mail messages and E-mail
vs. voice mail.)

Magazines -- Magazines ads can get quite expensive. Find out if there's a magazine that focuses on
your particular industry. If there is one, then the magazine can be very useful because it already
focuses on your market and potential customers. Consider placing an ad or writing a short article
for the magazine. Contact a reporter to introduce yourself. Reporters are often on the look out for
new stories and sources from which to collect quotes. (See Classifieds of Newspapers and
Magazines.)

Newsletters -- This can be powerful means to conveying the nature of your organization and its
services. Consider using a consultant for the initial design and layout. Today's desktop publishing
tools can generate very interesting newsletters quite inexpensively. (See Newsletters.)

Newspapers (major) - Almost everyone reads the local, major newspaper(s). You can get your
business in the newspaper by placing ads, writing a letter to the editor or working with a reporter to
get a story written about your business. Advertising can get quite expensive. Newspaper are often
quite useful in giving advice about what and how to advertise. Know when to advertise -- this
depends on the buying habits of your customers. (See Classifieds of Newspapers and Magazines.)

Newspapers (neighborhood) -- Ironically, these are often forgotten in lieu of major newspapers, yet
the neighborhood newspapers are often closest to the interests of the organization's stakeholders.
(See Classifieds of Newspapers and Magazines.)

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Online discussion groups and chat groups -- As with e-mail, you can gain frequent exposure to
yourself and your business by participating in online discussion groups and chat groups. Note,
however, that many groups have strong groundrules against blatant advertising. When you join a
group, always check with the moderator to understand what is appropriate. (See the groups listed
on the right-hand side, Netiquette - Techniques and styles of writing e-mail messages and E-mail vs.
voice mail.)

Posters and bulletin boards -- Posters can be very powerful when placed where your customers will
actually notice them. But think of how often you've actually noticed posters and bulletin boards
yourself. Your best bet is to place the posters on bulletin boards and other places which your
customers frequent, and always refresh your posters with new and colorful posters that will appear
new to passers by. Note that some businesses and municipalities have regulations about the
number of size of posters that can be placed in their areas. (See Signs and Displays.)

Radio announcements -- A major advantage of radio ads is they are usually cheaper than television
ads, and many people still listen to the radio, for example, when in their cars. Ads are usually sold
on a package basis that considers the number of ads, the length of ads and when they are put on
the air. . A major consideration with radio ads is to get them announced at the times that your
potential customers are listening to the radio. (See Advertising on Radio and T.V.)

Telemarketing -- The use of telemarketing is on the rise. (See Telemarketing.)

Television ads -- Many people don't even consider television ads because of the impression that the
ads are very expensive. They are more expensive than most of major forms of advertising.
However, with the increasing number of television networks and stations, businesses might find
good deals for placing commercials or other forms of advertisements. Television ads usually are
priced with similar considerations to radio ads, that is, the number of ads, the length of ads and
when they are put on the air. (See Advertising on Radio and T.V.)

Web pages -- You probably would not have seen this means of advertising on a list of advertising
methods if you had read a list even two years ago. Now, advertising and promotions on the World
Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to
appear up-to-date. Using the Web for advertising requires certain equipment and expertise,
including getting a computer, getting an Internet service provider, buying (usually renting) a
Website name, designing and installing the Website graphics and other functions as needed (for
example, an online store for e-commerce), promoting the Website (via various search engines,
directories, etc.) and maintaining the Website. (See Building, Managing and Promoting Your
Website and Online Advertising and Promotions.)

Yellow Pages --The Yellow Pages can be very effective advertising if your ads are well-placed in the
directory's categories of services, and the name of your business is descriptive of your services
and/or your ad stands out (for example, is bolded, in a large box on the page, etc.). The phone
company will offer free advice about placing your ad in the Yellow Pages. They usually have special
packages where you get a business phone line along with a certain number of ads.

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Promotional Activities Through the Media (Reporters, Newspapers, etc.)
Articles that you write -- Is there something in your industry or market about you have a strong
impression? Consider writing an article for the local newspaper or a magazine. In your article, use
the opportunity to describe what you're doing to address the issue through use of your business.
(See Basic Writing Skills.)

Editorials and letters to the editor -- Often, program providers are experts at their service and
understanding a particular need in the community; newspapers often take strong interest in
information about these needs, so staff should regularly offer articles (of about 200 to 900 words)
for publication. (See Managing Media Relations and Basic Writing Skills.)

Press kits -- This kit is handy when working with the media or training employees about working
with the media. The kit usually includes information about your business, pictures, information
about your products, commentary from happy customers, etc. (See Managing Media Relations.)

Press releases or news alerts -- They alert the press to a major event or accomplishment and
requesting, e.g., it get included in the newspaper; they explain who, what, where, why and when;
some include pictures, quotes, etc. to make it easier for the reporter to develop an announcement
or story. (See Managing Media Relations.)

Public service announcements (PSA)s -- Many radio and some television stations will provide public
service announcements for nonprofit efforts. Usually, these PSAs are free.

Types of Advertising

8 Different Ways to Advertise Products and Services

Here are eight ways to advertise a product or service. Many businesses will not need to use all
types of advertising but can benefit from incorporating one or two.

Here are eight ways to advertise a product or service. Many businesses will not need to use all
types of advertising but can benefit from incorporating one or two.

Advertising persuades members of a particular market to take some form of action, such as buying
a product or service. There are many ways to spread an advertising message. A good ad campaign
incorporates several types of advertising to get maximum exposure.

Television Advertising

TV commercials are a popular way to mass-market messages to large audiences. Although this
medium has the ability to reach a high number of potential buyers, it is also one of the most costly
forms of advertising. For example, one 30-second TV commercial during the Super Bowl cost about
$3 million in 2009.

21
Infomercials are another form of television advertising. The infomercial is different than a
commercial because it is longer, includes more product information, and has more of a personal
tone. Although they are also costly to produce, infomercials are highly effective in creating impulse
buys because of their demonstrative and persuasive nature.

Radio Advertising

Radio commercials are an effective way for businesses to target a group of people based on
location or similar tastes. For example, a local night club seeking college student clientele would
probably consider advertising on a local pop station. Likewise, a country and western bar would
choose a local country station.

Print Advertising

Magazine and newspaper ads are another way to spread the word about a product or service. Print
also offers the ability to target a specific audience based on geography or common interests. Print
advertising usually includes larger display ads, as well as classified advertising. The classifieds are
typically very affordable, whereas display ads are a bit more pricey.

Online Advertising

Advertising online is an increasingly popular method for promoting a business. There are many
forms of online advertising. Banner ads are image ads displayed on web pages. Google AdWords is
another popular form of online advertising that matches an ad to an Internet user's search inquiry.

How to Run Successful Online Marketing Campaigns

The benefits of online marketing are enormous but can be achieved only when one knows how to run an
effective internet campaign. Here are key tips for internet marketing

Social network marketing has been the fastest-growing form of Internet advertising. This includes
using sites like Facebook, Twitter, and LinkedIn to promote a product or service. Many social
networks have advertising available, such as Facebook Ads.

Billboard Advertising

Billboard ads are large advertisements displayed on structures in public places. Most commonly,
billboards are located along highways to target passing motorists. Another type of billboard
advertising is a mobile banner or billboard. This can range from the signs seen at major sporting
event arenas to billboard advertisements pasted on the sides of semi trailers.

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In-Store Advertising

In-store advertising takes place within a retail store. For example, a company that produces a new
cleaning product might include an end cap display when they ship the product to stores. This gives
the store an attractive display that draws attention to the new product. Other types of in-store
advertising include banners and display cases.

Word of Mouth Advertising

While some may argue that word of mouth is not advertising because it's free, this form of
promotion is one of the most credible and priceless assets of any business. Even if business owners
can't buy word of mouth advertising, they can encourage their customers to tell their friends and
family about the great product or service they purchased.

Endorsements

Endorsement is similar to word of mouth promotion but typically does cost money. Having a
product or service endorsed by a celebrity can increase sales and product awareness. Not every
company can afford to have a major A-list celeb promoting a product, though. For smaller
companies, consider using local celebrities or well-known individuals within the product's niche
market. For example, many equine companies look for professional horse trainers to endorse their
products.

Which Type of Advertising is Best?

The best type of advertising depends on the business or organization and its particular needs. If a
company needs mass-market exposure and has the capital, television advertising is probably a good
fit. For a local company on a budget, a customer referral program to stimulate word of mouth
might be the best option. The best advertising campaigns typically involve several forms of media
to effectively gain maximum exposure.

MARKETING COMMUNICATION

As the term suggests, marketing communication functions within a marketing framework.

Traditionally known as the promotional element of the four Ps of marketing (product, place, price,
and promotion), the primary goal of marketing communication is to reach a defined audience to
affect its behavior by informing, persuading, and reminding. Marketing communication acquires

23
new customers for brands by building awareness and encouraging trial. Marketing communication
also maintains a brand's current customer base by reinforcing their purchase behavior by providing
additional information about the brand's benefits. A secondary goal of marketing communication is
building and reinforcing relationships with customers, prospects, retailers, and other important
stakeholders.

Successful marketing communication relies on a combination of options called the promotional mix.
These options include advertising, sales promotion, public relations, direct marketing, and personal
selling. The Internet has also become a powerful tool for reaching certain important audiences. The
role each element takes in a marketing communication program relies in part on whether a
company employs a push strategy or a pull strategy. A pull strategy relies more on consumer
demand than personal selling for the product to travel from the manufacturer to the end user. The
demand generated by advertising, public relations, and sales promotion "pulls" the good or service
through the channels of distribution. A push strategy, on the other hand, emphasizes personal
selling to push the product through these channels.

Elements of Marketing Communication

For marketing communication to be successful, however, sound management decisions must be

made in the other three areas of the marketing mix: the product, service or idea itself; the price at
which the brand will be offered; and the places at or through which customers may purchase the
brand. The best promotion cannot overcome poor product quality, inordinately high prices, or
insufficient retail distribution.

Likewise, successful marketing communication relies on sound management decisions regarding

the coordination of the various elements of the promotional mix. To this end, a new way of viewing
marketing communication emerged in the 1990s. Called integrated marketing communication, this
perspective seeks to orchestrate the use of all forms of the promotional mix to reach customers at
different levels in new and better ways.

INTEGRATED MARKETING COMMUNICATION

The evolution of this new perspective has two origins. Marketers began to realize that advertising,
public relations, and sales were often at odds regarding responsibilities, budgets, management
input and myriad other decisions affecting the successful marketing of a brand. Executives in each
area competed with the others for resources and a voice in decision making. The outcome was
inconsistent promotional efforts, wasted money, counterproductive management decisions, and,
perhaps worst of all, confusion among consumers.

Secondly, the marketing perspective itself began to shift from being market oriented to market
driven. Marketing communication was traditionally viewed as an inside-out way of presenting the
company's messages. Advertising was the dominant element in the promotional mix because the
mass media could effectively deliver a sales message to a mass audience. But then the mass market
began to fragment. Consumers became better educated and more skeptical about advertising. A
variety of sources, both controlled by the marketer and uncontrolled, became important to

24
consumers. News reports, word-of-mouth, experts' opinions, and financial reports were just some
of the "brand contacts" consumers began to use to learn about and form attitudes and opinions
about a brand or company, or make purchase decisions. Advertising began to lose some of its luster
in terms of its ability to deliver huge homogeneous audiences. Companies began to seek new ways
to coordinate the multiplicity of product and company messages being issued and used by
consumers and others.

Thus, two ideas permeate integrated marketing communication: relationship building and synergy.
Rather than the traditional inside-out view, IMC is seen as an outside-in perspective. Customers are
viewed not as targets but as partners in an ongoing relationship. Customers, prospects, and others
encounter the brand and company through a host of sources and create from these various
contacts ideas about the brand and company. By knowing the media habits and lifestyles of
important consumer segments, marketers can tailor messages through media that are most likely
to reach these segments at times when these segments are most likely to be receptive to these
messages, thus optimizing the marketing communication effort.

Ideally, IMC is implemented by developing comprehensive databases on customers and prospects,

segmenting these current and potential customers into groups with certain common awareness
levels, predispositions, and behaviors, and developing messages and media strategies that guide
the communication tactics to meet marketing objectives. In doing this, IMC builds and reinforces
mutually profitable relationships with customers and other important stakeholders and generates
synergy by coordinating all elements in the promotional mix into a program that possesses clarity,
consistency, and maximum impact.

Practitioners and academics alike, however, have noted the difficulty of effectively implementing
IMC. Defining exactly what IMC is has been difficult. For example, merely coordinating messages so
that speaking "with one clear voice" in all promotional efforts does not fully capture the meaning of
IMC. Also, changing the organization to accommodate the integrated approach has challenged the
command and control structure of many organizations. However, studies suggest that IMC is
viewed by a vast majority of marketing executives as having the greatest potential impact on their
company's marketing strategies, more so than the economy, pricing, and globalization.

ADVERTISING

Advertising has four characteristics: it is persuasive in nature; it is non-personal; it is paid for by an

identified sponsor; and it is disseminated through mass channels of communication. Advertising
messages may promote the adoption of goods, services, persons, or ideas. Because the sales
message is disseminated through the mass media—as opposed to personal selling—it is viewed as a
much cheaper way of reaching consumers. However, its non-personal nature means it lacks the
ability to tailor the sales message to the message recipient and, more importantly, actually get the
sale. Therefore, advertising effects are best measured in terms of increasing awareness and
changing attitudes and opinions, not creating sales. Advertising's contribution to sales is difficult to
isolate because many factors influence sales. The contribution advertising makes to sales are best
viewed over the long run. The exception to this thinking is within the internet arena. While banner
ads, pop-ups and interstitials should still be viewed as brand promoting and not necessarily sales

25
drivers, technology provides the ability to track how many of a website's visitors click the banner,
investigate a product, request more information, and ultimately make a purchase.

Through the use of symbols and images advertising can help differentiate products and services
that are otherwise similar. Advertising also helps create and maintain brand equity. Brand equity is
an intangible asset that results from a favorable image, impressions of differentiation, or consumer
attachment to the company, brand, or trademark. This equity translates into greater sales volume,
and/or higher margins, thus greater competitive advantage. Brand equity is established and
maintained through advertising that focuses on image, product attributes, service, or other features
of the company and its products or services.

Cost is the greatest disadvantage of advertising. The average cost for a 30-second spot on network
television increased fivefold between 1980 and 2005. Plus, the average cost of producing a 30-
second ad for network television is quite expensive. It is not uncommon for a national advertiser to
spend in the millions of dollars for one 30-second commercial to be produced. Add more millions
on top of that if celebrity talent is utilized.

Credibility and clutter are other disadvantages. Consumers have become increasingly skeptical
about advertising messages and tend to resent advertisers' attempt to persuade. Advertising is
everywhere, from network television, to daily newspapers, to roadside billboards, to golf course
signs, to stickers on fruit in grocery stores. Clutter encourages consumers to ignore many
advertising messages. New media are emerging, such as DVRs (digital video recorders) which allow
consumers to record programs and then skip commercials, and satellite radio which provides a
majority of its channels advertising free.

PUBLIC RELATIONS

Public relations is defined as a management function which identifies, establishes, and maintains
mutually beneficial relationships between an organization and the publics upon which its success or
failure depends. Whereas advertising is a one-way communication from sender (the marketer) to
the receiver (the consumer or the retail trade), public relations considers multiple audiences
(consumers, employees, suppliers, vendors, etc.) and uses two-way communication to monitor
feedback and adjust both its message and the organization's actions for maximum benefit. A
primary tool used by public relations practitioners is publicity. Publicity capitalizes on the news
value of a product, service, idea, person or event so that the information can be disseminated
through the news media. This third party "endorsement" by the news media provides a vital boost
to the marketing communication message: credibility. Articles in the media are perceived as being
more objective than advertisements, and their messages are more likely to be absorbed and
believed. For example, after the CBS newsmagazine 60 Minutes reported in the early 1990s that
drinking moderate amounts of red wine could prevent heart attacks by lowering cholesterol, red
wine sales in the United States increased 50 percent. Another benefit publicity offers is that it is
free, not considering the great amount of effort it can require to get out-bound publicity noticed
and picked up by media sources.

26
Public relations' role in the promotional mix is becoming more important because of what Philip
Kotler describes as an "over communicated society." Consumers develop "communication-
avoidance routines" where they are likely to tune out commercial messages. As advertising loses
some of its cost-effectiveness, marketers are turning to news coverage, events, and community
programs to help disseminate their product and company messages. Some consumers may also
base their purchase decisions on the image of the company, for example, how environmentally
responsible the company is. In this regard, public relations plays an important role in presenting,
through news reports, sponsorships, "advertorials" (a form of advertising that instead of selling a
product or service promotes the company's views regarding current issues), and other forms of
communication, what the company stands for.

DIRECT MARKETING AND DATABASE MARKETING

DIRECT MARKETING.

Direct marketing, the oldest form of marketing, is the process of communicating directly with target
customers to encourage response by telephone, mail, electronic means, or personal visit. Users of
direct marketing include retailers, wholesalers, manufacturers, and service providers, and they use
a variety of methods including direct mail, telemarketing, direct-response advertising, online
computer shopping services, cable shopping networks, and infomercials. Traditionally not viewed as
an element in the promotional mix, direct marketing represents one of the most profound changes
in marketing and promotion in the last 25 years. Aspects of direct marketing, which includes direct
response advertising and direct mail advertising as well as the various research and support
activities necessary for their implementation, have been adopted by virtually all companies
engaged in marketing products, services, ideas, or persons.

Direct marketing has become an important part of many marketing communication programs for
three reasons. First, the number of two-income households has increased dramatically. About six in
every ten women in the United States work outside the home. This has reduced the amount of time
families have for shopping trips. Secondly, more shoppers than ever before rely on credit cards for
payment of goods and services. These cashless transactions make products easier and faster to
purchase. Finally, technological advances in telecommunications and computers allow consumers
to make purchases from their homes via telephone, television, or computer with ease and safety.
These three factors have dramatically altered the purchasing habits of American consumers and
made direct marketing a growing field worldwide.

Direct marketing allows a company to target more precisely a segment of customers and prospects
with a sales message tailored to their specific needs and characteristics. Unlike advertising and
public relations, whose connections to actual sales are tenuous or nebulous at best, direct
marketing offers accountability by providing tangible results. The economics of direct marketing
have also improved over the years as more information is gathered about customers and prospects.
By identifying those consumers they can serve more effectively and profitably, companies may be
more efficient in their marketing efforts. Whereas network television in the past offered

27
opportunities to reach huge groups of consumers at a low cost per thousand, direct marketing can
reach individual consumers and develop a relationship with each of them.

Research indicates that brands with strong brand equity are more successful in direct marketing
efforts than little-known brands. Direct marketing, then, works best when other marketing
communication such as traditional media advertising supports the direct marketing effort.

Direct marketing has its drawbacks also. Just as consumers built resistance to the persuasive nature
of advertising, so have they with direct marketing efforts. Direct marketers have responded by
being less sales oriented and more relationship oriented. Also, just as consumers grew weary of
advertising clutter, so have they with the direct marketing efforts. Consumers are bombarded with
mail, infomercials, and telemarketing pitches daily. Some direct marketers have responded by
regarding privacy as a customer service benefit. Direct marketers must also overcome consumer
mistrust of direct marketing efforts due to incidents of illegal behavior by companies and
individuals using direct marketing. The U.S. Postal Service, the Federal Trade Commission, and
other federal and state agencies may prosecute criminal acts. The industry then risks legislation
regulating the behavior of direct marketers if it is not successful in self-regulation. The Direct
Marketing Association, the leading trade organization for direct marketing, works with companies
and government agencies to initiate self-regulation. In March of 2003 the National Do Not Call
Registry went into affect whereby consumers added their names to a list that telemarketers had to
eliminate from their out-bound call database.

DATABASE MARKETING.

Database marketing is a form of direct marketing that attempts to gain and reinforce sales
transactions while at the same time being customer driven. Successful database marketing
continually updates lists of prospects and customers by identifying who they are, what they are like,
and what they are purchasing now or may be purchasing in the future. By using database
marketing, marketers can develop products and/or product packages to meet their customers'
needs or develop creative and media strategies that match their tastes, values, and lifestyles. Like
IMC, database marketing is viewed by many marketers as supplanting traditional marketing
strategies and is a major component of most IMC programs.

At the core of database marketing is the idea that market segments are constantly shifting and
changing. People who may be considered current customers, potential customers, and former
customers and people who are likely never to be customers are constantly changing. By identifying
these various segments and developing a working knowledge of their wants, needs, and
characteristics, marketers can reduce the cost of reaching non-prospects and build customer
loyalty. Perhaps the most important role of database marketing is its ability to retain customers.
The cumulative profit for a five-year loyal customer is between seven and eight times the first-year
profit.

Since database marketing is expensive to develop and complex to implement effectively, companies
considering database marketing should consider three important questions. First, do relatively
frequent purchasers or high dollar volume purchasers for the brand exist? Secondly, is the market

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diverse enough so that segmenting into subgroups would be beneficial? Finally, are there
customers that represent opportunities for higher volume purchases?

SALESPROMOTION/SPONSORSHIPS/ EXHIBITIONS
SALES PROMOTION.

Sales promotions are direct inducements that offer extra incentives to enhance or accelerate the
product's movement from producer to consumer. Sales promotions may be directed at the
consumer or the trade. Consumer promotions such as coupons, sampling, premiums, sweepstakes,
price packs (packs that offer greater quantity or lower cost than normal), low-cost financing deals,
and rebates are purchase incentives in that they induce product trial and encourage repurchase.
Consumer promotions may also include incentives to visit a retail establishment or request
additional information. Trade promotions include slotting allowances ("buying" shelf space in retail
stores), allowances for featuring the brand in retail advertising, display and merchandising
allowances, buying allowances (volume discounts and other volume-oriented incentives), bill back
allowances (pay-for-performance incentives), incentives to salespeople, and other tactics to
encourage retailers to carry the item and to push the brand.

Two perspectives may be found among marketers regarding sales promotion. First, sales promotion
is supplemental to advertising in that it binds the role of advertising with personal selling. This view
regards sales promotion as a minor player in the marketing communication program. A second view
regards sales promotion and advertising as distinct functions with objectives and strategies very
different from each other. Sales promotion in this sense is equal to or even more important than
advertising. Some companies allocate as much as 75 percent of their advertising/promotion dollars
to sales promotion and just 25 percent to advertising. Finding the right balance is often a difficult
task. The main purpose of sales promotion is to spur action. Advertising sets up the deal by
developing a brand reputation and building market value. Sales promotion helps close the deal by
providing incentives that build market volume.

Sales promotions can motivate customers to select a particular brand, especially when brands
appear to be equal, and they can produce more immediate and measurable results than
advertising. However, too heavy a reliance on sales promotions results in "deal-prone" consumers
with little brand loyalty and too much price sensitivity. Sales promotions can also force competitors
to offer similar inducements, with sales and profits suffering for everyone.

SPONSORSHIPS.

Sponsorships, or event marketing, combine advertising and sales promotions with public relations.
Sponsorships increase awareness of a company or product, build loyalty with a specific target
audience, help differentiate a product from its competitors, provide merchandising opportunities,
demonstrate commitment to a community or ethnic group, or impact the bottom line. Like
advertising, sponsorships are initiated to build long-term associations. Organizations sometimes
compare sponsorships with advertising by using gross impressions or cost-per-thousand

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measurements. However, the value of sponsorships can be very difficult to measure. Companies
considering sponsorships should consider the short-term public relations value of sponsorships and
the long-term goals of the organization. Sports sponsorships make up about two-thirds of all
sponsorships.

EXHIBITS

Exhibits, or trade shows, are hybrid forms of promotion between business-to-business advertising
and personal selling. Trade shows provide opportunities for face-to-face contact with prospects,
enable new companies to create a viable customer base in a short period of time, and allow small
and midsize companies that may not be visited on a regular basis by salespeople to become familiar
with suppliers and vendors. Because many trade shows generate media attention, they have also
become popular venues for introducing new products and providing a stage for executives to gain
visibility.

PERSONAL SELLING

Personal selling includes all person-to-person contact with customers with the purpose of
introducing the product to the customer, convincing him or her of the product's value, and closing
the sale. The role of personal selling varies from organization to organization, depending on the
nature and size of the company, the industry, and the products or services it is marketing. Many
marketing executives realize that both sales and non-sales employees act as salespeople for their
organization in one way or another. One study that perhaps supports this contention found that
marketing executives predicted greater emphasis being placed on sales management and personal
selling in their organization than on any other promotional mix element. These organizations have
launched training sessions that show employees how they act as salespeople for the organization
and how they can improve their interpersonal skills with clients, customers, and prospects.
Employee reward programs now reward employees for their efforts in this regard.

Personal selling is the most effective way to make a sale because of the interpersonal
communication between the salesperson and the prospect. Messages can be tailored to particular
situations, immediate feedback can be processed, and message strategies can be changed to
accommodate the feedback. However, personal selling is the most expensive way to make a sale,
with the average cost per sales call ranging from $235 to $332 and the average number of sales
calls needed to close a deal being between three and six personal calls.

Sales and marketing management classifies salespersons into one of three groups: creative selling,
order taking, and missionary sales reps. Creative selling jobs require the most skills and preparation.
They are the "point person" for the sales function. They prospect for customers, analyze situations,
determine how their company can satisfy wants and needs of prospects, and, most importantly, get
an order. Order takers take over after the initial order is received. They handle repeat purchases
(straight rebuys) and modified rebuys. Missionary sales reps service accounts by introducing new
products, promotions, and other programs. Orders are taken by order takers or by distributors.

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INTERNET MARKETING

Just as direct marketing has become a prominent player in the promotional mix, so too has the
Internet. Virtually unheard of in the 1980s, the 1990s saw this new medium explode onto the
scene, being adopted by families, businesses and other organizations more quickly than any other
medium in history. Web sites provide a new way of transmitting information, entertainment, and
advertising, and have generated a new dimension in marketing: electronic commerce. E-commerce
is the term used to describe the act of selling goods and services over the Internet. In other words,
the Internet has become more that a communication channel; it is a marketing channel itself with
companies such as Amazon.com, CDNow, eBay, and others selling goods via the Internet to
individuals around the globe. In less than 10 years advertising expenditures on the Internet will rival
those for radio and outdoor. Public relations practitioners realize the value that web sites offer in
establishing and maintaining relationships with important publics. For example, company and
product information can be posted on the company's site for news reporters researching stories
and for current and potential customers seeking information. Political candidates have web sites
that provide information about their background and their political experience.

The interactivity of the Internet is perhaps its greatest asset. By communicating with customers,
prospects, and others one-on-one, firms can build databases that help them meet specific needs of
individuals, thus building a loyal customer base. Because the cost of entry is negligible, the Internet
is cluttered with web sites. However, this clutter does not present the same kind of problem that
advertising clutter does. Advertising and most other forms of promotion assume a passive audience
that will be exposed to marketing communication messages via the mass media or mail regardless
of their receptivity. Web sites require audiences who are active in the information-seeking process
to purposely visit the site. Therefore, the quality and freshness of content is vital for the success of
the web site.

THE FUTURE OF MARKETING COMMUNICATION

Marketing communication has become an integral part of the social and economic system in the
United States. Consumers rely on the information from marketing communication to make wise
purchase decisions. Businesses, ranging from multinational corporations to small retailers, depend
on marketing communication to sell their goods and services. Marketing communication has also
become an important player in the life of a business. Marketing communication helps move
products, services, and ideas from manufacturers to end users and builds and maintains
relationships with customers, prospects, and other important stakeholders in the company.
Advertising and sales promotion will continue to play important roles in marketing communication
mix. However, marketing strategies that stress relationship building in addition to producing sales
will force marketers to consider all the elements in the marketing communication mix. In the future
new information gathering techniques will help marketers target more precisely customers and
prospects using direct marketing strategies. New media technologies will provide businesses and
consumers new ways to establish and reinforce relationships that are important for the success of
the firm and important for consumers as they make purchase decisions. The Internet will become a

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major force in how organizations communicate with a variety of constituents, customers, clients,
and other interested parties.

Integrated Marketing Communications are messages and related media used to communicate with
a market. Those who practice advertising, branding, direct marketing, graphic design, marketing,
packaging, promotion, publicity, sponsorship, public relations, sales, sales promotion and online
marketing are termed marketing communicators, marketing communication managers.

Traditionally, marketing communication practitioners focus on the creation and execution of

printed marketing collateral; however, academic and professional research developed the practice
to use strategic elements of branding and marketing in order to ensure consistency of message
delivery throughout an organization - the same "look & feel". Many trends in business can be
attributed to marketing communication; for example: the transition from customer service to
customer relations, and the transition from human resources to human solutions and the trends to
blogs, email, and other online communication derived from an elevator pitch.

In branding, every opportunity to impress the organization's (or individual's) brand upon the
customer is called a brand touch point (or brand contact point.) Examples include everything from
TV and other media advertisements, event sponsorships, webinars, and personal selling to even
product packaging. Thus, every experiential opportunity that an organization creates for its
stakeholders or customers is a brand touch point. Hence, it is vitally important for brand strategists
and managers to survey all of their organization's brand touch points and control for the
stakeholder's or customer's experience. Marketing communication, as a vehicle of an organization's
brand management, is concerned with the promotion of an organization's brand, product(s) and/or
service(s) to stakeholders and prospective customers through these touch points. Marketing
communications is focused on product/produce/service as opposed to corporate communications
where the focus of communications work is the company/enterprise itself. Marketing
communications is primarily concerned with demand generation, product/produce/service
positioning while corporate communications deal with issue management, mergers and
acquisitions, litigation etc.

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 PR advertising can be either online or offline like ads in newspapers, magazines, television and
radio.

Modern Advertising Methods

Theater Advertising

Theater advertising has used a modern advertising method for decades when advertising
concession stand products. These ads run before the movie starts and at intermission to get people
to buy drinks, candy and popcorn immediately.

Theater advertising doesn’t work as effectively for other businesses because it’s impossible to get
people to take immediate action. However if the ad on the screen is accompanied by a printed
promotion like a coupon, it can work as a modern advertising method.

For example, many people eat out after a movie. So a restaurant advertising a discount to movie-
goers can encourage an immediate action. This requires that theater employees hand out a coupon
or a promotional flyer that movie-goers can take to the restaurant for the discount.

Advantages And Disadvantages Of Advertising Agencies

The major advantages and disadvantages of advertising agencies are:

Advantages
o Specialized expertise,
o Team collaboration between experts,
o Time saving.
Disadvantages
o Cost,
o Lack of knowledge about your business,
o Agency/customer relationships.

Three Advantages Of Advertising Agencies

The advantages of advertising agencies base on expertise or time.
Specialized Expertise

As a business owner, your expertise is likely in your product or service area rather than in
marketing, or some aspects of marketing like advertising. Plus there are so many aspects to
marketing that no one person can be an expert in all of them.

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You’ll find more advertising expertise in an advertising agency than in a marketing agency. So the
first advantage of advertising agencies is the depth of expertise provided in advertising. A large
advertising agency will have experts as account executives, researchers, media buyers, creatives,
and more.

Smaller agencies frequently concentrate on one area of expertise. For example, some advertising
agencies concentrate on just online advertising.

Team Collaboration Between Experts

Another major advantage of advertising agencies is that many of these experts work together on
your advertising campaign. You’ll  likely have at least an account executive, media buyer, and
creative content person working on your advertising.

So not only does each bring more expertise to your campaign than you can. But together their
combined expertise brings more to  your campaign than any one of them alone could.

Time Saving

Besides applying all this expertise to your advertising campaign, these experts all spend time on
your campaign. So that’s time you don’t have to spend.

Even if you are an advertising expert, is doing your own advertising the best use of your time? If
your not an advertising expert, doesn’t it make more sense for you to spend your limited time on
what you do best?

Three Disadvantages Of Advertising Agencies

The first disadvantage, cost, is the flip side of the same coin as the last advantage, time saving.

Cost

You have to pay for the time and expertise of the agency’s personnel.

Earning expertise in each area of advertising requires a college degree and practical experience.
Some employees also get advanced training.

Even new college grads usually have at least a half to a year’s internship, often unpaid internships. 
So they’ve invested a lot of time and money to earn their expertise.

Naturally their time isn’t cheap. When you add the agency’s overhead and profit, their time
charged to you can get expensive.

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 Knowledge About Your Business

Another disadvantage of advertising agencies is that, even with all their expertise, they don’t know
your business as well as you do. You are the expert on your business. So you have to educate them
quickly if you want to get a good advertising campaign.

The more they know about your business, the more effective your advertising campaign will be. If
you don’t want to pay them for the time to learn your business, you need to provide them your
business information in a brief report.

This report should include your mission, your target market, your product or service, its
distinguishing characteristic, and an overview of your past advertising efforts.

Agency/Customer Relationships

Besides the report on your business, you also need to make clear:

o your expectations of the advertising agency personnel,

o your objectives and goals for the advertising campaign,
o the return on advertising investment you expect, and/or
o other ways you will evaluate the campaigns effectiveness.

Failing to clarify these expectations is the major cause of poor agency/client relationships.

Conclusion

You have to weigh the advantages and disadvantages of advertising agencies in light of your time
and money. The more time you spend:

o the less the advertising campaign will cost you,

o the better your relationship with agency personnel will be, and
o the more effective the campaign will be.

Sometimes paying more to have an advertising agency manage your campaign for you
increases your return on advertisement investment. When you do it yourself, you have to calculate
what that time is worth to you concentrating on other parts of your business.

For many small businesses, budgets only enable internally designed and implemented campaigns.
Only you can decide how to balance your time and money against the advantages and
disadvantages of advertising agencies.

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Using Different Types Of Mass Media For Target Marketing

Using different types of mass media for target marketing may seem contradictory. After all mass
media equal mass marketing, not target marketing.
Yes, mass media reach large general audiences. So they aren’t the best way to reach your target
market.

Different Types Of Mass Media: Newspapers

Most national, regional and larger state newspapers offer sections that target people with different
interests. Business, sports, life styles, health and other sections in such large newspapers enable
you to target specific markets interested in these topics.

For example, if you are targeting small business owners, you can write news releases or buy
advertisements in the business section.

Newspapers provide a great way to market to a geographic area. For example, I grew up in a small
town – Sallisaw, Oklahoma. The local newspaper was the best way to learn about what was
happening there, including what local businesses had on sale or promotion.

Today many special interest and professional organizations produce newspapers for their members
and supporters. Advertising or publishing press releases in these newspapers can efficiently reach
your target market. It’s just a matter of finding the best match between your target market and the
newspaper’s readers.

Different Types Of Mass Media: Magazines

Although magazines as a media started as national publications, today many magazines serve a
small target market. And that’s just the commercial magazines.

Many magazines today are produced by businesses as a public relations or marketing tactic, or by
organizations to serve their members and supporters.

So magazines are not all mass media, and even those that are, now focus on more narrow
audiences. So you can find a magazine to reach almost any target market.

Plus the longevity of magazines is far longer than that of newspapers. Just notice the magazines in
doctor’s offices. I frequently pick up one and notice that it’s more than a year old. It’s been setting
in that doctor’s office month and month, with patients seeing it nearly every day.

So a news story or advertisement in a magazine can continue to pull in customers for months after
the magazines publication. You’ll need to extend promotions and sales to be effective long after the
magazine’s publication.

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Different Types Of Mass Media: Television

As one of the most expensive places to advertise, television is the hardest to use for target
marketing. However, with the growth of channels, television offers some of the targeting ability of
newspapers and magazines, but channels and programs targeted to people with a specific interest
still reach the masses.

For example, suppose you are a finish carpenter and you want to reach local homeowners to
advertise your services. A local television advertisement on the Home and Garden Channel (HGTV)
primarily reaches homeowners.

Still some homeowners are more concerned with landscaping than interior design, and some want
all construction and design to be environmentally safe, or as they call it in that industry, “green”.

A local advertisement will reach homeowners not exactly in your target market, but the extra
people reached with your television advertisement are more likely to be potential customers for
your carpentry service than would be SciFi watches.

Different Types Of Mass Media: Radio

Radio has become one of the most segmented of all the different types of mass media. This
segmentation is primarily by music preferences, but it also includes talk radio and news programs
that cater to people with specific interests.

If you’ve done your market segmentation research and know the music preferences of your target
market, you can reach your target market by advertising on radio. Most radio salespeople can
provide demographics and other characteristics of their audiences.

This information is usually gathered and compiled by research companies who specialize in
audience analysis. Because they don’t work for the stations, you can safely rely on the results from
these research companies.

Pick the stations whose audience is most like yours and advertise on a program that has an even
larger proportion of its audience from your target market. Then create ads that use all the
information you know about your target market.

Different Types Of Mass Media: Billboard

You may not think of billboards when you think mass media, but you can use billboards to get
marketing messages to your target market.

You need to know the types of drivers who drive by the billboard location. If you plan a campaign of
billboards, you’ll need this information for every location.

Billboard salespeople can also provide you with some of this information, but I’d trust it less than
the audience analysis by third-party research companies.

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People don’t drive a certain route because they like the billboards. They drive them because they
provide an efficient way of getting from one spot to the next, for instance, from home to work.
Then they passively notice the billboards along the way.

Some segmentation can be done by route. For example, the route to a city’s major mall, will be
traveled by people who work in the mall and by shoppers at the mall.

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