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BATCH 2017 – 2019 / II YEAR MBA / III SEMESTER – BA5004 IMC QB & STUDY MATERIAL

JEPPIAAR ENGINEERING COLLEGE

DEPARTMENT OF MANAGEMENT STUDIES


BATCH 2017 – 2019
I YEAR / II SEMESTER

BA5004: INTEGRATED MARKETING COMMUNICATION

Faculty In charge
Dr. R. AKILA

Anna University Chennai


Regulation 2017

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BATCH 2017 – 2019 / II YEAR MBA / III SEMESTER – BA5004 IMC QB & STUDY MATERIAL

TABLE OF CONTENTS

S.No Particulars Pg No
1 COLLEGE- Mission/ Vision 3
2 MBA - Mission/ Vision 3
PEO’S 4
PO’S 4
3 SYLLABUS OF THE SUBJECT 5
4 LESSON PLAN OF THE SUBJECT 6
STUDY MATERIAL
UNIT I - Material 7
UNIT II - Material 19
UNIT III - Material 33
UNIT IV - Material 57
UNIT V - Material 62
5 QUESTIONS BNAK UNITWISE 89
PART –A (30 questions with answer) / PART (10 questions from the
unit) with page number from the question bank.
6 PREVIOUS YEAR UNIVERSITY QUESTION 116

JEPPIAAR ENGINEERING COLLEGE (MBA)


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VISION

Jeppiaar Engineering College intent to be a leading, comprehensive school of


management, furthering our global reputation for educational experiences that make a
difference in the lives of our students. Through our actions and accomplishments, we will
inspire pride among the diverse members of our community. We will be renowned for adding
value and engaged service. We continue the upward increase in rankings and scholarly
productivity.

MISSION
 To provide management education to all groups in the community.
 To practice management through scholarly research and education.
 To advance the practice of management within a global context,
 To provide management education to advance professional and community service.

JEPPIAAR ENGINEERING COLLEGE [MBA]


DEPARTMENT OF MANAGEMENT STUDIES

VISION
To build Jeppiaar Engineering College [MBA] as an institution of academic
excellence in management education, leading to become a world class university.

MISSION
 To excel in teaching and learning, research and innovation by promoting the
principles of scientific analysis and creative thinking.
 To participate in the production, development and dissemination of knowledge
and interact with national and international communities.
 To equip students with values, ethics and life skills needed to enrich their lives
and enable them to contribute for the progress of society.
 To prepare students for higher studies and lifelong learning, enrich them with the
practical skills necessary to excel as future professionals and entrepreneurs for the
benefit of Nation’s economy.

PROGRAMME EDUCATIONAL OBJECTIVES (PEOs):


 To have a thorough understanding of the core aspects of the business

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 To provide the learners with the management tools to identify, analyze and create
business opportunities as well as solve business problems.
 To inspire and make them practice ethical standards in business.

PROGRAMME OUTCOMES (POs)

1. Ability to apply the business acumen gained in practice.


2. Ability to understand and solve managerial issues.
3. Ability to communicate and negotiate effectively, to achieve organizational and individual
goals.
4. Ability to upgrade their professional and managerial skills in their workplace.
5. Ability to explore and reflect about managerial challenges, develop informed managerial
decisions in a dynamically unstable environment.
6. Ability to take up challenging assignments.
7. Ability to understand one’s own ability to set achievable targets and complete them.
8. Ability to pursue lifelong learning.
9. To have a fulfilling business career.

COURSE OBJECTIVE:
 This course introduces students to the basic concepts of advertising and sales promotion and
how business organizations and other institutions carry out such activities.

COURSE OUTCOME :
 Insight into the importance of advertising and sales promotion campaigns planning and
objective setting in relation to consumer decision making processes.

CO -PO Matrix

PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9


Co1 3 - 2 - 3 - - - 3

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BATCH 2017 – 2019 / II YEAR MBA / III SEMESTER – BA5004 IMC QB & STUDY MATERIAL

BA5004 INTEGRATED MARKETING COMMUNICATION

UNIT – I INTRODUCTION TO ADVERTISEMENT 9


Concept and definition of advertisement – Social, Economic and Legal Implications of
advertisements – setting advertisement objectives – Ad. Agencies – Selection and remuneration
– Advertisement campaigns – case studies.

UNIT – II ADVERTISEMENT MEDIA 9


Media plan – Type and choice criteria – Reach and frequency of advertisements – Cost of
advertisements - related to sales – Media strategy and scheduling. design and execution of
advertisements -Message development – Different types of advertisements – Layout – Design appeal
– Copy structure – Advertisement production – Print – Radio. T.V. and Web advertisements
– Media Research – Testing validity and Reliability of ads – Measuring impact of advertisements –
case studies.

UNIT – III SALES PROMOTION 9


Scope and role of sale promotion – Definition – Objectives of sales promotion - sales promotion
techniques – Trade oriented and consumer oriented. Sales promotion – Requirement identification –
Designing of sales promotion campaign – Involvement of salesmen and dealers – Out sourcing sales
promotion national and international promotion strategies – Integrated promotion – Coordination
within the various promotion techniques – Online sales promotions- case studies.

UNIT – IV PUBLIC RELATIONS 9


Introduction – Meaning – Objectives –Scope-Functions-integrating PR in to Promotional Mix-
Marketing Public Relation function- Process of Public Relations-advantages and disadvantages of PR-
Measuring the Effectiveness of PR- PR tools and techniques. PR and Media Relations, - PR
consultancy: Pros and Cons. - Discussion on opinion survey of PR in Public and Private Enterprises.
PR- Research, Evaluation, Counseling-Marketing Public Relations (MPR)-Structure of Public
Relations Department. Budgeting of PR. PR Agencies.

UNIT – V PUBLICITY 9
Introduction – Meaning – Objectives - Tools – Goals of Publicity – Scope of Publicity – Importance
of Publicity – Difference between Marketing, PR and Publicity - Social publicity – Web Publicity and
Social media – Publicity Campaigns
TOTAL:45
PERIODS
TEXT BOOKS
1. George E Belch and Michel A Belch, Advertising & Promotion, Tata McGraw Hill, 10th edition,
2014
2. Wells, Moriarty & Burnett, Advertising, Principles & Practice, Pearson Education, 7th Edition,
2007.
3. Kenneth Clow. Donald Baack, Integrated Advertisements, Promotion and Marketing
communication, Prentice Hall of India, New Delhi, 3rd Edition, 2006.
4. Terence A. Shimp and J.Craig Andrews, Advertising Promotion and other aspects of Integrated
Marketing Communications, CENGAGE Learning, 9th edition, 2016
5. S. H. H. Kazmi and Satish K Batra, Advertising & Sales Promotion, Excel Books, New Delhi, 3rd
Revised edition edition, 2008.
6. Julian Cummings, Sales Promotion: How to Create, Implement and Integrate Campaigns that
Really Work, Kogan Page, London, Fifth Edition Edition ,2010.
7. Jaishri Jefhwaney, Advertising Management, Oxford University Press, 2nd Edition, 2013.

BA5004 INTEGRATED MARKETING COMMUNICATION


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LESSON PLAN

No Of
Units Topic Books Referred
Hours

George E Belch and Michel A


Belch, Advertising & Promotion,
Concept and definition of advertisement – Social, Tata McGraw Hill, 10th edition,
Economic and Legal Implications of advertisements – 2014
UNIT I setting advertisement objectives – Ad. Agencies – 9
Selection and remuneration – Advertisement S. H. H. Kazmi and Satish K
campaigns – case studies. Batra, Advertising & Sales
Promotion, Excel Books, New
Delhi, 3rd Revised edition
edition, 2008.
Media plan – Type and choice criteria – Reach and George E Belch and Michel A
frequency of advertisements – Cost of advertisements Belch, Advertising & Promotion,
- related to sales – Media strategy and scheduling. Tata McGraw Hill, 10th edition,
design and execution of advertisements -Message 2014
development – Different types of advertisements – S. H. H. Kazmi and Satish K
UNIT II 9
Layout – Design appeal – Copy structure – Batra, Advertising & Sales
Advertisement production – Print – Radio. T.V. and Promotion, Excel Books, New
Web advertisements Delhi, 3rd Revised edition
– Media Research – Testing validity and Reliability of edition, 2008.
ads – Measuring impact of advertisements – case
studies.
Scope and role of sale promotion – Definition –
Objectives of sales promotion - sales promotion
techniques – Trade oriented and consumer oriented. George E Belch and Michel A
Sales promotion – Requirement identification – Belch, Advertising & Promotion,
UNIT III Designing of sales promotion campaign – 9 Tata McGraw Hill, 10th edition,
Involvement of salesmen and dealers – Out sourcing 2014
sales promotion national and international promotion
strategies – Integrated promotion – Coordination
within the various promotion techniques – Online
sales promotions- case studies.
Introduction – Meaning – Objectives –Scope-
Functions-integrating PR in to Promotional Mix-
Marketing Public Relation function- Process of Public
George E Belch and Michel A
Relations-advantages and disadvantages of PR-
Belch, Advertising & Promotion,
Measuring the Effectiveness of PR- PR tools and
UNIT IV 9 Tata McGraw Hill, 10th edition,
techniques. PR and Media Relations, - PR
2014
consultancy: Pros and Cons. - Discussion on opinion
survey of PR in Public and Private Enterprises. PR-
Research, Evaluation, Counseling-Marketing Public
Realtions (MPR)-Structure of Public Relations
Department. Budgeting of PR. PR Agencies.
Introduction – Meaning – Objectives - Tools – Goals
George E Belch and Michel A
of Publicity – Scope of Publicity – Importance of
Belch, Advertising & Promotion,
Publicity – Difference between Marketing, PR and
UNIT –V 9 Tata McGraw Hill, 10th edition,
Publicity - Social publicity – Web Publicity and Social
2014
media – Publicity Campaigns

UNIT – I
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1.1 Definition:

“Advertising is the non - personal communication of information usually persuasive in


nature about products, services or ideas by identified sponsors through the various
media” (Bovee 1992)

Communication
Means through which one person can pass information, ideas or feelings to another through
speech or pictures. Though, communication uses all senses like smell, touch, taste, sound &
sight, only two are useful in advertising i.e. Sound & Sight Sound: Radio, Television —
micro-sound chips in magazines. Sight: The most useful medium of communication like
print, i.e. “A picture is worth a thousand words”

Information
Information is knowledge, fact or news. It comes in different forms: Complete or Incomplete!
Biased or deceptive! what it is? What it looks like? How it works? What are its benefits
&drawbacks etc?

Paid For
If an advertisement is created, placed in the media so the cost to create and time or space in
the media must be paid for. This is the point, where advertising departs from Public
Relations.

Persuasive
Purpose of advertisement is to Identify & differentiate one product from another and to
persuade the customer for preferring one to another.

Products, Services or Ideas


Things advertiser wants consumers to buy. There are three basic differentiations in products
1. Perceptible – Obviously different from other-like color, size, shape etc.
2. Imperceptible – Those which exist but are not obvious.
3. Induced. – No obvious difference but inform people about the difference

Identified Sponsors
Telling audience about the sponsors

Various Media
Like Newspapers, Magazines, Radio, TV, Billboards, hoardings, balloons… So “anything
which is used to communicate ideas from one person to another in non personal-way.”

1.2 HISTORY OF ADVERTISING

1704 1st newspaper ad, seeking buyer for an Oyster Bay was published.
1843 1st Ad. Agency set up in Philadelphia
1882 Advertising of a soap brand was done with a huge budget of 11000 US$.
1893 A famous beverage brand was registered as a trade mark.
1899 J. Walters: 1st agency opens an office in U.K.
1923 1st entertainment program was sponsored by an advertiser.
1947 J .Walter Thompson 1st agency to cross 100Mil $ in billing.
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1976 Indian commercial TV launched.


1978 1st TV commercial is launched.
1990 A new Medium Internet is born.
1993 5 million internet users get on line.
1999 Internet advertising breaks 2 Billion US$ mark
2003 TV show with built in advertising is planned.

ADVANTAGES

• Advertising is every where.


• Advertiser may not see individual consumer yet has research (knowledge) about the
consumer.
• Advertising can be far cheaper per potential customer than personal selling.

1.3 FUNCTIONS OF ADVERTISING

Advertising is one tool which can help a company to achieve goals. It is not the end, but a
means to reach the end. The functions of Advertising depend upon six Advertising objectives
1. To make product distinct from others.
2. To communicate information.
3. To push the customers.
4. To expand distribution.
5. To encourage brand preference.
6. To reduce sales cost.

1.4 ROLE OF ADVERTISING


• Acquire enhanced volumes of sales of products & services.
• Generate awareness about offerings.
• Induce trial of a new product & service.
• Motivate & impress trade channels.
• Change perception & create reassurance.
• Acquire enhanced volumes of sales of products & services.
• Generate awareness about offerings.
• Induce trial of a new product & service.
• Motivate & impress trade channels.
• Change perception & create reassurance.
• Acquire enhanced volumes of sales of products & services.
• Generate awareness about offerings.
• Induce trial of a new product & service.
• Motivate & impress trade channels.
• Change perception & create reassurance.

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1.5 MODELS OF ADVERTISEMENT

a) ADVERTISING RESPONSE HIERARCHY MODELS

Advertising has become a very demanding profession in this now very competitive world. In
this lecture we will explain various models to judge the response to various efforts. Besides
this we will also explain about advertising themes and the process required to get or develop
a unique and big idea along with key points for developing an advertising campaign..

ADVERTISING REPONSE HIERARCHY MODELS


4 response hierarchy models:
1. The AIDA model.
2. Hierarchy of effects model.
3. Innovation-adoption model.
4. Information processing model.

b) AIDA model
The AIDA model Developed by E. K. Strong basically means draw / attract attention
Be interesting - Create desire - Initiate action

A I D A stands for:
A for Attention
I for Interest
D for Desire
A for Action

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BATCH 2017 – 2019 / II YEAR MBA / III SEMESTER – BA5004 IMC QB & STUDY MATERIAL

c) Hierarchy of effects model.

d) Innovation-adoption model.

e) Information processing model.

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1.6 SOCIAL, ETHICAL, AND ECONOMIC ASPECTS OF ADVERTISING

PRACTICAL BENEFITS:

Economic Benefits:
Generation of new jobs – Higher Incomes, comfortable & humane way of living.
Political benefits:
Significant contribution for informing people about candidates & the party etc.
Cultural Benefits:
Contributes positively in decisions about media content for betterment in society
Moral & Religious Benefits:
faith messages etc.

SOCIAL IMPACT OF ADVERTISING


Deception in Advertising
The Subliminal Advertising Myth
The Effect of Advertising on Our Value System
The Proliferation of Advertising
The Use of Stereotypes in Advertising
Offensiveness in Advertising

ECONOMIC IMPACT OF ADVERTISING


Effect on the Value of Products
Effect on Prices
Effect on Competition
Effect on Consumer Demand
Effect on Consumer Choice
Effect on the Business Cycle
The Abundance Principle

IMPACT OF ADVERTISEMENTS ON CHILDREN


Children are impressionable so: advertiser should ----
• Take into account knowledge & maturity level of target audience
• Not exploit imaginative quality of children.
• Communicate information accurately & truthfully.
• Use advertising to influence social behavior in a positive way.
• Contribute to parent - child relationship in a constructive way.

1.7 IMPACT OF ADVERTISEMENTS ON WOMEN


She is at the centre of all advertisements in almost all media. Woman is an embodiment of
tradition & practically no ad is complete if emotional appeal is underscored without a woman
as she plays a pivotal role in the family. Woman is used to grab attention and stimulate desire
which advertiser wants to transform to product.

1.8 ETHICS IN ADVERTISING


Why Ethics?
� PUFFERY – Exaggerated, fantastical or impossible claims. e.g. a cosmetic ad. says
“There are only 3 steps between you and the beauty.”
� SHOCK ADS. – Trying to captivate audience by shocking message e.g. “Death
Cigarettes”.
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� WEASEL CLAIM – Where a probable claim is shown e.g. “probably the best show of the
year.” Here word ‘probably’ is weasel. Or e.g. ABC medicine “helps” stop gas before it
starts” here the word ‘help’ is weasel.

CODE OF ETHICS IN ADVERTISING


• Advertisements will not offend morality, decency and religious views / beliefs of the
viewers.
• Should not be directed towards any religious or political end.
• Should not endanger safety of children or create in them any interest in unhealthy practices.
• Indecent, vulgar, suggestive, repulsive or offensive treatment of themes shall be avoided.

1.9 ADVERTISING AGENCIES

“An advertising agent or an advertising agency is an independent Company rendering


specialized services in advertising in particular and marketing in general”

“An independent organisation of creative and business people who specialise in the
development and preparation of advertising plans, advertisement and other promotional tools
and arrange for the purchase of advertising space and time in the various media”

Primary Services

Complete A Marketing Analysis


Develop An Advertising Plan
Prepare A Creative Strategy
Create Advertising Executions
Develop And Implement A Media Plan
Handle Billing And Payments
Integrate Other Marketing Communications

Functioning of Various Departments of an Advertising Agency

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1. Contact Department. Creation, sustaining an extension are the three basic functions
of the department. It gets new business and tires to continue the existing business.
Accounts Executive of the departments is the key man who acts as a liaison between
the agency on the one hand and the clients on the other.

2. Media Department. After making the advertisement plan, the agency selects the best
possible medium. It is choosing the channels o communication trough which to
distribute the advertising. The media analyst and estimators decide the approximate
kind and number of potential customers and then to choose the media that get the
message to them.

3. Copy Department. The copy director coordinates the work of writing the copy with
the assistance of copy chief and copy writer. The advertisement copy is the heart of
advertising programme as it contains the message. Copy writing requires imagination,
flair and fluency in the language and then to choose the media that copy is the
outcome of his interest, mood and ability.

4. Art and Visualization Department. The art director heads this department. He is
assisted by artists, lay-out men and visualizers. Art director gets prepared visuals and
lay-outs for press advertisements, posters, calendars, printed bulletins, car cards and
other out door pieces. Some agencies hire the outside artiste. There should be close
cooperation between the department of art and copy as they supplement the work of
each other.

5. Production Department. When a copy is ready the agency proceeds to its


mechanical production, agencies generally use out side units for these production
services. The production manager as to move to the typographers or type setters to
have copy set in type, later to the photoengraver for the illustrations. Finally he moves
to the electro-typer for electro-types mats or other duplicate material in such qualities
as needed.

6. Finance Department. The accountants are responsible to maintain accounts, billing


and collecting the dues from the customers. The checking section verifies the
production and publicity of each individual case, may be press medium or outdoor or
radio or television or cinema etc. The aim is to see that such publicity is really helping
the advertiser. It is interested in realizing the goals of publishing whether the
advertisement is to day or after a couple of days or a week or a month.

7. Research Department. This section of the advertising agency is engaged in the study
of h effects of sales activities at the end of the point f distribution of a particular
product. Sometimes outside research organizations are employed to carry on such
research as they are more economical and reliable. The Research director takes the
assistance of analyst, investigators, marketing assistants clerks and librarians. All
these persons are trained in research work and are in a position to evaluate the
information relating to the product.

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8. Public Relations Department. The birth, growth and survival of an advertising


agency depend very much on the public opinions, support and feelings it sis public
opinion that decides the destiny of the enterprises. The department establishes an
maintains mutual understanding between the organisation an the public. Public
relations approach is the product of publicists an advertising men. The department is
headed by the Public relations Director who a to struggle hard to have always high
opinion about the firm. Once the image is lost the whole business comes to a
standstill.

1.10 PURPOSE OF ADVERTISING AGENCIES


• Advice & counsel on marketing strategy.
• Advice & counsel on advertising and media strategy.
• Prepare & develop, print, outdoor, and electronic advertisement.
• Carry out collateral designs of various items such as display material & other display
Material.
• Help & counsel on sales promotion & other communication tasks.

Organizational Chart of Ad Agencies

1. Timely and Satisfactory work. Agency is highly specialized in the field of publicity.
It has wider contacts with media owners that facilitates the entering of contacts both
for space and time. It employs experts and veterans in the field of advertising like

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photographers, lithographers, block makers, painters, artists, painters, actors singers,


announcers who re fully and timely tapped by the agency director. With such ready
made and deliberate facilities, the quality of advertisement improves to a greater
extent and guarantees timely presentations.

2. Advertiser is freed and given the Benefit of economy. Advertising agency is


really a boon, especially, for the small and medium sized units because neither they
are in a position to meet all the expenses of securing space or time nor, they can
undertake the work which is ticklish and bothersome. The advertising programme is
designed at economical terms by the agents with all the benefits of care freeness.

3. Sound appropriation of Funds. Agency being the proof of expert is fully aware of
the cost of each media: as such it is able to allocate the available funds on various
items in publicity budgets. This results into net resource allowance allocation and
utilisation. Thus the common advertiser may misapply the funds to his disadvantage
due to the lack of through knowledge. Where as agency does it most appropriately in
pragmatic way to have best results.

4. Conducting Market Research. Research is accepted as one of its functions. Research


dilemma is the greatest when eh agency first takes new care of advertising were it is urgent
to get fully acquainted wit the client's past history, present needs and future potentials.
Market research work involving study of product and people an methods of marketing will be
done at economical rates as full time seasoned staff is available. The research departments is
well equipped with collection, analysis and interpretations of the market data.

Evaluation of the Advertising Agency

There are some options of Evaluation of the Advertising Agency

(i) Space Broker Stage. About 1840 several people worked as sales representative. They acted
as simple agents to sell space in newspapers on commission basis. But after sometime they
used to take full pages and sold position of it to whatever price they would get from
advertisers. This was known as 'Space broker Stage' in modern advertising agency system.
Thus price cut was seen from advertisers. There was inefficiency in business.

(ii) Standard Service Stage. The agent bought the space by 1876 an got it on printed rates of
the newspapers. Thus the agent was not the seller of space buy became buyer for them from
the newspapers. They charged the advertisers for copy writing, art work, layout, media
selection and research. By 1900 advertising agencies evolved. It began to solve clients
problems. They contracted the magazines. The recognised agencies were given commission by
the newspapers. Advertisers were not allowed to put direct advertising to papers.

(iii) Marketing Agencies Stage. Advertising agencies grew with the industrial expansion.
About 1958 agencies gave different and highly skilled services to the clients and it was highly

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used in marketing mix. Thus advertising agencies entered the marketing service stage and
hence forth we got full service agency system.

Agency Commissions

media commission system


 15% media commission
adjustable commission rates
 negotiate to match client budget
 sliding scale
markups-production & service
 add a percentage markup to costs
 17.65% of net = 15% of gross
Types Of Fee Systems

fixed fee (retainer)


cost-plus fee
performance fee
commission fee
Incentives

Most scientific way to pay an agency.


Agency is rewarded on the basis of the results it achieve for the client.
But, results based on many factors, such as competitive efforts, not just advertising
Choosing an Agency – Process

1. Set goals.
2. Select process and criteria.
3. Screen initial list of applicants.
4. Request client references.
5. Reduce list to 2-3 viable agencies.
6. Request creative pitch.
Choosing an Advertising Agency-Factors

 Work with the agency that handles the advertising in the firm’s home market.
 Pick a purely local agency in the foreign market.
 Choose the local office of a large international agency.
 Select an international network of ad agencies that spans the globe.
Evaluation Criteria In Selecting Advertising Agency

Size of agency
Relevant experience
Conflicts of interest
Product capabilities
Media purchasing capabilities
Client retention rates
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Personal chemistry
Market coverage
Quality of coverage
Expertise with developing a central international campaign
Creative reputation
Scope and quality of support services
Desirable image (“global” versus “local”)
Conflicting accounts
Other services availability

Client Agency Relationship- Principles


The agency avoids advertising a close substitute competing product.
The agency receives the green signal from the client for all expenses incurred on its
advertising.
Agency keeps the media commission for itself and the client undertakes to foot the
bill promptly.
If media grants any cash discount it is passed on to the client.
Agency is not taken for media lapses in terms of scheduling, positioning etc.

Agency – Media Relationship Principles


The agency alone is responsible for payment to the media.
Agency doesn’t allow any cut from the commission received from the medium to go
the client.
The media do not discriminate amongst the agencies dealt with and follow a uniform
policy for all agencies.
Media do not alter the advertising material without the prior consent

1.11 ADVERTISING CAMPAIGN


It includes a series of ads. Placed in various media, that are designed to meet objective
and are based on an analysis of marketing and communication situations.
S.Waltson Dunn

STEPS IN ADVERTISING CAMPAIGN


I Appraisal Of Advertising Opportunity
Presence of positive primary demands
Good chances of product differentiation
Products have hidden or not readily noticeable qualities
Presence of powerful emotional buying motives
Availability of sufficient funds
II Analyzing and defining the target market
Who buys the product?
What do they really buy?
When do they buy?
How do they use the product?
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III Setting Advertising Objectives


Use hierarchy of effects model so that the components of a campaign support each
other and thereby stand a better chance of creating positive synergy in influencing the
consumer choice.
No rule with specific set of guidelines that all advertising must follow to achieve
certain objectives.

IV Determining the Advertising Budget


Is basically a plan to allocate financial resources to advertising for future operations
and should be reviewed constantly keeping in view the changing market conditions.

V Deciding Media and Creative strategy


Media plan is developed simultaneously with creative plan.
It determines the best way to reach the audience with the advertiser’s message.
Creative strategy concerns message to deliver to the audience for accomplishing the
objectives.

VI Creating Ads Pre test & Release Ads


Rising cost of media, Thousands of advertising messages competing to get noticed
and audience apathy and often dislike of ads make it essential for companies to be
reasonably sure that the campaign message is attended to and comprehended.

VII Evaluating The final results 5%/


Repurchase/

Evaluative research
Regular /Use

Ongoing test 10 % Trial

Provides feedback 20 % Preference

Helps future planning. 40 % Liking

60 % Knowledge / Comprehension

1.12 ADVERTISING OBJECTIVES 80 % Awareness

Setting Advertising Objectives


Advertising Objectives should be operational.
They should be effective criteria for decision making and should provide standards
with which results cab be compared.
They should be effective communication tools, providing a line between strategic and
tactical decisions.

DAGMAR Approach

DEFINING ADVERTISING GOALS FOR MEASURED ADVERTISING RESULTS

Advertsing’s Job purely and simply , is to communicate to a defined audience information


and a frame of mind that stimulates action.

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Advertising succeeds or fails depending on how well it communicates the desired


information and attitudes to the right people at the right time and at the right cost.”

Steps In Dagmar Approach :


 Awareness
 Comprehension
 Conviction
 Action
Specific Task
Concrete , Measurable Tasks
Target audience
Bench Mark & Degree Of Change Sought
Specified time period
Assessment & Criticism
Problems with response hierarchy
Sales as the advertising goal
Practicality and costs
Inhibits creativity

UNIT – II
2.1 MEDIA
It refers to the general category of delivery systems available to carry advertising message to
a selected audience such as print, broadcast , outdoor etc.

2.2 MEDIA PLANNING


The process of choosing the vehicle of mass communication in which to place an
advertiser's message, purchasing that time or space, and insuring that the advertising message
runs as purchased."
It is also a series of decisions made to answer the question, "What are the best means
of delivering advertisements to prospective purchasers of a brand or service?"
Refers to a series of decisions that need to taken in delivering the ad message to the
largest numbers of the target audience in the most effective manner at the lowest cost
Some specific questions are
 How many prospects do I need to reach?
 In which medium or media?
 How many times a month?
 In which months?
 In which markets and regions should ads appear?
 How much money should be spent in each medium?

2.3 Media Selection Considerations

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Special Characteristics of Media:


• In-depth coverage & permanence:
Basically the media should have good coverage and should be a permanent source i.e. can be
red, re-red and retained; in this regard magazines are a good example.

• Variety of subjects covered:


It should not be restricted and should take care of variety of subjects.

• Mobility:
The media should be in a position to carry the message across to where ever desired. In this
regard the best example are newspaper and magazines which can be red and carried almost
everywhere i.e. in the house while traveling at the place of work or library etc.

• Results assessable:
Basically it is the effort of evaluation which is possible by dividing the cost of space by the
number of replies received.

2.4 MEDIA PLAN & STRATEGY


Step 1 : Situation Analysis:
Analysis and define the marketing problem. What are the company’s and competitions
strengths and weakness? What are the opportunities and threats?

Step 2 : Marketing Strategy


Formulate activities that will solve concerned marketing problems:
 Marketing objectives
 Target market segments
 Marketing mix decisions.
Step 3 : Advertising Strategy
Decide what message to communicate through advertising
Detailed profiling of target audience
Product and its positioning decision
Communication media to be used
Advertising message and appeal.

 Index = % of users in a demographic segment


---------------------------------------------------------- * 100
% of population in the same segment

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 BDI = % of Brands total country sales in ---


---------------------------------------------------------- * 100
% of total country population in -------

 CDI = % of product category total country sales in ---


---------------------------------------------------------- * 100
% of total country population in -------

Step : 4 Setting Media Objectives


Set media goals that can achieve advertising objectives.
Eg. Use print media to provide coverage of 80% of the target market over a 6 month period.

Step : 5 Determining Media Strategy


 Set guidelines for the selection and use of media
 Select the best strategy alternative
 Media Mix & target market coverage
 Geographic coverage
 Media Scheduling

Step : 6 Selection Of Media


 Comparing and selection the media class the best fulfils the criteria, such as TV ,
newspapers, magazine, radio or others.
 Audience size and characteristics are used in making inter media comparisions.
 Media planners will specify particular media vehicles in a media class, such as the
names of magazine, newapapers, TV programme etc.

2.5 Media Reach & Frequency


Frequency = Total Exposures
-------------------------
Reach
Programme Rating
= No of household viewing the Program
----------------------------------- * 100
Total number of household owning TV sets

Gross Rating Points = Reach * Frequency

Frequency = Gross Rating Point


---------------------------
Reach

Reach = Gross Rating Point


---------------------------
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Frequency

Target Rating Points


Refers to the number of times (frequency) and the number of individuals in the
primary target audience that the media will reach.

2.6 Important Factors in determining Frequency levels


Marketing Factors
 Brand history
 Brand share
 Brand loyalty
 Purchase cycles
 Usage cycle
 Competitive Share of voice
 Target group

Message or Creative factors


 Message complexity
 Message uniqueness
 New versus continuing campaigns
 Image versus product sell
 Message variation
 Wearout
 Advertising units.

Media Factors
 Clutter
 Editorial environment
 Attentiveness
 Scheduling
 Number of media used
 Repeat exposures

Qualitative Aspects Of Media vehicle Source


 Expertise
 Prestige
 Editorial Fit
 Mood Created
 Involvement
 Unbiased approach

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Determining The Relative Cost Of Media

 Cost per thousand (CPM)


Cost of ad space
-------------------------- * 100
Circulation

 Cost per Rating Point (CPRP)

Cost of commercial time


-------------------------- * 100
Programme rating

 Milline Rate
Is the cost in rupees per line of standard dimensions to reach a newspaper circulation
of one million. Alternately to calculate the cost of space, rupees, per square inch, or
square centimeter is used for media buying. Newspaper with higher circulation
figures charge more per line or per unit space.

 Media Scheduling
Once the media has been selected , it is necessary to determine the timing and
allocation of advertising insertion.
It concern answering such questions as
 How many of each media vehicles space and time units be bought?
 Over what time units, this will be bought?
 Over what time units, should such buying be ?

MEDIA SCHEDULING
Scheduling refers to the pattern of advertising timing, represented as plots on a yearly
flowchart. These plots indicate the pattern of scheduled times advertising must appear to
coincide with favorable selling periods. The classic scheduling models are Continuity,
Flighting and Pulsing.

I Continuity
This model is primarily for non-seasonal products, yet sometimes for seasonal products.
Advertising runs steadily with little variation over the campaign period. There may be short
gaps at regular intervals and also long gaps—for instance, one ad every week for 52 weeks,
and then a pause. This pattern of advertising is prevalent in service and packaged goods that
require continuous reinforcement on the audience for top of mind recollection at point of
purchase.

Advantages:
Works as a reminder Covers the entire purchase cycle Cost efficiencies in the form of large
media discounts Positioning advantages within media Program or plan that identifies the
media channels used in an advertising campaign, and specifies insertion or broadcast dates,
positions, and duration of the messages.

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II Flighting (or "bursting")

In media scheduling for seasonal product categories, flighting involves intermittent and
irregular periods of advertising, alternating with shorter periods of no advertising at all. For
instance, all of 2000 Target Rating Poinered in a single month, "going dark" for the rest of the
year. Halloween costumes are rarely purchased all year except during the months of
September and October.

Advantages:
 Advertisers buy heavier weight than competitors for a relatively shorter period of time
 Little waste, since advertising concentrates on the best purchasing cycle period
 Series of commercials appear as a unified campaign on different media vehicles

III Pulsing

Pulsing combines flighting and continuous scheduling by using a low advertising level all
year round and heavy advertising during peak selling periods. Product categories that are sold
year round but experience a surge in sales at intermittent periods are good candidates for
pulsing. For instance, under-arm deodorants, sell all year, but more in summer months.

Advantages:
 Covers different market situations
 Advantages of both continuity and flighting possible

Types Of Scheduling

 Steady Pulse
Eg one ad per week for 52 weeks
 Seasonal Pulse
Eg A/C For summer seasons
 Period Pulse
At regular intervals but not related to the seasons.
 Start up pulse;
Heavy media scheduling for new product
 Promotional pulse:
Suits for particular promotional theme of a company.
 Erratic Pulse:
Advertising is spaced at irregular intervals.

Media Types
I Broad Cast Media
Television
 Doordarsan
 Star TV
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 Sun TV
 B.B.C
Radio
 FM
 BBC

II Non Broad Cast Media


 Video Cassettes
 Audio Caseettes
 Cable Television
 Cinema

III Print Media


Newspapers
 National
 Regional
 Daily
 Weekly
 Sunday
Magazines
 General Interest
 Special Interest
 Trade Publications
 Institutional Publications

IV Direct Response
 Mailers as letters
 Mailers as pamphlets
 Telemarketing

V Outdoor Media
 Posters
 Hoardings
 Wall painting
 Neon Signs
 Sky Advertising

VI Vehicular Media
 Mainline Trains
 Sub Urban Trains
 Buses & trams
 Taxis & Auto Rickshaws
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 Private Vehicles

VII Point Of Purchase Media


 Banners
 Stickers
 Packaging
 Painted Signs
 Hangings
 Baskets

VIII Specialty Media


 Signed Printed – T Shirts
 Buttons
 Caps
 Stickers
IX Internet
 Vortal
 Portal
 Independent websites
 Screen savers
IX Other Media
 Trolleys at airport
 Clowns/ Tall man
 Ads in Movies and Videos
 Sandwich Man

I NEWSPAPERS
Advantages
 Flexibility:
• advertising space from 1 inch to multiple pages can be used.
• ads can be scheduled on any day of the week.
• ads can be prepared on very short notice.
 Range Of Market Coverage
Provide geographical flexibility.
 Competitive Advantage:
Relatively cheap as against other media.
 Positive Consumer Attitudes:
High reader interest & approx 80% coverage.
 Interaction Of National & Local:
Provide a bridge between the national advertiser and the local retailer.

Disadvantages
Despite being very useful medium for advertising it has certain disadvantages which should
be kept in mind and are as under:
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1. No Audience Selection: Does not provide audience selectivity.


2. High waste circulation: makes them too expensive on national basis.
3. Short life Span: unlikely to be put aside and read later like magazine.
4. Poor reproduction: generally poor color reproduction.

II MAGAZINES
Advantages
 Target Audience:
The magazines can reach specialized audiences and thereby prove very useful e.g.
magazines like men’s health target men’s for their health and women magazines target
women.
 Audience Receptivity:
Magazines have a very high level of audience receptivity such as an ad in fortune magazine
would impress business audience.
 Long life Span:
Magazines have longest life span of all the media because some of them might never be
discarded like National Geographic magazine etc. moreover these have highest reach
potential as they are past along to family friends customers and colleagues.
 Format:
Generally, the magazines format allows creative advertising variety through multiple pages
inserts and other features.
 Visual Quality:
The production quality has become excellent being printed on top class paper and with very
good reproduction quality.
 Sales promotions:
Advertisers can use magazines to distribute various sales promotions like coupons, samples
and information cards etc.

Disadvantages:
Magazines are limited by certain factors and the most prominent disadvantages as are given
and explain below:
 Limited distribution: In view of the magazines having limited distribution they lack
penetration, thus selectivity of the medium is lost.
 Lack of immediacy:
Advertisements may take long time to have an effect on the reader because some readers may
not look at an issue of a magazine until after it comes to them so the ad may take long time to
have an effect on the reader.
 Limited flexibility:
Despite magazines offering advertisers many benefits long leave time and limited flexibility
are drawbacks there is closing dates often 2 to 3 months prior to the date of issue.
 High cost:
The production costs for magazines are relatively high because of high quality color
production.

III TELEVISION
Advantages
 Creativity and Impact:

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The greatest advantage of TV is the opportunity it provides for presenting the advertising
message, the blend of sight and sound offers tremendous creative flexibility and resultantly
making deep impact.
 Coverage and cost effectiveness:
Television advertising makes it possible to reach large audience nearly everyone regardless of
age, gender, income or educational level watches TV at least for sometime. In view of the
large coverage of its telecast makes it more effective both for advertising and cost
effectiveness.
 Captivity and attention:
The combined power of site, sound, motion and emotion creates a very good effect
 Selectivity and flexibility:
In TV advertising some selectivity is possible to due to variations in the composition of
audiences as a result of program content time of telecast and geographical coverage.

Limitations:
• Costs: It is enormously expensive medium to advertise.
• Lack of selectivity: TV doesn’t offer as much audience selectivity as radio, magazine,
newspapers or direct mail for reach precise segment of the market.
 Fleeting message: Television commercials usually last from 30 seconds or less and leave
nothing tangible for the viewer to examine or consider.
• Clutter: The problem of reading messages and shorter commercials suggests that since the
advertiser message is only one or more spots its results in effectiveness because of such
clutter.
• Limited viewer attention: Buying time on a TV program it communicates a message to
large number of customers yet there is increasing evidence that the size of viewing audience
shrink during a commercial break.
• Deception in television advertising: Art and technology is being used to create simulations
to tell stories to evoke desired reaction from the audience. Basically a tantamount to say
what is not actually true.

IV RADIO
Advantages:
• Low cost option.
• Definable target markets based on their format.
• Radio stations offer considerable flexibility & a short lead time.
• Intimacy like FM stations etc, liking to presenters, DJ’s etc.
• Mobile: Its portability makes it mobile and can be taken anywhere.

Disadvantages:
Radio has its disadvantages too which are given below:
• Short exposure time: Radio advertisements normally last only 15 or 30 seconds and
listeners busy with other activities may not register them.
• Target duplication: Several radio stations may try to reach the same target market and
advertising on all of them may not be financially feasible yet reaching everyone in that
target market may not be possible unless all stations are used.
• Overloading of ads: Normally too much information is put in one add thus overloading
the consumer mind and very little is retain.
• Loyal listenership: Radio stations have loyal listener who do not prefer to listen to other
stations.
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V CABLE TV :
Advantages
• Can buy time on programs for specific audiences
• Cost is lower than normal TV.
• Production costs more affordable.
• More innovative production people available.
• Message reach assured

Limitations:
There are various disadvantages of cable TV which limit its benefits these are appended
below:
• Limited or small Reach.
• May have less experienced production crew.
• Reaching specific customers, but not potential customers.
• Audience may be fragmented and viewers may stay with a program for a shorter period of
time.

VI TRANSIT ADVERTISING
Advantages
• Exposure to one ad can be long if inside a transit vehicle.
• Frequency.
• Ads outside the transit vehicle are seen by large & diverse audiences.
• Ad message can be timely.
• Method tends to be quite inexpensive.
• Ads could be somewhat lifestyle targeted – passing through specific neighborhoods.

Disadvantages
• Ad design is usually limited to size of space.
• People on mass transit are not generally in a receptive mood.
• Transit ads are hard to target.
• Surroundings may distract from the message.
• Mass transit environment may not suit Message.

VII BILLBOARDS ADVERTISING


Advantages
• Big splashy messages attract attention.
• Ad has impact: technology has made it more interesting.
• Ad reaches lot of people, as they travel same route every day.

Disadvantages
• Hard to reach specific audience.
• Creativity inhibited by space limitations.
• Hard to measure its effectiveness.
• Ad may become weathered & vandalized.
• Costs though reasonable could become quite expensive by innovative adaptations.

VIII VEHICULAR MEDIA


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Advantages:
● Cheap & records for higher exposure
● Strong reinforcement
● Bright colors and creativity can catch the attention.
● Commuters inside the bus and trains have enough time to gaze through the adv
message
● People may Object as it distract the attention of the people driving on the road.
Disadvantages:
● Since the vehicles move at speed Message may not be read by the people
● Media does not focus on a particular audience group internet.

IX INTERNET MEDIA
Advantages:
● Fast growing
● Ability to reach narrow target audience
● Short lead time
● Moderate cost

Disadvantages:
● Difficult to measure ad effectiveness and ROI
● Ad exposure relies on “click through”
● Not all consumers have access to internet

X OUTDOOR MEDIA
Advantages:
● High exposure frequency
● Moderate cost
● Flexibility
● Geographic selectivity
● Broad, diverse market
Disadvantages:
● Short message
● Lack of demographic selectivity
● High “noise” level
XI ONLINE ADVERTISING
 Button Ads:
Squarish Ads that are usually at the bottom of a web page & contain only a corporate
name of brand.
 Click Through or Click Rate:
How often a viewer responds to an ad by clicking on it.
 Cookies:
Information stored on a viewer’s web browser to help identify that particular person to
the web provider – the next time that viewer visits a particular site.
 Cost per Click:
The rate charges to advertisers if the user responds to a displayed ad.
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 Cost per Lead/Sale:


The rate charged to advertisers if the user responds with personal information.
 Impressions:
The total number of times an ad is displayed on a web page – different than hits.
 Sponsorships, or Co –Branded Ads:
Integrating companies brands & products on web sites.
 Ad Views:
Number of times an ad banner is down loaded.
 Banner:
Ad on Web site hot linked to advertiser’s site.
 Interstitial:
An ad that appears in a window on your screen while waiting for web page to load.
 Rich Media:
Special effect technology like streaming video, audio used for internet ads etc.

IMPORTANCE OF ONLINE ADVERTISING


One of the very few media alternatives that can be used for almost all advertising purposes
across all possible market segments.
• There is rapid acceptance of Internet as a medium of connectivity & commerce.
• Provides more interactivity with customers.
• Consumers can interact with a product & build their own experience with it.

COMPARISON OF ADVERTISING

OBJECTIVES OF ONLINE ADVERTISING


The objectives of online advertising are given and explained below:
Build brands: Many top fortune 500 companies tell the world about their products & educate
public.
Drive traffic to website: Online advertisements offer proven way to steer interested buyers
to website to know more about products & services.
Develop qualified leads: On website through best copy & pictures convince the prospects
for good business.
Conduct sales: Once convinced sales can be closed either online or direct buyer to sales
channel.

TYPES OF ONLINE ADVERTISING


There are different types of online advertising in use and these are as follows:
 World Wide Web Home Page: The web page can identify retailers and other product
providers that can prove useful for the consumer.
 Banners: These are easy to create and are usually placed on a website featuring
complementary products.
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 Logos: Company logos are placed at the top of the websites and generally depicts the
motto or operations of the company.
 Email Ads: By creating compelling email experiences advertisers hope to convey their
message in a better way.
 Keywords on Search Engines: Advertisers can buy keywords on search engines to
increase their exposure.
 Classified Ads: Classified ads work because as far as users are concerned they are
content and not advertising as people actively seek out the classifieds when they are
looking to buy such as a sight like ebay.com
 Interstitials: These are those adds that popup when the users load a new page. In fact
when the user hits a button to link to a new page the interstitials is display and disappears
as soon as the new page is loaded.
 Sponsored Mailing List: Mailing list offer advertisers highly targeted audience that
gather to discuss specific interest.

CHALLENGES OF ONLINE ADVERTISING


Marketing Challenges:
• Need for simpler language.
• Where ever practical use same language.
• Need for selling the internet in simpler way.
• Obtain & distribute accurate figures about size of online audience.
• Collate research about online penetration and attentiveness.
Educational Challenges:
• Special Initiatives needed to educate the advertisers about benefits & methods of online
advertising.
Structural challenges:
• At present planning process remains a particular challenge.
• Lack of good copy or Marketing technique.
• A compelling & irresistible offer essential for prospect.
New Developments
• Better Metrics.
• Greater use of Sound.
• More customer support.
• Customized websites.

TOOLS FOR ONLINE ADVERTISING

Macromedia Flash MX: It is a professional standard authoring tool to produce high –


impact Web sites. High creativity is possible with animation, interactive navigational controls
etc.

Adobe Photoshop: It is comprehensive toolset with new capabilities. Experiments with


painting effects, patterns for stand out images. Tools like retouching, painting, drawing &
web tools can help in creating extraordinary images.

JAVA: It is extensively used in internet media for applets, graphics & other interactive
applications.

HTML: Hyper text markup language is very useful tool in creating web pages.
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DHTML: It is dynamic form of pre existing HTML.

ASP & JSP: Active server pages & Java server pages –latest technology for interactive web
pages.

TYPES OF ADVERTISING
I Geographical Spread – Basis
 National
Offers a product or service to the general consumer audience across the country Eg
IBM
 Local:
Firms may like to restrict their business to a very small geographical area – state or a
region. Eg Jewellery, Retail Chain
 Global:
MNC Advertisement for all the countries where the product is selling with minor
differences with culture & legal factors. Eg Nestle,

II Target Group – Basis


 Consumer
Aims at directly meeting the needs of the target segment to promote the sale of the
advertised product. Eg. Unit Trust Of India
 Industrial
Refers to those advertisement which are sponsored by the manufacturing or country
distributors and is aimed at buyers of the industrial products. Eg . Petroleum
Conservation research association, Vinar , Tata Steel
 Trader
Aims to promote product to wholesalers and retailers.
Co-operative Advertising - Strategy in which a retailer shares advertising costs with
a manufacturer or wholesaler
 Professional
Is directed towards people who are not the actual users of a product but influence
the purchase decision for their customers. Eg Drugs

Institutional /Corporate
Aims by institutions to build up image of itself in the public mind.
 Pioneering - Information new products
 Image Building – Reinforce, create
 Advocacy –Communicate a view on issue
Eg Bajaj , Shakthi Masala, Tata,

III Impact - Basis


 Demand
 Primary
Aims to stimulate the overall demand of the whole product category
Eg Coffee Board, Egg Board
 Selective
Aims to stimulate the demand for a particular brand in a product class.
Eg Nescafe
 Action
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 Direct
That stresses & persuades immediate buying of the product
- Informative
- Persuasive
- Reminder
Eg Ice creams, chocolates
 Indirect
It attempts to create a favorable attitude towards the sponsor and his products
or services. Eg Mobile

IV Product Basis
 Pioneering – Explain new product
 Competitive – compare competition
 Remind/ Reinforce -– remind, reinforce, encourage repeat purchase

V Non Product – Basis


 Idea - Aims to convey the idea about some topic. Eg AIDS, Energy Conservation
 Service - Service sectors Eg Hotels, Airlines
 Financial - Communication to shareholders, public about financial position Eg
Balance Sheet
 Personal - personal advertisements Eg greetings, Obituary

VI APPEAL – BASIS
 Rational - Aims to provide information , it explains the consumer benefits rather
than product features. Eg Aquaguard
 Emotional - Fear, Humor, Sex advertisements. Eg Deebeers, ICICI Prudential,
Slice,

VII Other Type


 Celebrity Advertisements
Use of celebrity spokespeople for products. It build brand equity but can hurt brand if
celebrity is hit by scandal.
 Surrogate Advertising
It is prominently seen in cases where advertising a particular product is banned by law.
Eg Kingfisher beer brands
 Covert Advertising
A product or a particular brand is incorporated in some entertainment and media
channels like movies, television shows or even sports.

CREATIVE ADVERTISING
It denotes originating, an idea or a thing that did not exist before.
It involves combining previously unconnected ideas or objects into something new.
It can be learned & used to generate original ideas.

Advertising Creativity
It is the ability to come up with fresh, perhaps unconventional, unique, appropriate
and effective ideas that can be used as solutions to an advertiser’s communications
problems.

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A creative idea can be appropriate and effective only when it is relevant to the target
audience’s needs, wants, or aspirations.

Stages Of Creativity
Preparation Stage;
The creative people immerse himself or herself in the problem. At this stage the writer
gathers the raw material that will become the substance the should exist in the mind of
creative person in the form of previous experience.
Mental Digestive stage:
Once the raw material has been gathered, the creative person’s mind takes over and
begins to work on the material constantly and vigorously, trying to find that elusive new
relationship that is the foundation of an idea. At this stage writer reaches the point of
exhaustion and hopelessness.
Incubation Stage:
At this stage writer puts the problem out of his mind and turn it over the unconscious
mind to work on while he or she turns to something else. It is often referred to as day
dreaming.
Illumination Stage:
At the stage when the individual least expects it, a new idea will appear as if out of
nowhere. It is the stage of creative the process that most people associate with the creative
act.
Application stage:
The creative person takes his or her idea out into the real world to test it against reality
to see. If it really works. This stage requires patience and persistence to see the
implementation of the idea through to its final success.

Elements of the creative strategy


Advertising Objectives:
It is a statement explaining the purpose and role of an advertising campaign or a
particular advertisement. It should describe what the ad maker wants the target audience to
think, feel, or do.
Target Audience Profile:
It should include a profile of the target audience so that writers and artists can
understand the buying habits, lifestyle and motivation of the people who will be reading,
watching or listening to their ads.
Key consumer benefits;
A key consumer benefit is a product that is important, relevant and unique to a target
group of prospects. This is the reason why target audience should buy our product what the
consumer gets from buying and using our product.
Strategic Approach
It outlines the statement of how the product will be positioned, what appeals will be
used and what key benefits will be presented.
Support:
It provides the copy writer with supporting details that explains the reason why the
audience should believe the primary message of the advertisement.
Tone, Style and Manner
Is a statement of the product personally to be conveyed or the manner and style of the
advertising campaign or individual advertisement. This statement should support the basic
selling premise and provide the appropriate personally or feel to the advertising.

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ADVERTISING APPEAL
Reason for a person to buy a product
The approach used to attract the attention of consumers
It “moves people, speaks to their wants and needs, excites their interest”

Types of Appeal
Fear
Humor
Sex
Music
Rationality
Emotions
Scarcity

Rational Appeal
Focuses on the consumer’s practical, functional, or utilitarian need for the product or
service
Emphasizes the features or benefits
Messages emphasize facts and logic
Used by business-to-business advertisers.
Well-suited for
 Print media
 Complex products
 High involvement products
 Rational Motives
 Comfort
 Convenience
 Economy
 Health
 Quality
 Dependability
 Durability
 Performance
 Efficiency

 Feature appeals - Focus on the dominant traits of the product


 Competitive appeals- Makes comparisons to other brands
 Favorable price appeals- Makes price offer the dominant point
 News appeals - News or announcement about the product
 Product/service popularity appeals –Stresses the brand’s popularity

EMOTIONAL APPEAL
 Relate to consumers’ social and/or psychological needs for purchasing a product or
service.
 Many advertisers believe consumers’ emotions work better at selling brands that do
not differ from competing brands.
 Based on three ideas:
o Consumers ignore most ads
o Rational ads go unnoticed
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o Emotional ads can capture attention


 Key to developing brand loyalty.
 Use more in b2b advertising.

SCARCITY APPEAL
 Based on
o Limited supply
o Limited time to purchase
 Tied with promotional tools such as contests, sweepstakes, and coupons.
 Encourage customers to take action.

OTHER ADVERTISING APPEALS

ADVERTISEMENT COPY
It refers to written material which is to be set in type for the print media or spoken by
announcers for broadcast commercials.
A copy writer translates the selling points of a clients product or services into benefits
for selected consumers. He is concerned with what to say and show, how best to say
and show it.
A copy writer must know about
 The competition
 Appeal to be used
 Editorial environment of the media
 The Theme
 Objectives of copy
 Product & its attributes
 Target market
 Elements of the marketing mix
 Statutory regulation.

Divisions/ Structure Of Copy

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 HEADLINE
Is a word or phrase which is more prominent and catching than the other elements of the
copy, and carries an ad message either below or above it.
Essential of a Good Headline
 Must break the ice
 Concise
 Specific
 Provocative
 Relevance

Forms Of Headlines
 Direct Forms Headline - “ Exclusive double duty door lock from Godrej”
 New Headline – “Nation’s Best News Channel
 Curiosity or provocative – What does the next generation want from us?
 Selective Headline – “The choice of Mothers”
 Humorous Headline – “Bonds in A Snap”
 Command Headline – “Be Yourself”
 Situation Headline – Tsunami, Swine Flu
 Challenging Headline – Money Back offer, HLL
 Negative Headline - I don’t Need a Insurance
 Affirmative Headline – Growing Children need Complan
 Question Headline – ‘Why Kenstar microwave Oven?

 SUB – HEADLINE
 An advertisement may express a provocative thought in the headline, which may
require further explanation.
 May be used to expand on the thought
Eg. “The Finolex Assurance” “No Shocks. No Short Circuit. No electrical Fires”

 BODY COPY
 The main text of the advertisement called ‘Body Copy” is the logical continuation of
headlines and subheads, and completes the sales story.

Elements of the Body


 Lead In – bridge between the headline, the sub heads, and the sales ideas.
 Interior paragraphs- This is where proof should be given for product claims and
promise made in the headline. To be effective a copy should be always be credible
and truthful.
 Trial Close – This refers to request for the order. Good body copy should contain
request for the order more than once.
 Close – This is a point in the advertisement where the sale is made.

 SLOGAN
 Is a catchy Sentence or phase which is easy to remember.
 Are direct, short,, summarized
 It gives an identity to the company or to its products.
 Eg “Believe in the Best”
 OTHER ELEMENTS OF AN ADVERTISEMENT
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 Pictures
 Seal
 Logo
 Signature

3.6 TYPES OF COPY


 Scientific Copy –Technical specification of a product are explained Eg .Saffola,
Colgate
 Descriptive Copy – In a non technical manner the product attributes are described.
 Narrative Copy – A fictional story is narrated.
 Colloquial Copy – Informal conversational language is used to convey the
message.
 Humorous Copy – Effective humor makes the advertisement noticeable.
 Topical Copy – When the copy is integrated to a recent happening or event.
 Endorsement Copy – A product is endorsed by an opinion leader
 Prestige Copy – Distinguished and favorable atmosphere is created for the sale of
the product.
 Questioning Copy – Several questions are put forward not to seek answers but to
emphasis a certain attribute.

Essential of a Good Copy


 It must be compact and appropriate
 It must be clear and creative
 It must have character and colour
 It must be personal and convincing
 It must be interesting and entertaining
 It must be action oriented.

VISUAL ELEMENTS OF AN ADVERTISEMENT


I LAYOUT
 A plan which indicates where the different components of an headline, text and
illustrations are to be placed, for the effective communication of the advertising
message.
 It creates Image , It attract readership

 Elements Of A Layout
 Background
 Border
 Caption
 Coupon
 Decoration
 Heading
 Illustration
 Mascot
 Name Plate
 Price
 Product
 Slogan
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 Space
 Sub Heading
 Trade Mark
 Text

 Stages Of Layout
 Thumbnail Sketch – Refers to miniature rough sketches of possible layouts.
 Rough Layout – More detailed sketches done in the actual size of the final
layout.
 Finished layout – Once a selection has been made from among alternative
rough, a more finished layout is prepared.
 Comprehensive – Body copy or text will be pasted in and the ad appears on a
cardboard surface, so that it can be presented to the client.
 Artwork – This is a camera ready paste up prepared for distribution to the
media.

 Layout Format
 Standard Layout – This consist of a dominant illustration a headline, body
copy and logotype , arranged in that order. Also known as a conventional layout.
 Editorial Layout – This resembles editorial material in a publication. It can be
effective when the message is a serious one.
Poster layout – This is a picture dominant layout, with the visual covering almost
the entire advertisement.
Comic Strip Layout- This is a picture caption arrangement and could include
cartoon, drawings that follow the format of the comic strip.
 All –Type – Layout has no visual and includes only lettering.

 Qualities Of A Layout
Balance – An advertisement is balanced when it looks balanced that is. When
each element seems to appear in their place. This kind of balance in a layout
means that the top and bottom halves or the right and left halves contain identical
masses.
 Proportion: This refers to the total space occupied by the layout elements, as
opposed to the white space around them. Elements in an advertisements should be
accorded space based on their importance to the completed advertisement.

 Contrast – It may be achieved through colour, size, shape or direction of


the layout elements. It helps emphasis certain elements of the
advertisements.
 Movement – A good layout is one which helps the eye move naturally
from one Element to another, leading the reader gracefully through the
advertisement in a logical sequence.
 Unity – This is achieved when the layout’s separate elements appear
optically tied together as a unified whole.
II ILLUSTRATIONS
These consist of Photographs, drawing, graphs, Charts, painting and other pictorial
devices. These are used to gain attention, comprehension, attitude change and
behavior change.

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 Significance
 They are more effective than words
 They support the copy
 They are demonstration
 They can make us understand technical details.
 Associations and images are created
 They evoke moods.
 Color photograph give high fidelity to the products.
 Background and atmosphere can be shown effectively with their use.
 It attract attentions.
 It make advertising message believable.
 Bound the audience in the headlines and copy

 Good Illustration
 They should be suggestive.
 They should be clearly reproduced
 They should be eye – reproduced
 They should be properly set in the total layout.
 They should be relevant.
 They should be suitable for the product and the media.
 They should harmonize with the copy.

 Methods Of Illustration
 Symbolic Illustration
 Comparison Illustration
 Product /use Illustration
 Magnification of details
 Product in the setting illustration
 Result of a product’ use illustration
 Product Alone Type illustration
 Dramatized illustration

III SIZE :
The readership increases proportionately with advertising size.
IV COLOUR :
It has been found that colours attract more attention than mere use of black and
white, in terms of readership.

V TOPOGRAPHY:
The choice of the typeface can also contribute to the mood. Image and credibility of
an advertisement. When selecting a typeface the factors to be considered are reading
ease, and the image of the advertiser.

SALES PROMOTION
Definition: “Materials that act as a direct inducement, offering added value, or incentive for
the product, to resellers, sales persons or consumers.”
Designed for immediate (short term) increase in product sales.

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Cirrus...Sweepstakes, cocktail parties, test drives

Selecting Promotional Tools


A marketer must do the following while planning and sending communications to a target
audience:
1. Identify the Audience
Individuals, groups, special publics or the general public.Intermediaries vs Consumer
2. Identify the Stage of Product Life Cycle
o Introductory: Inform Publicity/Advertising/Sales force (interm.)/Sales
promotion (free samples)
o Growth: Persuade Differentiate from competitors offering
o Maturity: Remind Reminder advertising, Sales promotion (coupons)
o Decline: Cut budget
3. Product Characteristics
o Complexity: How much information must be communicated. The more
complex the message, the greater the need to use personal selling.
o Risk: Greater risk, greater need for personal selling
4. Stages of Buying Decision
In many cases the final response sought is purchase, but purchase is the
result of a long process of consumer decision making. Need to know where the
target audience now stands (in the process), and what state they need to be
moved to.
Adoption Process
o Not Aware--Advertising/Publicity
o Aware--no knowledge Advertising/Publicity
o Interest--how do they feel? Personal Selling/SalesPromotion/Advertising
o Evaluation--should they try? sales promotion/personal selling
o Trial--test drive/sales promotion
o Adoption--do they purchase? Reminder/reinforce--advertising Communication
programs goal must lead consumers to take the final step.
o
5. ChannelStrategies
-Push Vs Pull Policy
o Push-promotes product only to the next institutions down the marketing
channel. Stresses personal selling, can use sales promotions and advertising
used in conjunction.
o Pull-promotes directly to consumers, intention is to create a strong consumer
demand, primarily advertising and sales promotion. Since consumers are
persuaded to seek products in retail stores, retailers will in turn go to
wholesalers etc (use channels overhead)

Objectives of Sales Promotion


(i) To introduce new products
(ii) To attract new customers and retain the existing ones
(iii) To maintain sales of seasonal products
(iv) To meet the challenge of competition

Let us learn about these objectives in details.

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(i) To introduce new products: Have you ever heard about distribution of free samples?
Perhaps you know that many companies distribute free samples while introducing new
products. The consumers after using these free samples may develop a taste for it and buy
the products later for consumption.
(ii) To attract new customers and retain the existing ones: Sales promotion measures help
to attract or create new customers for the products. While moving in the market,
customers are generally attracted towards the product that offers discount, gift, prize, etc
on buying. These are some of the tools used to encourage the customers to buy the goods.
Thus, it helps to retain the existing customers, and at the same time it also attracts some
new customers to buy the product.
(iii) To maintain sales of seasonal products: There are some products like air conditioner,
fan, refrigerator, cooler, winter clothes, room heater, sunscreen lotion, glycerin soap etc.,
which are used only in particular seasons. To maintain the sale of these types of products
normally the manufactures and dealers give off-season discount. For example, you can
buy air conditioner in winter at a reduced price. Similarly you may get discount on winter
clothes during summer.
(iv) To meet the challenge of competition: Today’s business faces competition all the time.
New products frequently come to the market and at the same time improvement also takes
place. So sales promotion measures have become essential to retain the market share of
the seller or producer in the product-market.

Importance of Sales Promotion:


 The business world today is a world of competition. A business cannot survive if its
products do not sell in the market. Thus, all marketing activities are undertaken to
increase sales.
 Producers may spend a lot on advertising and personal selling. Still the product may
not sell. So incentives need to be offered to attract customers to buy the product.
Thus, sales promotion is important to increase the sale of any product.
 Let us discuss the importance of sales promotion from the point of view of
manufacturers and consumers.

From the point of view of manufacturers


Sales promotion is important for manufacturers because
i. it helps to increase sales in a competitive market and thus, increases
profits;
ii. it helps to introduce new products in the market by drawing the
attention of potential customers;
iii. when a new product is introduced or there is a change of fashion or
taste of consumers, existing stocks can be quickly disposed off;
iv. it stabilizes sales volume by keeping its customers with them. In the
age of competition it is quite much possible that a customer may change his/her
mind and try other brands. Various incentives under sales promotion schemes help
to retain the customers.

From the point of view of consumers


Sales promotion is important for consumers because
i. the consumer gets the product at a cheaper rate;
ii. it gives financial benefit to the customers by way of providing prizes and sending
them to visit different places;
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iii. the consumer gets all information about the quality, features and uses of different
products;
iv. certain schemes like money back offer creates confidence in the mind of
customers about the quality of goods; and
v. it helps to raise the standard of living of people. By exchanging their old items
they can use latest items available in the market. Use of such goods improves their
image in society.

Nature of Sales Promotion


 Encompasses all promotional activities and materials other than personal selling,
advertising and publicity.
 Grown dramatically in the last ten years due to short term focus on profits.
 Funds are usually earmarked for advertising are transferred to sales promotion.
 Often used in conjunction with other promotional efforts.
A. The advantages of sales promotion include the following:
1. Attracting customer traffic.
2. Maintaining brand or company loyalty.
3. Offering quick results.
4. Providing customer value and a reminder function.
5. Increasing impulse purchases and volume sales.
6. Generating customer enthusiasm and patronage.
7. Developing channel member cooperation.

B. Sales promotion also has several disadvantages, as follows:


1. The image of the firm may be lessened if it always runs promotions.
2. Consumers may perceive a decline in product quality.
Profit margins are often lower for a firm.
Consumers may not make purchases when the items are sold at regular prices.
5. Sales promotion may shift attention away from the product and onto secondary
factors.
C. Sales promotion must be viewed as supplementary, and not as a replacement for other
tools.

GROWTH OF SALES PROMOTION


 Sales promotion has grown substantially in recent years. There are several reasons for
this dramatic growth in sales promotion.
 First, consumers have accepted sales promotion as part of their buying decision
criteria. It provides reluctant decision makers with an incentive to make choices by
increasing the value offered by a particular brand.
 Second, the increasing tendency of businesses to focus on short-term results has
helped spur growth in sales promotion, which can provide an immediate boost in
sales. Product managers also tend to view sales promotion as a way to differentiate
their brand from that of competitors in the short term.
 Third, the emergence of computer technology has enabled manufacturers to get rapid
feedback on the results of promotions. Redemption rates for coupons or figures on
sales volume can be obtained within days.
 Finally, an increase in the size and power of retailers has also boosted the use of sales
promotion. Historically, the manufacturer held the power in the channel of
distribution. Mass marketers utilized national advertising to get directly to consumers,
creating a demand for the heavily advertised brands that stores could not afford to
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ignore. With consolidation and the growth of major retail chains, however, retailers
have gained the power to demand incentives from manufacturers to carry their
products. Many sales promotions are designed to provide benefits to the retailers.

Sales Promotion Opportunities and Limitations


o Increase in sales by providing extra incentive to purchase. May focus on
resellers (push), consumers (pull) or both.
o Objectives must be consistent with promotional objectives and overall
company objectives.
o Balance between short term sales increase and long term need for desired
reputation and brand image.
o Attract customer traffic and maintain brand/company loyalty.
o Reminder functions-calendars, T Shirts, match books etc.
o Impulse purchases increased by displays
o Contests generate excitement esp. with high payoffs.
Limitations
o Consumers may just wait for the incentives
o May diminish image of the firm, represent decline in the product quality.
o Reduces profit margins, customers may stock up during the promotion.
o Shift focus away from the product itself to secondary factors, therefore no
product differential advantage.

SALES PROMOTION TECHNIQUES /TOOLS:

a)CONSUMER-ORIENTED SALES PROMOTIONS


 Consumer sales promotions are steered toward the ultimate product users—typically
individual shoppers in the local market—but the same techniques can be used to
promote products sold by one business to another, such as computer systems, cleaning
supplies, and machinery. In contrast, trade sales promotions target resellers—
wholesalers and retailers—who carry the marketer's product.
 Following are some of the key techniques used in consumer-oriented sales
promotions.
PRICE DEALS
 A consumer price deal saves the buyer money when a product is purchased. The main
types of price deals include discounts, bonus pack deals, refunds or rebates, and
coupons.
 Price deals are usually intended to encourage trial use of a new product or line
extension, to recruit new buyers for a mature product, or to convince existing
customers to increase their purchases, accelerate their use, or purchase multiple units.
Price deals work most effectively when price is the consumer's foremost criterion or
when brand loyalty is low.
 Price Discounts: Buyers may learn about price discounts either at the point of sale or
through advertising. At the point of sale, price reductions may be posted on the
package, on signs near the product, or in storefront windows. Many types of
advertisements can be used to notify consumers of upcoming discounts, including
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fliers and newspaper and television ads. Price discounts are especially common in the
food industry, where local supermarkets run weekly specials. Price discounts may be
initiated by the manufacturer, the retailer, or the distributor. For instance, a
manufacturer may "pre-price" a product and then convince the retailer to participate in
this short-term discount through extra incentives. For price reduction strategies to be
effective, they must have the support of all distributors in the channel. Existing
customers perceive discounts as rewards and often respond by buying in larger
quantities. Price discounts alone, however, usually do not induce first time buyers.
 Bonus Pack or Banded Pack: Another type of price deal is the bonus pack or banded
pack. When a bonus pack is offered, an extra amount of the product is free when a
standard size of the product is bought at the regular price. This technique is routinely
used in the marketing of cleaning products, food, and health and beauty aids to
introduce a new or larger size. A bonus pack rewards present users but may have little
appeal to users of competitive brands. A banded pack offer is when two or more units
of a product are sold at a reduction of the regular single-unit price. Sometimes the
products are physically banded together, such as in toothbrush and toothpaste offers.
 Refund or Rebate: A refund or rebate promotion is an offer by a marketer to return a
certain amount of money when the product is purchased alone or in combination with
other products. Refunds aim to increase the quantity or frequency of purchase, to
encourage customers to "load up" on the product. This strategy dampens competition
by temporarily taking consumers out of the market, stimulates the purchase of
postponable goods such as major appliances, and creates on-shelf excitement by
encouraging special displays. Refunds and rebates are generally viewed as a reward
for purchase, and they appear to build brand loyalty rather than diminish it.
 Coupons: Coupons are legal certificates offered by manufacturers and retailers. They
grant specified savings on selected products when presented for redemption at the
point of purchase. Manufacturers sustain the cost of advertising and distributing their
coupons, redeeming their face values, and paying retailers a handling fee. Retailers
who offer double or triple the amount of the coupon shoulder the extra cost. Retailers
who offer their own coupons incur the total cost, including paying the face value. In
this way, retail coupons are equivalent to a cents-off deal. Manufacturers disseminate
coupons in many ways. They may be delivered directly by mail, dropped door to door,
or distributed through a central location such as a shopping mall. Coupons may also
be distributed through the media—magazines, newspapers, Sunday supplements, or
free-standing inserts (FSI) in newspapers. Coupons can be inserted into, attached to,
or printed on a package, or they may be distributed by a retailer who uses them to
generate store traffic or to tie in with a manufacturer's promotional tactic. Retailer-
sponsored coupons are typically distributed through print advertising or at the point of
sale. Sometimes, though, specialty retailers or newly opened retailers will distribute
coupons door to door or through direct mail.
CONTESTS/SWEEPSTAKES
 The main difference between contests and sweepstakes is that contests require
entrants to perform a task or demonstrate a skill that is judged in order to be
deemed a winner, while sweepstakes involve a random drawing or chance contest
that may or may not have an entry requirement.
 At one time, contests were more commonly used as sales promotions, mostly due
to legal restrictions on gambling that many marketers feared might apply to
sweepstakes.
 Furthermore, participation in contests is very low compared to sweepstakes, since
they require some sort of skill or ability.
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SPECIAL EVENTS
 According to the consulting firm International Events Group (IEG), businesses spend
over $2 billion annually to link their products with everything from jazz festivals to
golf tournaments to stock car races. In fact, large companies like RJR Nabisco and
Anheuser-Busch have special divisions that handle nothing but special events.
 Special events marketing offer a number of advantages. First, events tend to attract a
homogeneous audience that is very appreciative of the sponsors. Therefore, if a
product fits well with the event and its audience, the impact of the sales promotion
will be high. Second, event sponsorship often builds support among employees—who
may receive acknowledgment for their participation—and within the trade.
 Finally, compared to producing a series of ads, event management is relatively simple.
Many elements of event sponsorship are prepackaged and reusable, such as booths,
displays, and ads. Special events’ marketing is available to small businesses, as well,
through sponsorship of events on the community level.
PREMIUMS
 A premium is tangible compensation that is given as incentive for performing a
particular act—usually buying a product.
 The premium may be given for free, or may be offered to consumers for a
significantly reduced price. Some examples of premiums include receiving a prize in
a cereal box or a free garden tool for visiting the grand opening of a hardware store.
 Incentives that are given for free at the time of purchase are called direct premiums.
These offers provide instant gratification, plus there is no confusion about returning
coupons or box tops, or saving bar codes or proofs of purchase.
Other types of direct premiums include traffic builders, door openers, and referral
premiums. The garden tool is an example of a traffic-builder premium—an incentive to lure a
prospective buyer to a store. A door-opener premium is directed to customers at home or to
business people in their offices. For example, a homeowner may receive a free clock radio for
allowing an insurance agent to enter their home and listening to his sales pitch. Similarly, an
electronics manufacturer might offer free software to an office manager who agrees to an on-
site demonstration. The final category of direct premiums, referral premiums, rewards the
purchaser for referring the seller to other possible customers.
Mail premiums, unlike direct premiums, require the customer to perform some act in order to
obtain a premium through return mail. An example might be a limited edition toy car offered
by a marketer in exchange for one or more proofs-of-purchase and a payment covering the
cost of the item plus handling. The premium is still valuable to the consumer because they
cannot readily buy the item for the same amount.

CONTINUITY PROGRAMS
 Continuity programs retain brand users over a long time period by offering ongoing
motivation or incentives.
 Continuity programs demand that consumers keep buying the product in order to get
the premium in the future.
 Trading stamps, popularized in the 1950s and 1960s, are prime examples. Consumers
usually received one stamp for every dime spent at a participating store. The stamp
company provided redemption centers where the stamps were traded for merchandise.
 A catalog listing the quantity of stamps required for each item was available at the
participating stores.
 Today, airlines' frequent-flyer clubs, hotels' frequent-traveler plans, retailers' frequent-
shopper programs, and bonus-paying credit cards are common continuity programs.
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When competing brands have reached parity in terms of price and service, continuity
programs sometimes prove a deciding factor among those competitors.
 By rewarding long-standing customers for their loyalty, continuity programs also
reduce the threat of new competitors entering a market.
SAMPLING
 A sign of a successful marketer is getting the product into the hands of the consumer.
 Sometimes, particularly when a product is new or is not a market leader, an effective
strategy is giving a sample product to the consumer, either free or for a small fee. But
in order for sampling to change people's future purchase decisions, the product must
have benefits or features that will be obvious during the trial.
 There are several means of disseminating samples to consumers. The most popular
has been through the mail, but increases in postage costs and packaging requirements
have made this method less attractive.
 An alternative is door-to-door distribution, particularly when the items are bulky and
when reputable distribution organizations exist. This method permits selective
sampling of neighborhoods, dwellings, or even people.
 Another method is distributing samples in conjunction with advertising. An ad may
include a coupon that the consumer can mail in for the product, or it may include an
address or phone number for ordering.
 Direct sampling can be achieved through prime media using scratch-and-sniff cards
and slim foil pouches, or through retailers using special displays or a person hired to
hand out samples to passing customers.
 Though this last technique may build goodwill for the retailer, some retailers resent
the inconvenience and require high payments for their cooperation.
 A final form of sample distribution deals with specialty types of sampling. For
instance, some companies specialize in packing samples together for delivery to
homogeneous consumer groups, such as newlyweds, new parents, students, or
tourists. Such packages may be delivered at hospitals, hotels, or dormitories and
include a number of different types of products.

b) TRADE-ORIENTED SALES PROMOTIONS


 A trade sales promotion is targeted at resellers—wholesalers and retailers—who
distribute manufacturers' products to the ultimate consumers.
 The objectives of sales promotions aimed at the trade are different from those directed
at consumers.
 In general, trade sales promotions hope to accomplish four goals:
o Develop in-store merchandising support, as strong support at the retail store
level is the key to closing the loop between the customer and the sale.
o Control inventory by increasing or depleting inventory levels, thus helping to
eliminate seasonal peaks and valleys.
o Expand or improve distribution by opening up new sales areas (trade
promotions are also sometimes used to distribute a new size of the product).
o Generate excitement about the product among those responsible for selling it.
Some of the most common forms of trade promotions—profiled below—
include point-of-purchase displays, trade shows, sales meetings, sales contests,
push money, deal loaders, and promotional allowances.
POINT-OF-PURCHASE (POP) DISPLAYS
 Manufacturers provide point-of-purchase (POP) display units free to retailers in order
to promote a particular brand or group of products.
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 The forms of POP displays include special racks, display cartons, banners, signs, price
cards, and mechanical product dispensers.
 Probably the most effective way to ensure that a reseller will use a POP display is to
design it so that it will generate sales for the retailer. High product visibility is the
basic goal of POP displays.
 In industries such as the grocery field where a shopper spends about three-tenths of a
second viewing a product, anything increasing product visibility is valuable.
 POP displays also provide or remind consumers about important decision information,
such as the product's name, appearance, and sizes.
 The theme of the POP display should coordinate with the theme used in ads and by
salespeople.
TRADE SHOWS
 Thousands of manufacturers display their wares and take orders at trade shows. In
fact, companies spend over $9 billion yearly on these shows.
 Trade shows provide a major opportunity to write orders for products. They also
provide a chance to demonstrate products, disseminate information, answer questions,
and be compared directly to competitors.
 Related to trade shows, but on a smaller scale, are sales meetings sponsored by
manufacturers or wholesalers. Whereas trade shows are open to all potential
customers, sales meetings are targeted toward the company's sales force and/or
independent sales agents. These meetings are usually conducted regionally and
directed by sales managers. The meetings may be used to motivate sales agents, to
explain the product or the promotional campaign, or simply to answer questions.
 For resellers and salespeople, sales contests can also be an effective motivation.
Typically, a prize is awarded to the organization or person who exceeds a quota by the
largest percentage.
PUSH MONEY
 Similarly, push money (PM)—also known as spiffs—is an extra payment given to
sales-people for meeting a specified sales goal.
 For example, a manufacturer of refrigerators might pay a $30 bonus for each unit of
model A, and a $20 bonus for each unit of model B, sold between March 1 and
September 1.
 At the end of that period, the salesperson would send evidence of these sales to the
manufacturer and receive a check in return.
 Although some people see push money as akin to bribery, many manufacturers offer
it.
DEAL LOADERS
 A deal loader is a premium given by a manufacturer to a retailer for ordering a certain
quantity of product. Two types of deal loaders are most typical.
 The first is a buying loader, which is a gift given for making a specified order size.
 The second is a display loader, which means the display is given to the retailer after
the campaign.
 For instance, General Electric may have a display containing appliances as part of a
special program. When the program is over, the retailer receives all the appliances on
the display if a specified order size was achieved.
TRADE DEALS
 Trade deals are special price concessions superseding, for a limited time, the normal
purchasing discounts given to the trade.

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 Trade deals include a group of tactics having a common theme—to encourage sellers
to specially promote a product.
 The marketer might receive special displays, larger-than-usual orders, superior in-
store locations, or greater advertising effort. In exchange, the retailer might receive
special allowances, discounts, goods, or money. In many industries, trade deals are the
primary expectation for retail support, and the marketing funds spent in this area are
considerable.
 There are two main types of trade deals: buying allowances and advertising/display
allowances.
o BUYING ALLOWANCES A buying allowance is a bonus paid by a
manufacturer to a reseller when a certain amount of product is purchased
during a specific time period. For example, a reseller who purchases at least
15 cases of product might receive a buying allowance of $6.00 off per case,
while a purchase of at least 20 cases would result in $7.00 off per case, and so
forth. The payment may take the form of a check or a reduction in the face
value of an invoice. In order to take advantage of a buying allowance, some
retailers engage in "forward buying." In essence, they order more merchandise
than is needed during the deal period, then store the extra merchandise to sell
later at regular prices. This assumes that the savings gained through the buying
allowance is greater than the cost of warehousing and transporting the extra
merchandise. Some marketers try to discourage forward buying, since it
reduces profit margins and tends to create cyclical peaks and troughs in
demand for the product. The slotting allowance is a controversial form of
buying allowance. Slotting allowances are fees retailers charge manufacturers
for each space or slot on the shelf or in the warehouse that new products will
occupy. The controversy stems from the fact that in many instances this
allowance amounts to little more than paying a bribe to the retailer to convince
them to carry your company's products. But many marketers are willing to pay
extra to bring their products to the attention of consumers who are pressed for
time in the store. Slotting allowances sometimes buy marketers prime spaces
on retail shelves, at eye level or near the end of aisles. The final type of buying
allowance is a free goods allowance. In this case, the manufacturer offers a
certain amount of product to wholesalers or retailers at no cost if they
purchase a stated amount of the same or a different product. The allowance
takes the form of free merchandise rather than money.
o ADVERTISING ALLOWANCES An advertising allowance is a dividend
paid by a marketer to a reseller for advertising their product. The money can
only be used to purchase advertising—for example, to print flyers or run ads in
a local newspaper. But some resellers take advantage of the system, so many
manufacturers require verification. A display allowance is the final form of
trade promotional allowance. Some manufacturers pay retailers extra to
highlight their display from the many available every week. The payment can
take the form of cash or goods. Retailers must furnish written certification of
compliance with the terms of the contract before they are paid. Retailers are
most likely to select displays that yield high volume and are easy to assemble.

DEVELOPING A SALES PROMOTION PLAN

SETTING OBJECTIVES
A. Goals are generally demand-oriented.
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B. They may be related to channel members and to consumers.


1. Channel-member sales promotion objectives include gaining distribution,
receiving adequate shelf space, increasing dealer enthusiasm, raising sales, and
getting cooperation in sales promotion expenditures.
2. Consumer sales promotion objectives include boosting brand awareness,
increasing product trials, hiking average purchases, encouraging repurchases,
obtaining impulse sales, emphasizing novelty, and supplementing other
promotional tools.
CHARACTERISTICS OF SUCCESSFUL SALES PROMOTION
Some aspects that are important to consider in marking sales promotions successful are as
follows:
1. Maximum effect at minimum cost: when the nature of promotion objective is such
that is can best be achieved by sales promotion, rather than advertising alone, and the
objective is achieved at minimum cost.
2. Motivates consumers to buy now: successful sales promotions induce a sense of
urgency to buy now and avoid postponing purchases.
3. Offers what the consumers want: sales promotion must not attempt to push any offer
that is not regarded as desirable by target consumers.
4. The promotion should be clear and uncomplicated: simple and clear language must
be used in communicating with the consumers.
5. Promotion should be highly visible: the offer must draw attention of target
consumers. Effective promotions draw attention from high visibility and from creative
qualities.
6. Promotion should benefit all concerned: usually promotions involve cooperation of
sales force and channel members. They need to be motivated to make the efforts
successful.
7. Promotion must be believable and honest: it makes reasonable and believable
claims, tells the truth, there are no exaggerations, and it respects public’s intelligence.
8. Promotion must be legal: the marketers must check the legality of promotion before
announcing it.
9. Promotion must be implemented efficiently: proper arrangements must be made with
handling houses and premium suppliers to avoid any complications.

SALES PROMOTION EVALUATION


Measurements of results, in any are of business activity, is related to the objects that are
set. The sales promotion can be evaluated at three different stages:
1. Pre-testing: how sales promotion is to be communicated and what would be
communicated to the target groups is important and can be pre-tested. Pre-testing
consists of experimenting certain markets or individual stores in a market. The
simplest way is to visit several important retailers and wholesalers and discuss the
programme and seek their opinion and suggestions.
2. Concurrent Testing: this testing is done when the sales promotion is in progress.
Concurrent testing is conducted in terms of sales data, which can be obtained on
weekly or monthly basis.
3. Post-testing: post-testing done after the promotion period is over. To asses the
change in consumer awareness and attitude, telephone calls, questionnaire mailed
to consumers, and personal interviews can be used.

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To measure the sales effect, sales figures before the promotion period can be compared with
figures at the end of promotion, and one month after the promotion ends.

DESIGN AN INTEGRATED SALES PROMOTION PROGRAM


Design an integrated Sales Promotion Program for the following channel of
distribution: Manufacturer-to-Independent Sales Rep-to-Retailer-to-Consumer

A new product in a mature category, such as LIME COKE


Background Information
The cola market is a mature market with lots of variety. Consumers are trying new and
innovative products. There’s strong growth in bottled water, juices, sports drinks and energy
drinks. Consumers are conscious cola drinkers; they are calorie conscious especially in their
20s and 30s. The Lime Coke is a new product in the market. Sprite, Coca-Cola’s ‘solid’
performer continues to be a great success as a strong competitor to this new product.
The nature of product is revolutionary; it should create emotional connection with the
consumers. The Lemon Cola drinkers, driven by youthful liberation, relate to life’s more
light-hearted and fun experiences. It is a drink of choice for people who are younger and
more exciting.
Objectives
New distribution of Lime Coke products through the channel distribution by motivating top
20% of the Manufacturer’s independent salespeople to move more Lime Coke products to
Retailers in order to generate an ultimate 40 to 50% sales during the Christmas season by
attracting consumers.
Channel Distribution Strategy
The distribution system has only two divisions (Independent Sales Rep and Retailer) before it
reach the consumer.
The product is new in a matured market, needs additional explanation and education for the
sales reps to have that carried over to the retailer to gain maximum consumer exposure in this
dominant market position.
There is a competitor product such as Sprite, certainly, there is a competition for distributor
resources in order to get attention. The channel function will only be selling, inventory
support, physical distribution and post sales services.
Promotion Mix
Trade Promotions for Retailer’s – objective is new product distribution
SELL-IN Devices
Encourage wholesalers or retailers to carry Lime Coke product. Free good deals- Give free
packs of Lime Coke instead of money at no cost. Off-allowance or Buying allowance – is a
good option for this new product, retailers have an opportunity to stockpile the products at the
reduced price to sell at the regular price latter. The allowance is deducted directly from the
invoice of the product
SELL-OUT Devices
Induce retailers to promote Lime Coke through advertising and displays. Cooperative
advertising- since this is a new product and competitive market, it makes sense to have long-
term contract with the retailer. The retailer will run advertisement and manufacturer pays an
allowances based on the quantity and retailer orders . Dealer listing – Great opportunity to
have manufacturer to place advertisement in different medias ( TV, radio, magazines or news
papers) for the Lime Cola product and announcing the retailers (name and addresses) who
stock Lime Coke.
Incentive to ‘PUSH’ sales

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Stimulate retailers and their channel members to ‘push’ Lime Coke product rather that of
competitor product e.g. Sprite. Spiffs will be a great compensation for the retailer store clerk
rewarded for selling Lime Coke. Dealer Loader – the purpose is to gain new product
distribution, gifts in return for an order or premium for special price display.
Motivation the Independent Sales Rep (Sales Promotion) to supplement their regular
compensation- Sales Incentive plans (reward for achieving sales Quota) and sales aids in
combination to assist sales persons in selling situations.

Various Aspects under Promotional Strategy


Deciding Promotional mix:
Personal selling, advertisement and sales promotion are methods of the promotional
methods. During most of the situation two or more promotional methods are to be used
for each campaign. Advertising needs the support of personal selling or display to
increase the sales.
Nature of the product:
This will decide the promotional mix. For consumer goods advertisement and dealer
display will have more effect. Industrial goods with high technology will need much of
personal selling and cosmetics.
Nature of the customer:
If the communication are mostly to middlemen, then personal selling will be more
effective and very little spending on advertisement will do. If information are to be
passed to consumers and when the number of consumers is large, it is better to advertise.
Nature of Market:
If market for a product is only local then personal selling alone will be sufficient. If the
market for a product is available at national level, then advertisement is more suitable.
Availability of funds:
The amount of funds available for promotion will decide the promotional mix. The
companies having huge funds for promotion will favor advertisement and try to cover
wider market. If the funds are available are less than maximum portion and such funds
will be allocated for personal selling in limited areas.

ONLINE SALES PROMOTION:


Encourage impulse buys:
Associate linked products. If a customer buys a video game, ask if he’d alswo like to buy
some batteries, games or other peripherals. Those are items the customer may forget to
purchase of might to expire not realize are available.
Offer online - only specials:
Many web users prefer to gather information about products online. They visit a few sites
to get an idea of what’s available and at what cost. But they don’t complete the sales
online instead, many log off and head directly for nearest brick mortar store to make their
actual purchase.
Ship larger orders for free:
it doesn’t take much more time and effort to pack and ship 5 items than to pack and ship 1
item. Its more efficient for you to pack more items in each order. So give customers an
incentive to purchase more at one time.
Be honest about pricing:
People want to know the total price to deal with. Raise your profit margin and encourage
larger orders form. Most users will leave a site without completing their purchase if the
site doesn’t show total cost including shipping.
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Provide great customer service:


You don’t want onetime customers. It takes far more effort to attract new customers than
it does to keep existing ones. That simple concept seems to be forgotten in these days of
anonymous email and the torture of automated phone system.
Create compelling website copy:
Website design is an important component of website credibility, but design only takes
you so far. Visitors quickly note the design, but then look for content. Format your
content to reflect how people read online and consult the copy writer’s handbook for
instruction on how to write persuasive.
Have complete product information and photos:
Information pages
Create thumbnail images
Use gift to optimize images

Internet Advertising
Internet advertising is the convergence of traditional advertising and direct responses
marketing.The use of the Internet for delivering marketing messages to attract customers.
Features:
Very immature industry
Rapidly growing but poorly understood
Traditional advertising
 One way communication
 Targeting can be difficult
 Public dissemination of information in order to effect
 Commercial transactions
Internet advertising
 Potential for two-way communication
 Targeting is much easier
Why Advertise on the Internet
Television viewers are migrating to the Internet
The Internet is the fastest growing medium in history
Attractive demographics
Adverts can be updated rapidly and cheaply
Adverts can be global
Internet advertising is cheap in comparison with most
Conventional media
Adverts can be targeted
 If a person sees and advert that they don’t want to see, then that advert
has failed.
 Targeting avoids this, but is traditionally expensive
DoubleClick (www.doubleclick.net)
Dynamic Advertising Reporting and Targeting (DART)
DART builds a profile of visitors to any of DoubleClick’s
clients sites
 data mine server logs
 attach a unique ID to people who visit any of their sites
 match user sites against a database of known domains
 extract platform information
 build a personal profile of interests
Internet Advertising Advantages
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Targetability
Global reach
Tracking ability
Less expensive to produce
Flexibility and rich media combination
Immediacy
Interactivity
Disadvantages
Customer-dominated environment
A cognitive, not emotional medium
Psychological fear of IT
Limited space and information in some formats
Connection problems
Non internet users
Clutters

Types of Internet Advertising


WWW Banners
Graphic display on a web page linked to the advertisers page
Types of banners
 random banner
 keyword banner
Economics
 Banner purchase (charge may be based on display or click-
through)
 Banner swapping
 Banner exchange
Design issues
 Advertisers requirements are rarely compatible with the
design requirements of the host site
Spot Leasing
Some sites provide a space on their site that can be leased for a given period of time
Unlike banners spot adverts = are always displayed for the duration of the lease
Not targeted, so only effective on extremely high traffic sites (e.g. major search engines)
Extremely expensive for high traffic sites
Pop-ups, rich media ads, interstitial
 Pop-ups: Appear on screen without user calling for them
 Pop-unders: Open underneath user’s active browser window and do not appear
until user closes active window
 Rich media ads: Employ Flash, DHTML, Java, streaming audio and/or video
 Interstitials: Provide way of placing a full-page message between current and
destination pages of user
 Superstitials: Rich media ad that is pre-loaded into browser’s cache and does not
play until fully loaded and user clicks to another page.
E-Mail
 E-mail marketing messages sent directly to interested consumers who “opt-in” or
have not “opted-out”
 Mailing Lists -
o Very low cost

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o Easily amenable to targeting


 Very effective when solicited and carefully targeted
 Utterly ineffective when not carefully targeted
 Unsolicited e-mail (spam) is a serious form of network abuse
URL
A memorable URL can be a powerful advertising tool in its own right
www.lastminute.com
www.student.com
www.yahoo.com
www.hotmail.com
Much of the associated advertising is free (e.g. search engine listings)
Well chosen URLs are self targeting
URLs can be valuable commodities in their own right.
Chat Room Sponsorship
IRC chat rooms are commonly used by groups sharing a specialist interest
Hobbyists
Political activists
Self-help groups
Chat servers are often sponsored by advertisers
usually the sponsors provide the server as a “service” to the target community
For example Mattel sponsored Barbie chat rooms(!)
Search Engine Marketing
 Search engine marketing one of fastest growing and most effective forms of online
marketing communications
 Paid inclusion – firms pay for inclusion in search engine index
 Paid placement – firms pay for a guarantee that it will appear prominently in results of
relevant searches
 Overture.com and Google leaders in this technology
 Appropriate disclosure of paid inclusion and placement practices an issue

JARGON:
 Impressions (ad view) : Number of users exposed to an advert
 CPM : Cost per thousand impressions
 Effective Frequency : The number of times a user is exposed to an advert
 Hit : A recorded HTTP request for delivery of a file
This is not the same thing as impressions
 Visit : A series of requests made by a user to a site in one session
 Click Through : When a user follows a link to the advertisers page
 Click Ratio : The proportion of impressions that result in click through

UNIT –IV

Personal selling is a direct communication process of selling. It is the only component of a


marketing promotional mix that includes two-way communications in which a sales representative
tries to assist or persuade prospective buyers to purchase his company’s merchandise. It involves
communication of a customized message to a prospective customer by a sales man, usually in the
form of face-to-face communication, direct mail correspondence, or a telephonic conversation. It has
the unique feature of communication flexibility, i.e. the seller can comprehend the prospective buyer’s
reactions and modify the message accordingly right on the spot.
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Objectives of Personal Selling


The main goals of building personal selling strategies are normally:
 identifying prospects,
 persuading prospects to buy,
 Making customers satisfied,
 Building strong customer relationship.

Along with these above-mentioned goals of personal selling, the selling organizations do have other
short term or long term objectives depending upon the company's promotional objectives, such as
 To perform the complete selling jobs: The main objective of personal selling is to convince
customers to make a purchase, acting as the only element in the sales promotion. It facilitates creating
interest in the product by building complete awareness of product. The interaction with the prospects
make the seller realize the peculiar interest and demand of the consumer and that enables him to
persuade the customer to respond by buying.
 To discover and identify new prospective targets: Along with maintaining relationship with
existing customers, another objective of personal selling can be to identify new targets by
understanding their needs and decision processes. This can

be done by communicating directly with them and trying to recognize their expectation from the
company’s products and make efforts to satisfy them.
 To ensure and build customer’s cooperation: It is the task of personal selling to keep existing
and prospective customers informed about the modifications in existing product, educate them about
changes in the product line for maintaining their interest in current stock and promoting the existing
and new product line by keeping customers satisfied and loyal to the company’s products.
 To guide customers in making their buying decision: It also comes under the objectives of
personal selling to providing technical advice and assistance to customers in case of sophisticated and
digitalized products and where goods are generally designed on the basis of target's specifications to
make their buying decision rationally and well informed.
 Build long-term relationships with customers: It is the responsibility of sale representatives to
build long-term relationships with customers. A strong relationship can only be built by maintaining
regular communication with a customer. This can be done by having meeting with customers on a
regular basis, discussing the company’s products and giving them the assurance of delivering the best
and make them feel important.
 Apprise customers of modifications and latest innovations: The sellers also inform the existing
customers about the company's products, the latest technological up gradations and modifications in
the product thereby strengthening customers’ knowledge of what the company has to offer. And in the
process they are made the new prospects. This happens because of the strong relationships built
earlier.
5. Nature of Personal Selling
Personal selling is a systematically arranged and specialized body of knowledge and is a part of any
curriculum on marketing. It is both science and art. It is a science based on human psychology. The
psychology of the customers has to be studied to gain knowledge about their behavior. The salesmen
must have knowledge about the different parameters of consumer behaviour and should also possess a
systematic knowledge of goods he has to sell. It is a science since salesman should follow certain
basic principles, techniques and approaches for concluding a sale and satisfying the customer.
Personal selling is not a pure science as it is based on human relationship that is not perfect. The
application of science or sales principles and techniques is based on situation faced by a particular
salesperson.
It is coined as sales art or sales skill. A salesman must have selling skills and must possess real interest
in his profession. The art requires patience and application of correct methods. Thus the salesman
must thoroughly master the science and the art of personal selling. Thus the Personal Selling is a
science of developing harmonious personal relations and an art of communicating with people
effectively so that sales resistance on the part of consumers can be minimized. The personal selling
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task demands a variety of responsibilities. The personal selling area is constantly evolving as the
marketing environment itself evolves. This is how any social science should behave on a constant
evolution, changing in accordance with the changing needs and environment. In the present scenario,
Personal selling moves through the following five stages for a successful deal:

Personal Selling offers the following advantages:


1. Facilitates two-way interactions: The ability to interact with the receiver allows the sender to
determine the impact of the message. Problems in comprehension or objections can be resolved with
in depth discussion of certain selling points immediately. In other sources of promotional mix this
direct feedback is not available and such information cannot be obtained immediately.
2. Tailors the message: Because of the direct communication, messages can be designed as per an
individual consumer. This more precise and tailored message content lets the seller address the
specific customers’ concerns, problems and needs. The sales representatives can also identify when to
start with the next selling point complete the sale or close the deal.
3. Lack of distraction: In many personal selling situations, an individual presentation is conducted so
the buyer is generally paying close attention to the sales messages as a result of which distractions are
minimized.
4. Assistance in the buying decision process: Through interactive communication and relationship
marketing, the seller can assist buyers in his buying decision

process, acting in the cooperation with the buyers to solve their problems. This enables the buyer to
have more faith on the salesperson and his or her merchandise.
5. Source of research information: In a well-integrated and effective marketing department the sales
representatives can be the “eyes and ears” of an organization. Sales representative can gather
information about available competitors’ products and services, promotional, pricing strategies, and so
on. In addition they can learn about the buying needs and desires of their existing and prospective
buyers and enable the organization to have competitive advantage.
Thus personal selling helps in sales promotion. It is very important to manufacturers and traders
because it helps them to establish direct contacts with the prospective customers, develop personal
support with customers and sell their products which facilitates the business to gain permanent
customers which is the basic purpose of any business.

Limitations of Personal Selling


Like any other marketing tool, personal selling is also not free from its disadvantages. Though its
advantages are more effective but still it has some disadvantages that can be explained as follows:
 High cost: It is time and money consuming as approaching to each and every target individually
requires lot of time and efforts on the part of the salesman. And to cover huge targets, the employment
and training of large numbers of salesman are required which may prove to be very expensive in case
of mass communication.
 Limited coverage: Personal selling cannot cover large number of targets as covered by other
elements of promotional plans like advertising. It is suitable for small target groups.
 Inconsistent message: As we discussed that flexibility of tailoring the message as per the target’s
demand is the advantage of personal selling but sometimes it bring inconsistency in the messages
designed by sales managers. They design messages keeping in mind some communication objective
like what is to be disclosed to targets but sometimes untrained salesman can alter the message to
communicate something which may not be ethical or in the interest of the firm. Like in big housing
project some sales representatives may make a false commitment of providing good discounts or any
other benefits to the client that is not actually offered by the
company, just to make a sale of a flat. Later on, when customer would realize the fact a negative
image of the company would get developed in the mind of that customer.

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Thus personal selling is an effective tool of marketing but it should be used in coordination with other
tools of marketing to overcome its limitations by bringing transparencies in the messaged
communicated by salesmen, widening its coverage with the use of advertising along with personal
selling.

Functions of Salesman
Personal selling involves much more than just selling products and services. Its aim is to provide
satisfaction to the targeted customers by offering them value addition and want satisfying products
and thus generate revenue and profits for the business. Thus Salesman is goal oriented.

To attract customers for the business: A salesperson is supposed to attract customers to buy the
firm’s merchandizes. This will lead to increase in sale. New customers may be attracted through
proper interaction or by providing full information about the product by distribution of samples,
displays of products etc.

To satisfy the needs of the consumers: Modern marketing aims to recognize and meet the needs of
the customers. He has to study and identify the demand of targets before offering them any goods or
services by asking them directly about their expectations. Like a Eureka Forbes sales representative
generally starts their conversation with the client by asking for a glass of pure water and then testing
the purity of available water with their instrument. On the basis of their result of purity of water they
start introducing their product like for hard water they can offer RO and for soft water they can offer
and demonstrate the utility of different models of aqua guards to the clients to satisfy their demand for
pure water. Thus the identification and satisfaction of the customers’ needs is more important as
compared to selling the goods or services. A salesman is always ready to handle the objections of the
customers.
3. To generate revenue: The sale personnel are largely responsible for executing the firm’s marketing
plan of actions in the field to generate the revenues that are to be managed by the financial people and
used by the production department. It is the main responsibility of a salesman to generate revenue for
its company by winning trust of large number of consumers for his products and by converting
prospective buyers into loyal customers of his company. Generally they are assigned specific targets
to achieve and they have to persuade prospects in such a manner that those targets can be achieved.
4. To generate adequate profits for the business: He is also responsible to generate sufficient profits
as a result of sale of value addition products to the target consumers as it is needed for the growth and
survival of the firm.
5. To earn goodwill for the business: He also attempts to develop the public image of firm in the
market. He tries to raise the goodwill of the business by initiating image building activities such as
sales promotion, true advertisement, high quality, reasonable price, customer’s services etc. If a firm
enjoys goodwill in the market, it will increase the morale of its sales force also as a result of which
they will be willing to show greater loyalty and develop a true sense of service to the customers. This
will further increase the reputation and image of the business.
6. Salespersons represent their company to customers and society in general: Salespeople are
primarily responsible for providing information on customers’ needs and problems to the various
departments in their own firms. Opinions of the firm and its products are developed on the basis of
impressions made by these people in their work and outside activities. The public ordinarily does not
judge a company by its factory and office workers, as they do not interact with them.
Thus the role of salesman is to put emphasis on selling satisfaction and not merely on selling goods as
product is developed and produced to satisfy the needs of the consumers. It should be viewed as an
integrated process of identification, assessment and satisfaction of human wants.

The personal selling process consists of a series of steps. Each stage of the process should be
undertaken by the salesperson with utmost care. The stages in personal selling are briefly explained
below.

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1. Prospecting and qualifying: ‘Prospecting and qualifying’ are the first steps the personal selling
process. This is to identify and qualify prospects in order to help sales people in the process of selling.
Companies generate leads in the following ways:

i. searching names by examining data sources such as newspapers, directories, CD-ROMs etc.
ii. establishing a booth at trade shows and exhibitions

iii. getting the names of the prospects from existing customers

iv. cultivating referral sources such as dealers, suppliers, sales reps, executives, bankers etc.

v. Getting the names of the prospects from organizations and associations

vi. Using the telephone, mail and the internet to find leads.

2. Pre-approach: Having found out the prospective customers, the salesperson should collect some
important details about the prospects. For example, if the prospect is a company, then he should know
what the company needs, who takes purchase decisions and who are its buyers.

After knowing the important particulars about the prospects, the salesperson should set call objectives.
The salesperson should qualify the prospect, collect information and make an immediate sale. He
should also decide on the best approach which may be a personal visit, a phone call or a letter. Besides
he should also decide on the timing of approach, based on the convenience of the prospects.

3. Approach: The salesperson should properly approach the prospects. He should know how to greet
the buyer before starting his conversation. The salesperson should be properly dressed which
coincides with the temperament of the buyer. The opening line should be positive.

For example, “Mr. Jacob, I am Rahim from Jeevan Company. My company and I appreciate your
willingness to see me. I will do my best to make this visit profitable for you”. The opening line must
pay importance to the buyer’s needs.

4. Presentation and demonstration: The sales presentation should be based on AIDA formula.In
other words, the presentation should gain attention, ho!d interest, arouse desire and obtain the action
of the buyer. Moreover, the salesperson should adopt FABV approach. This is a “features,
advantages, benefits and value” approach. Features narrate physical characteristics of a market.
Advantages describe why the features provide an advantage to the customer. Benefits explain the
economic, technical aspects and social benefits delivered by the offering. Finally, value describes the
overall worth in terms of money.

Sales presentation varies in style. There are three styles of sales presentation, namely,

a. canned approach,
b. formulated approach and

c. need-satisfaction approach.

Canned approach is memorized sales talk covering the main points while formulated approach
identifies the buyer’s needs and buying style and then uses an appropriate approach. The need-
satisfaction approach starts with a search for customer’s real needs. It encourages the customer to
talk of his own needs.

5. Overcoming objections: Customers when pressed for orders, voice their objections known as
customer’s resistance. The resistance of the customers may either be psychological or logical.

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Psychological resistance includes resistance to interference, giving importance for well established
brands, apathy, impatience, reluctance to participate in the talk, unpleasant situation created by the
salesperson, aversion towards decision making, etc.

Logical resistance is based on some reasons associated with price, delivery schedule; product or
company characteristics, etc. Salesperson should overcome these objections by adopting a positive
approach. He must convert the objections into reasons for buying. Handling and overcoming
objections are the most important part of sales process.

6. Closing the sale: A goods sales talk results in clinching a sale. At this juncture, the salesperson
closes the sale at the right moment. A salesperson can successfully close the sale by studying the body
language and the statements made by the buyers. They can ask for the order by drawing the attention
of the customers towards colour, size or type of the product. If the buyers remain undecided, they may
be guided in making the choice of the product.

7. Follow-up and maintenance: Immediately after closing the sale, the salesperson should take some
follow up measures. He may give details about delivery time, purchase terms and mode of payment of
price, etc. The salesperson can ensure customer satisfaction by properly attending matters which are
important to the customers. Thus, follow up is necessary if the salesperson wants to ensure repeat
purchase.

UNIT -V
Meaning an d Definition of Public Relations
A public is any group that has an actual or potential interest in or impact on a company’s
ability to achieve its objectives. Public Relations (PR) involve a variety of programs/events
designed to promote or protect a company's image or its individual products.
Public relation is the way organisations, companies and individuals communicate with the
public and media. A Through public relations companies communicates with the target
audience directly or indirectly through media with an aim to create and maintain a positive
image I and create a strong relationship with the audience. Examples include press releases,
newsletters, public appearances, etc. as well as utilisation of the World Wide Web. According
to Public Relations Society of America (PRSA), "Public Relations (PR) help an organisation
and its publics relate to each other to the benefit of both". According to Indian Institute of
Public Relations, "Public relations practice is the planned and sustained effort to establish and
maintain goodwill and mutual understanding between an organisation and its public".

Characteristics of Public Relations


The characteristics of public relations are as follows:
1) Objective: A good public relations campaign will have a clear objective. In theory this
could simply be toraise awareness of a product, service or brand, but ideally it will be more
specific. This could include a company increasing sales of a product or a pressure group
changing public or government behaviour. A specific objective not only makes it easier to
focus the planning and execution of a campaign, but also to quantify its success.
2) Message: Public relations require a clear message for the organisation to communicate. A
good rule of thumb is to make the message as clear and concise as possible without losing
precision or risking ambiguity. Ideally the message will not just inform the audience of a
particular fact or viewpoint but will spur them into taking a particular action.
3) Targeting: Public relation campaigns occasionally target the entire population but usually
need to target a specific group For a membership group, this could be potential members. For
a campaign group, this could either be potential activists and supporters, or it could be people
in authority with the ability to make decisions that promote a cause.
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4) PR is Generally a Relatively Low Cost Form of Communication: Apart from nominal


production costs, much public relations activity can be carried-out at almost no cost, in
marked contrast to the high cost of buying space or time in the main media.
6) Relatively Uncontrollable: An organization can have little direct control over how. Its
public relations activity is interpreted and handled. The company cannot control whether the
press release is printed in full or not as well as the time or place of the release. At the worst
case, the press release may be misinterpreted and its result can be very unfavorable
7) Saturation of Effort: The fact that many companies compete for an amount of media
attention puts pressure on the public relations effort to be better than its competitors. There
cannot be guarantee that the PR activity will have any impact on the targets at which it is
aimed.

Objectives and Goals of Public Relations


1)Building Product Awareness: When introducing a new product or re-launching an existing
product, marketers can use a PR element that generates consumer attention and awareness
through media placements and special events.
2) Creating Interest: Whether a PR placement is a short product article or is included with
other products in "round-up" article, stories in the media can help to entice a targeted
audience to try the product.
3) Providing Information: PR can be used to provide customers with more in depth
information about products and services. Through articles, collateral materials, newsletters
and websites, PR delivers information to customers that can help them to gain understanding
of the product.
4) Stimulating Demand: A positive article in a newspaper, on a T.V. news show or
mentioned on the Internet, often results in a discernable increase in product sales.
5) Reinforcing the Brand: In many companies the pubic relations function is also involved
with brand reinforcement by maintaining positive relationship with key audiences, and
thereby aiding in building a strong image. Today it is ever more important for companies and
brands to build a good image.
6) Promote Goodwill: One of the simplest and most straight-forward objectives of PR
campaigns i s to enhance company's goodwill with its market. Goodwill means a generally
positive rapport with the communities in which one does business. Having this strong
connection helps drive customers to business and also aids in building long-term loyal
relationships with key customers. Getting involved in community activities and participating
in charitable programs are common techniques to promote goodwill with the community.
7) Change Attitudes: Sometimes referred to as attitudinal change objectives, PR campaigns
can have a purpose of improving or reshaping customer attitudes about brand. Companies
that struggle with negative perceptions in the market often use public relations to promote a
message of community involvement, charitable giving or product benefits for the common
good. Public relations can sometimes serve better with this objective because when a
company pays to build its image, audiences understand the message and it is less subtle than
some PR efforts.
8) Inform: Though information PR objective often coincide with more direct business
benefits, many PR efforts have a direct goal of informing audiences. For example, a
consulting company may send oct weekly email newsletters to offer free advice to businesses.
The hope is that regularly staying in front of customers with messages that are useful will
help to maintain top-of-mind awareness. Plus, providing free and useful information can
generate positive sentiments from the market.

Scope of Public Relations


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1) Employees Relations: It may be important to communicate with employees on issues such


as job security, working conditions, and the state of the market. Staff will inevitably hear
things that may affect them from other sources, and public relations can seek to provide an
authoritative view on these issues, through the use of in-house publications; newsletters, and
employee recognition activities.
2) Suppliers Relations: These may need assurances that a company is a credible one to deal
with and that contractual obligation will-be met. Highlighting favourable annual reports and
drawing attention to major new developments can help to raise the profile and credibility of a
company in the eyes of its suppliers.
3) Intermediaries Relations: These may share many of the same concerns as customers and
need reassurance about a company's capabilities. Are a firm's intermediaries showing
commitment to a particular line of business? What new product develops .mean/mode is
being considered that may raise the morale of intermediaries?
4) Government Relations: In many cases, actions of government can significantly affect the
fortunes of an organisation, and therefore relationships with government departments - at
local, national, and international level - need to be carefully developed. This can include
lobbying of members of Parliament, and communicating the company's views to government
inquiries and civil servants.
5) Financial Community Relations: Capital is the backbone of any business and the
company's demand for capital is fulfilled by the investors and the creditors. The creditors
constitute a bigger group who affect the decisions of investors and other public in big way.
The creditors can be categorised into:
i) Development Banks, e.g., IDBI, ICICI, HDFC, BIFR, SFC, FPCI etc.
ii) Insurance companies (various plans)
iii) Mutual funds, e.g., commercial Banks, UTI, LIC etc.
Financial community includes financial institutions that have supported, are currently
supporting, or may in future-support the organisation. Shareholders, both private and
institutional, form an important element of this community and must be reassured that the
organisation is going to achieve its stated objectives.
6) Local Communities/Pressure Groups Relations: The corporate world is a social
phenomenon. For this reason the corporate community cannot afford to be indifferent towards
the society. Here the ethics and moral duties come into play. The practice of the corporate
social responsibility is regarded as the PR task where the company undertakes the activities
outside its scope of business existence. It is sometimes important for an organisation to be
seen as a 'good neighbor’ in its local community. The organisation can enhance its image
through the use of charitable contributions, sponsorship of local events, being seen to support
the local environment, and so on.
7) Consumer Relations: The consumer culture has spread awareness about the consumer
rights and the companies have intensified efforts to satisfy customers. Consumer
organisations also work on their toes to redress consumer grievances while the companies
are legally bound to serve in the interest of customers. The PR executives, therefore, gear
themselves to achieve consumer satisfaction. A deeper understanding of the. factors affecting
the attitude of consumers, conveying the outcomes to the personnel, production,
marketing and related departments while simultaneously persuading the management to adapt
to the consumer demands in terms of image, quality, price,' availability etc., remains prime
areas of PR functioning.
8) Media Relations: As powerful opinion-formers, members of the media represent an
important audience. Public relations activity seeks to create a favourable predisposition by
this group, which will then be passed on to the other audiences identified above.

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Elements of Public Relations


Public relations have divergent parts. According to the Public Relations' Society of America,
the elements of public relations include the following: "
1) Counselling: Providing advice to the management of an organisation concerning policies,
relationships and communications; in effect, "what to do".
2) Research: Determining attitudes and behaviours of publics and their causes in order to
plan, implement and measure activities to influence or change the attitudes and behaviour.
3) Media Relations: Relating with communications media in seeking publicity or responding
to their interest in an organisation.
4) Publicity: Disseminating planned messages through selected media without payment to
further an organisation's interest.
5) Employee/Member Relations: Responding to concerns and informing and motivating an
organisation's employees or members, its retirees and their families.
6) Community Relations: Continuing, planned and active participation with and
within a community to maintain and enhance its environment to the benefit of both an
organisation and the community.
7) Public Affairs: Developing effective involvement in public policy, and helping an
organisation adapt to public expectations; also, term used by military services and some
government agencies to describe their public relations activities.
8) Government Affairs: Relating directly with legislatures and regulatory agencies on behalf
of an organisation, usually by military services and some government agencies to describe
their public relations activities.
9) Issues Management: Identifying and addressing issues of public concern in which an
organisation is, or should be, concerned.
10) Financial Relations: Creating and maintaining investor confidence and building positive
relationships with the financial community; also, sometimes known as investor relations or
shareholder relations.
11) Industry Relations: Relating with other firms in the industry of an organisation and with
trade associations.
12) DevelopmentlFund Raising: Demonstrating the need for and encouraging an
organisation's members, friends, supporters and others to voluntarily contribute to
support it.
13) Minority Relations/Multicultural Affairs: Relating with individuals and groups in
minorities.
14) Special Events and Public Participation: Stimulating an interest in a person, product or
organisation by means of a focused "happening"; also, activities designed to enable an
organisation to listen to and interact with publics.
15) Marketing Communications: Combination of activities designed to sell a product,
service or idea, including advertising, collateral materials, publicity, promotion, packaging,
point-of-sale display, trade shows and special events.

Functions of Public Relations


Following are the key functions of public relation as an aid to overall marketing objectives of
a firm:
1) Media Representation: Representing a company or individual to the media is one of the
more well-knownfunctions of public relations. Media management includes developing and
distributing both written and video news releases, pitching stories to journalists and
responding to reporter inquiries. Depending on the organisation, spokesperson duties may

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also be handled by the public relations department. Media representation also includes,
monitoring and measuring news coverage of the organisation or individual.
2) Crisis Communication: Crisis communication is a plan developed. by a public relations
team typically includes determining specific logistics for expected reporters, the designation
of an official spokesperson for the crisis, the development of targeted messages for internal
and external' audiences and training for company leadership on how to handle tough or
hostile' questions.
3) Content Development: Preparing documents, written and electronic, are another function
of public relations. Examples of content developed by a public relations department include
company newsletters, blogs, speeches and annual reports. Content may also be written for
another member of the company, such as a letter to employees from the CEO. Often, a public
relations department will work with another department to ensure a project fits with an
overall company message.
4) Stakeholder Relations: Stakeholders are any persons or groups who have an interest in or
could be affected by an organization’s objectives or actions. Representing an organization to
stakeholder groups is another function of public relations.
5) Social Media Management: Establishing, monitoring or growing an organisation's or
individuals online presence is another function of public relations. Specific tasks may
include creating or updating facebook pages, tweeting information and keeping an eye on
what others are saying in cyberspace about an organisation.
4.1.7. Types of Public Relations
Depending on the type of audience/publics it serves, public relations can be categorised
into the following types:
1) Corporate Public Relations: Corporate PR activities are aimed at maintaining cordial
relations and gaining the goodwill of various internal and external stakeholders who may
influence the well-being of the organization in the long-run. The target audience of corporate
PR includes employees, shareholders, general public, government, trade unions, financial
institutions and media. Each of these types of PR is discussed below:
i) Internal PR: Internal PR deals with all internal communications- with the employees on an
organisation. This is very important as employees are important stakeholders of an
organisation and securing their support for the mission and policies becomes crucial for the
organisation's success in the long-run. Employees act as an interface between the organisation
and its external publics; therefore, their. ability and willingness to implement the
organisation's policies will make or break the organisation's future.
ii) Public Affairs: Public affairs deal with establishing cordial relations with governments,
regulatory authorities and local communities. The major objective of PR is to- garner the
support of these publics towards the various activities or projects undertaken by the
organisation. The effectiveness of public affairs depends on the PR department's ability to
monitor and analyse the trends in government policies and the changing attitudes of the
general public towards the issues that are of interest to the organisation.
iii) Financial PR: Organisations deal with a variety of financial institutions, either to raise
funds or get consultancy about various financial issues. Financial PR handles organisations'
relations with banks, shareholders, investors and other groups that influence their decisions.
Financial PR is more crucial for organisations that are listed on stock exchanges, which
stipulate stringent disclosure rules.
iv) Media PR: Media plays a major role in influencing and directing public opinion.
Therefore, organisations try to maintain cordial relations with various media like radio,
television and other trade related press. Media PR strives to achieve objectives like creating
awareness, developing and holding goodwill and at times changing the attitudes of people
with the support, of the media.
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2) Marketing Public Relations: Marketing PR complement the various marketing activities


that are aimed at improving the sales of an organisation's products among retail consulters or
institutional clients. Marketing PR is aimed at commercial stakeholders like suppliers,
distributors, competitors and customers. Marketing. PR aims at securing media coverage for
various marketing related activities like product launches and platinum disc celebrations. It
uses tools like cultural and sports sponsorships, special events, media relations, trade shows
and publications.

Process of Public Relations


It is not enough to know what public relations are and what purposes it serves. To practice
public relations, one must understand the process by which public relations operates. Public
relations go far beyond the task of producing messages. An effective public relations effort is
the result of mutual understanding between an organisation and its publics. The development
of this understanding can be regarded as a four-step process:
Step 1: Research: An initial fact-finding stage defines the problem areas and differentiates
between publics.
Step 2: Planning: Once the facts have been gathered from the various publics, decisions
must be made' regarding their importance and potential impact on the organisation. After
these decisions are made, strategies must be developed to enable the organisation to achieve
its goals.
Step 3: Action and Communication: Strategies are implemented as new organizational
policies and/or projects. Messages are then constructed to reach target publics.
Step 4: Evaluation: Once a public relations campaign is developed and implemented, it
should be followed by an evaluation of its effectiveness in meeting the criteria that were set.
The results of the evaluation are used both to assess the effectiveness of the effort and
to plan future action. As an important business function and an integral part of business
policy, public relations in modern business practice is getting very important role in the
coordination of communications and promotional activities of the organisation. At the same
time, public relations programmes almost always .have communications and promotional
goals and objectives, and thus gain an important place in the promotional mix of the
company. In addition, the goals, means, techniques used and the ultimate effects of the
activities of public relations and other promotional activities often coincide, very difficult to
accurately separation and determination of place in communications and promotional mix.
Considering the fact, differently interpreted the relationship business functions of public
relations to promote, and therefore the relationship of this function to certain types of
promotions in the promotional mix of the organisation.
For example, some authors consider the' promotion of a network of communication that
includes a number of marketing instruments - economic advertising, sales promotion,
adjusting sales, publicity, public relations, packaging, design, customer service and
propaganda "by word of mouth".
Bearing in mind that public relations in addition to promotional goals includes a number of
other specific targets, and other public organisations in the target environment, many authors
agree that they representa much broader concept of promotion, and that cannot be considered
just a form of promotion, such as advertising publicity. The effects of promotions, in modem
conditions, are increasingly becoming dependent on the degreeof achieved coordination of
promotional activities in the communications and promotional mix with other instruments, of
marketing mix. Thus, professional public relations became the main carriers of complet
communication programmes and also receive a coordinating role promotion-and other
marketing tools in the marketing mix of companies. In this way, public relations "go out"
beyond the concept of marketing mix and promotional mix. Their close relationship with
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other business functions in the company impliesa multidisciplinary approach to the


management and requires consistent coordination with other business functions.

PR Tools and Techniques


1) Press, Radio and TV Media Relations: Historically the core of public relations, media
relations, include all efforts to publicise products or the company to members of the press -
TV and Radio, newspape magazine, newsletter and Internet. In garnering media coverage, PR
professionals work with the mediato place stories about products, companies and company
spokespeople. This is done by developing interestin and relevant story angles that are pitched
to the media. It is important to remember that media placemen come with good stories and no
payment is made to the media for placements.
2) Media Tour: Some new products can be successfully publicised when launched with a
media tour. On a media tour a company spokesperson travels to key cities to introduce a new
product by being book on TV and radio talk shows and conducting interviews with print and
Internet reporters or influencer (for example, bloggers). The spokesperson can be a company
employee or someone hired by the company, perhaps a celebrity or "expert" who has
credibility with the target audience. One common use of the media tour is the book tour,
where an author travels the country to promote a newly release book.
3) Newsletters: Marketers who have captured names and addresses of customers and
potential customers can use a newsletter for regular contact with their targeted audience.
Newsletters can be directed at trade customers, '[mal consumers or business buyers and can
be distributed either by regular mail or electron means (i.e., e-newsletters delivered via email
or rss feed). Marketers using newsletters strive to provide content of interest to customers as
well as information on products and promotions. A bookstore ma include reviews of new
books, information on online book chats and information on in-store or online promotions.
4) Special Events: These run the gamut from receptions to elegant dinners to stunts. Special
events can be designed to reach a specific narrow target audience, such as individuals
interested in college savings plan to major events like a strawberry festival designed to
promote tourism and regional agriculture. Stunts, such as building the world's largest ice
cream sundae during National Ice Cream month captures the attention of an audience in the
immediate area, but also attracts the attention of mass media such as TV news and major
newspapers, which provide broad reach.
5) Sponsorships: Companies and brands use sponsorships to help build goodwill and brand
recognition by associating with an event or group. Marketers can examine sponsorship
opportunities to find those that reach target groups; fit within a specified budget and provide
sponsorship benefits that suit the marketer's' objectives. There are numerous local, regional,
national and international sponsorship opportunities ranging from a local art centre or theatre
to the Olympics. Most organisations seeking company sponsors provide information on the
variety of sponsorship levels which will elude data , On event audience, exposure
opportunities, which can include signage, Tshirts, public announcements and numerous other
opportunities, receptions and much more.
6) Employee Communications and Relation: For many companies communicating regularly
with employees is important in keeping employees informed of corporate programs, sales
incentives, personnel issues, as well as keeping them updated on new products and programs.
Companies use a variety of means to. communicate with employees, including Intranet,
email, online and print newsletters. In larger firms an inhouse PR department often works in
conjunction with the Human Resources Department to develop employee communications.
7) Opinion Building: Developing websites has long been a time-consuming and often overly
technical undertaking for the 'vast majority of marketers. But this changed with the evolution
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of easier to use site development applications which allow for quick creation and convenient
updating of' site content. Additionally, the move toward easier to use website software has
changed the purpose of having a presence on the Internet. Where previously the main
objective of a website was for advertising, delivering information and e-commerce, ,the web
now serves as a platform for people to voice their opinions.
8) Market Monitoring: Monitoring' public comment, about a company and its products is
becoming increasingly important especially with the explosion of information channels on
the Internet. Today monitoring includes watching what is written and reported in traditional
print and broadcast media and also keeping an eye on discussions occurring through various
Internet outlets such as forums, chatrooms, blogs and other public messaging areas.
Marketers must be prepared to respond quickly to erroneous information and negative
opinions about products as it can spin out of control very quickly through the new technology
channels.
9) Customer Service: Customer service is the provision of service to customers before,
during, and after a purchase. Customer service is a series of activities designed to enhance the
level of customer satisfaction- i.e., the feeling that a product or service has met the customer
expectation.
Customer service is normally an integral part of a company's customer value .proposition.
Public relations have a particular responsibility for dissatisfy customers, who-might tum into
hostile publics if they are not treated appropriately. Many companies encourage customers
and other stakeholders to call a toll-free number with complaints and concerns. This is unique
information that needs to be shared broadly in the organization.

PR and Media Relations


Public relation is the art and science of connecting and communicating with all of the various
publics with whom an organisation may have a relationship. For example, different publics
may include - employees, customers, government, industry, investors, shareholders,
communities, general public, vendors, suppliers, members, donors (in the case of charities),
and the media. This list is not definitive and each organisation needs to identify the different
publics with whom they have relationships. Media relations is the interaction with reporters,
journalists and editors in print (newspaper and magazines) electronic (radio and television
stations), and online (bloggers) media in order to communicate the company's/client's
newsworthy messages,stories and information,
The main difference between media and public relations is that the term media relations is
more limited. While public relations may include dealing with the media to some degree,
media relations is a specialty. Therefore, those in strictly media relations positions will spend
their time fielding calls from the media, identifying and "spinning" relevant news items, as
well as writing press releases in an effort to keep the media informed about what is happening
at the company. Depending on the desire of the company for free publicity, this could be a
very busy position.
In fact, the demands of the media can be such a. specialised field that some companies focus
exclusively on this type of work. These media relations companies work with clients to get
their names out and generate positive publicity. If a crisis or negative event does hit the
company, these compaqies can also help by providing the media with .a place to go where
they know they can find the correct information. This', it helps the client by providing a
centralised source that is not contradictory.
A public relations professional will do more than just deal with the media. In fact, a public
relations person may not deal with media at all if the company decides to split its media and
public relations segments into separate entities. In such as case, a public relations person may
be responsible for outreach and serve as a liaison at special events, help plan those events,
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and even write a company newsletter so that employees can stay informed about what is
happening.

 Opinion Survey of PR in Public and Private Enterprises


Public relations is often misunderstood by many people to mean protocol issues, handing
money to media people, sweet stories that mean nothing and aboveall, beautiful dressing.
However, public relations is far more than that. In a company, public relations involves
attitude and practice; first, is the attitude of the company to its publics; and second, the
practice of public relations in the company by experts who are specialised in the art and
science of public communication. Both company attitude and the practice of PR by the
relevant professionals are critical in achieving the desired objectives for 'the enterprise. The
critical evaluation and survey is done to signify the value of PR in public and private sector. -

PR in Public Enterprises
It is a true that a number of public enterprises in India have been running in staggering losses
and are not performing to the expectations of the nation. And, there are well known and
unidentified reasons for this. Yet it is undisputable that the public enterprises as a corporate
sector have made a tremendous contribution to the various aspects of Indian industry and
economy. The public sector of India has been working as a great catalyst for the economic
growth of the nation. The public enterprise units have made new life possible to the
underprivileged millions in the backward regions of the sub-continent. Public sectors have
also made praiseworthy contribution to the society, as they have always operated on the
philosophy of 'social-good'. But. the public sector does not enjoy a fair image among people
in general. It is criticised day in and day out for its inefficiency, lack of dynamism and
avoidable waste of material resources of the nation. The political system and the bureaucracy
constantly use their powers for vested interests.

 Criticisms of PR in Public Enterprises


1) Image of Public Sector: The study discovered that all those concerned with the
management of public sector units feel that there is an urgent need to improve the public
image of public sector. The public has to be educated to the basic objectives and priorities of
the public sector. There is an increasing consensus in public enterprises managements about
the need of this popular education. The public sector exists for social gains and strategic
value rather than for mere considerations of profit and commercial surpluses, is the crux of
this popular education.
2) Ineffective Utilisation of Public Relations Skills: The study tried to evolve perspective
that public relations is an important tool of public sector management. A sustained effort to
build-up an image of the public sector organisations and also to maintain mutual
understanding between these organisations and their publics is the need of the hour. The study
found that public enterprises in India are not utilising public relations skills and techniques in
an effective and productive manner.
3) Lack of Financial Powers: The study discovered that public relations officers find it
difficult to function due to lack of financial powers and budgetary allocations. Most of them
look at the chief of HR or Marketing for approvals on PR activities. Austerity drives are too
frequent in public enterprises and every time it is the meager budget of the public relations
department on which the axe falls. Delegation of powers in organisations does not empower
PR officers effectively.
4) Lack of Recognition: The management were found wanting in giving adequate
recognition to public relations activities in their overall functioning. The Chief Executive is
expected to give directions to the public relations officers as per public relations theories. But
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practically in PSlJs the chief executives find themselves busy in boundary management,
responding to the minister and the bureaucracy of the ministries or the meetings of senior
management groups. Also, most of these enterprises have public relations officers at much
junior level in the organograms. Naturally, they are not involved in decision-making. This
leaves very little opportunity for the public relations practitioner to be fully aware of the
pulses of the organisation, the problems and the management strategies.
5) Lack of Understanding of PR at the Top: It was confessed by a majority of the
respondents of the study in reference that the chief executives being technocrats, are often
shaky in facing the media. They are found reluctant to make statements, which could be
interpreted differently causing annoyance to the ministry or the minister. Their silence on
major and critical issues gives birth to speculations and suspicions wherein the press
correspondents find an opportunity to file negative stories based on hearsay or statements
made by unconcerned and uninformed people against the public enterprise management. The
chairman, directors and other officials of the companies need exposure to media management
training programmes to prepare them to face media with confidence and the required
techniques. .
6) Government Media: The study confirms the fact that government media, which includes
a wide network of All India Radio, Doordarshan, DAVP, Song and Drama Division, Films
Division, Field Publicity and Press Information Bureau, could play an important role in
projecting the achievements and problems of the public enterprises in India. But this
government media has Dot been fully mobilised to gain popular support. Consequently, the
public sector problems remain without reasonable solutions, especially in the areas where
public cooperation is essentially required. There is also scope of improvement in the
coordination between public sector, public relations and the government media. Government
media should be able to present public sectors in right perspective.
7) Media Bias: The big businesses and industries basically control press in India. As a
traditional supporter of private sector, this press maligns the public sector or tends to
underplay the achievements of the public sector. The axiom that "public sector failures are
news while failures in private sector are private affairs which people should ignore" was
found correct. This popular conviction was repeatedly confirmed by the analysis of the data
randomly collected for the study from the field.

PR in Private Enterprises
Most private companies underestimate the importance of good corporate public relations.
Surprisingly, even some public companies do not feel its that important. A good brand name
takes time and careful planning to develop, but once established, a brand name is a valuable
asset. It increases the value of the company and the reputation of the products that it sells.
Good brand name recognition and a respected product are invaluable to a company. In the
world of product marketing, it is obvious that a company needs to make sure as many people
as possible know about their company. Although not the plan or intention of the company
conducting its corporate PR, this activity often increases the company's chances of raising
capital when the need arises. Corporate PR can indirectly assist a company with its funding
raising goals. Of course, that is not really the main reason to have a good corporate public
relations plan.
Almost all large organisations either have a public relations department or outsource
their public relations needs to a company. Public relations are seen as a vital part of
maintaining the organisation's image and of communicating its message to its customers,
investors and the general public. A positive perception of a company or non-profit can
increase its sales and improve its bottom line.

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Functions of PR in Private Enterprises


The functions and key tasks of a public relations specialist can be varied. They are:
1) Public Image Strategy: Public relations strategists will work with top executives in the
organisation to craft an overview of how the company wants to be perceived, and how it is
going to project a positive image. This can involve focusing in on exactly the right message,
and then deciding on the broad outlines of a campaign to disseminate that message.
2) Outreach Events: Public relations professionals often arrange events to raise the profile of
the organisation or lend its brand and name to a charitable event that represents the
philosophy of the company. Think of a corporation sponsoring a Special Olympics event, or a
hospital organising a health outreach day in its town.
3) Media Relations: Talking with the media is a core function of public relations
departments. Public relations professionals field questions from reporters, arrange for
interviews with key individuals in the organisation and write press releases to make the media
aware of company events or achievements.
4) Social Media: One emerging function of public relations is to maximise an organisation's
positive use of social media to build its image. Managing a Twitter feed, a Facebook page and
a YouTube channel are all vital ways to connect with possible new customers or stakeholders.
Monitoring public comment about the organisation on the internet can also give PR
professionals early warning of any emerging trends or problems.
5) Handling Emergencies: Sometimes a company or organisation is struck by a disastrous
event that ruins its public image. This might be an oil company that has to deal with a high
profile spill, or a food company that has a contamination event. Public relations professionals
decide how the organisation will repair the damage to its image, communicate how it is
dealing with the problem and re-gain control of its message.

Budgeting of PR
Nothing goes for free, so also effective PR, does not come cheaply. Certainty of programmes
and sellable ideas invariably ease the task of costing campaigns. An adequate budget is
essential to achieving optimal results. The organisation must, therefore, benefit and get
maximum returns from Its spending. Whether the PR Unit is given a particular budget to
work with or asked to submit a proposal, a reasonable, reliable and achievable cost should be
made.
Once the objective of the programme, the audience, message, channels of communication and
activities are identified, it is easier to make a realistic budget. A realistic plan of action must
be presented together with the cost of each activity. Unless a budget was once presented and
succeeded, the need to maintain, increase or decrease it should be related to the financial
position and projects of the organisation.

The major areas of costing in PR include prints and production,. exhibition, workshops and
seminars, media briefings and conferences, advertising, transportation, sponsorship,
supplements and media coverage. Most activities can have fixed costs of expenses, including
taxes and services but a mandatory contingency not exceeding 15% of total cost must be
added for any unexpected eventualities. This may be necessary because there is a clear
distinction between direct cost and indirect cost. For example, a hall booked for an hour for
press briefing may extend to three or more hours, while an entertainment provision for the
briefing of a number of journalists may witness additional attendance of some of them
coming with their crews. A good budgeting plan may address the problems, objective, public,
strategy, media, message and anticipated result. There should also be a timeframe for each
budgeted activity. But it must always be known that the budget estimate by an in-house PR
department must be slightly different from that of outside consultants. This may be so, since
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in-house practitioners will not consider such expenses on salaries and equipment, which may
be at their disposal.
Sometimes, some programmes are better handled by the in-house or consultation on the
demand of the non- specific aspects of the programme. For example, while a 'Consultant may
demand for a consultancy fee and hiring of equipment, the inhouse may only request for cost
of maintenance of such equipment where available. It is expected that a well equipped in-
house PR Unit must have such facilities as video, photo camera, public address system, T.V.
and video machine for viewing and editing, computer, tel/fax, e-mail and other relevant tools.
But the consultants may need to charge for the hiring or the use of such equipment, which
may be additional burden to an ill equipped PR department.

Types of PR Budget
Types of PR budget are as follows:
1) Consultancy Budget: The charges for consultancy services vary from one organisationto
the other. But specifically for a long-time PR campaign, the considerations for the budget
include advisory fees which are charged after the firm has accepted the service. The
consultants. charge the expenses to cover the days or hours of attending meetings, its research
and the submission of the report. Another area is the implementation of the plan. Some in-
house staff may take up this stage unless if the consultant is given the responsibility of
implementing the plan as it is recommended in the report submitted. The cost value may
come in different forms. It may be the cost of single or combination of production cost, travel
expenses, hotel accommodation, refreshments, man-hour and unit price of items and
materials to be used.
2) In-House Budget: The in-house PR practitioner submits annual budget which, after
consideration, the fund involved is released quarterly or monthly to the office to carry out its
activities. Some programmes which are periodical or exceptional and extraordinary are
funded at the appropriate time. On the need, request may be made from the approved budget
estimate to take care of events and programmes as they unfold. The illustration below is a
typical annual budget for a big organisation that has large audiences. The' proposals are in
two parts. The first part is the budget defence, while the second part is the breakdown of the
request for consideration and approval.
3) Budget Defence
i) Publications: This is to cover the cost of production/publication of monthly bulletin, yearly
handbook, quarterly magazine, seasonal cards and complimentary cards. ii) Corporate
Items: This is required for the production/procurement of corporate items such as pocket
diaries, executive diaries, calendars and address books. These items will be used as presents
or gifts to individuals and organisations as a form of reciprocation for promoting the
organisational statues, as well as seek goodwill from the recipients.
iii) Media Activities: The amount is needed for extensive media campaign and image
building. These are in the areas of media chat/courtesy calls, press conference
hosting/entertainment, research, editing, publications of articles, video coverage editing and
dubbing, photo coverage/album and entertainment for media reception. It will also include
exhibitions and sponsorships.
iv) Equipment: The sum is required for the purchase of relevant equipment for the office
such as photocopiers, cameras, consumables (video cassettes, films, albums, inks, etc.) and
maintenance and services of media equipment. The essence is to enhance the output of the PR
Unit.
v) Advertisement: The amount is to cover expenses for the placement of adverts on issues
that concern the organisation in the print and electronic media, and to also cover the ~ost of
documentaries and live events in the electronic media, including interviews, among others.
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vi) Editorial Board Meeting: The fund is for providing the entertainment, materials. And
incidental expenses for the meetings of the editorial board.
vii) Information Technology: In its drive to show a high level of integrity and commitment
to the public, the unit should introduce a timely and efficient way of information
dissemination through modem and advance technology. All publications and activities will be
displayed in the website for the public to access. These will include press releases, feature
articles and profiles of the management. It will also contain handbooks, magazines and-
pictures of activities in specified pages on the Internet. The amount would therefore cover
website development, e-mail installation/internet connection, web hosting, domain name
registration, internet usage training and technical support/maintenance.
viii) Human Resources Management: The amount is needed to keep personnel in the unit
up to date in the field of public relations and information technology. The areas include
training in financial public relations and modem media techniques, professional seminars,
conferences and workshops in media management and Annual Dues and Membership of
Professional bodies, i.e., NIPR, NUJ, IPR, etc.

Advantages of Public Relations


Key importance that public relations bring to marketer is given below:
1) Credibility: Public relations enjoy credibility. Basically, public relations
communications tools tend to be believed primarily because these tools do not necessarily
appear as advertisements, especially the tools that appear as stories or articles in the media. In
short, readers, listeners and viewers assume that the media's journalists have gathered the
information and written the stories or articles, not a public relations practitioner.
2) Low Cost: Public relations communications tools typically enjoy low cost. These tools do
not cost as much as advertisements or commercials to produce. Nor do these tools cost a lot
when they appear in the media, especially the tools that sent to media personnel for
consideration. In fact, only a few forms of public relations tools appear in media as a result of
the client paying a fee.
3) Not Compete in Other PR Tools:
compete with other public relations tools, Public relations tools do not necessarily primarily
because these communications usually appear as stories or articles. Unfortunately,
advertisements and commercials have to compete with other advertisements and commercials
in the media.
4) Effective: Public relations communications tools can be effective in developing a positive
image in the minds of various publics for a product, service or whatever else a client wishes
to address.

Disadvantages of Public Relations


Public relations have a few limitations too. These include the following:
1) May Not Appear in Media: Pubic relations communications tools may not-appear in
media, especially the tools that are merely sent to media personnel for consideration.
2) Incapable to Link Message: Public relations communications tools may be read, seen or
heard, but members of the intended public may not link the messages to the client

Structure of Public Relations Department


Public relation in India is practiced in most of the organisations broadly through three
systems. Some corporations engage public relations agencies while others have an in-house
public relations department and others go for both the systems. Each system has its own
advantages and disadvantages. They are:
1) Internal Communications / In-house Public Relations Department,
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2) External Communications / Public Relations Consultancy

Internal Organizational In-House PR


Many industrial houses, government departments, public sector undertakings have set-up in-
house public relations departments within their own organisations. Qualified public relations
and communication professionals are handling these departments. Appointing an in-house
public relations director is becoming common' factor among large corporations such as the
Lffe Insurance Corporation of India, the Videsh Sanchar Nigam Ltd., Reliance Industries,
etc., and such organisations have realised the need to communicate effectively and creatively
with the public and their workforce.
The advantages of in-house are obvious not least the fact that the public relations manager is
on one hand most of the time to respond immediately to management's briefings, and by
being involved day-to-day in the organisation operations can be totally familiar with all
developments taking place in all the areas lending themselves to promotion of corporate
goals.

Advantages of Internal Organizational-House PR


The advantages of internal organisation/in-house PR are as follows:
1) Sense of Job-Security: In-house PR people tend to be more settled and less inclined to
change jobs than their agency counterparts. The longer the PR staffs remain in post, the better
they get to know the company and the better they become at applying their skill and
experience to the company's PR operation. They can also be briefed on long-term product or
sales strategies, and play a role in the business and marketing , planning cycles attached to
these. Some companies are reluctant to involve agency staff to this level.
2) Cost Effective: An in-house PR operation can be viewed as highly cost-effective, if
compared with what an agency's fee would be for a similar service. .".."
3) Infuses Loyalty: Another important point in favour of in-house PR is that the PR
department's main loyalty is to the company. Agency executives, on the other hand, must
serve their agency first and their clients second. The PR manager's main concern is his or her
company's PR, arid the efficiency of the department.
4) Greater Accountability: Inevitably, in-house PR departments are more accountable than
agencies, simply because they are part of the company. There is not much scope for sharing
the blame when things go wrong. Agencies rarely blame themselves, or point to weaknesses
in their operations.
5) Effective Quality Control: Quality control is also easier through an in-house operation.
All written material, including letters to key people, can be controlled so that
communications are clear and correct. Telephone calls to journalists and other opinion
formers, such as MPs, can also be monitored, although, in practice, it is probably only to
the extent of adhering to an agreed style or approach.

Disadvantages of Internal Organisationl In-House PR


Following are the disadvantages of internal organization/in-house PR:
1) Over-Burdened Staff: The major problem with internal organisation/in-house PR is that
the department tends to become a dumping ground for a whole range of assorted marketing
functions. PR staff can end up doing everything from organising exhibition stands and
writing speeches for senior management, to supervising the production of brochures and
doing all the legwork for the company's customer entertainment day. This results in the staff
becoming overstretched, and the company's PR service could start truffer. '
2) Relies on Reactive Approach: Some in-house PR operations tend to become purely
reactive. Rather than taking the initiative with PR, the staffs simply respond to media
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enquiries when they come through, and otherwise lurch from one crisis to the next. 3)
Limited Scope for Creativity: Another disadvantage is that company PR staff can become
stale and lose their creative cutting edge. In an agency, 'there are normally plenty of ideas
flying around between' executives who are constantly having to switch from one client to the
next. This is a natural breeding ground for creativity. However, in a company, PR people are
always in a tiny minority, and it is hard for them to be imaginative.
4) Less Efficient Service: In-house PR staff tends to find it difficult to operate to its full
professional ability. Company issues and considerations tend to overwhelm the corporate PR
managers and sometimes they operate more as general managers than PR specialists. As one
PR manager said - 'You tend to become sucked into the company and evolve more as a
manager than a PR specialist. As an account director in a PR agency, I had far more
credibility as a PR professional than I do now. I cannot remember the last time somebody
here asked me for real PR advice.'

External Organisation-PR Consultancy- PR Agencies


Other organisations which had no in-house public relations departments are taking the help of
either advertising agencies or public relations agencies for their communication activity.
Public relations consultancy/agency/firm is an independent specialised business organisation
involved in the practice of public relations to counsel the client's organisation on
communication and relationships management besides executing public relations
programmes. It has creative and communication professionals to handle the client's public
relations activities. Public relations consultancy is not an agency like advertising agency.
Advertising agency is an agency of the media from whom it gains its income in the form of
commission on the space and air time that the agency buys. The advertising agency procures
business for the media. The accredited advertising agencies to the Indian Newspapers Society
not only get credit facilities for payment, but also get 15 per cent commission from the media.
Therefore, the advertising agency is a commission agent for the media.
A public relations consultancy is an organised and specialised professional body in the art and
science of public relations to render advice on public relations matters, besides undertaking
the implementation of public relations programme on behalf of the client. The public
relations firms derive income, not through commission from the client but from professional
fee charged based on man-hours and expertise.

Need of PR Consultancy
Public relations consultancies are usually employed for the following reasons:
1) If the organisation concerned is not big enough, financially or otherwise, a PR consultancy
is needed to justify its own PR department.
2) If the company policy lays down that all public relations is handled externally.
3) The organisation needs specialist services.
4) To supply a media-relations service..
5) To plan and execute a public relations programme.
6) Convenience - If an organisation has several offices a consultancy can provide centrally
based services for organising functions such as press launches, conferences and receptions.
7) To handle 'one-off' assignments.
8) To provide specialist services such as house journal production, corporate or financial
public relations and parliamentary PR sponsorship. -
9) Because management needs counselling on short-term communication problems, requiring
a report and recommendations.
10) To provide a media relations service.

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11) To provide a central information service. To plan and execute a complete public relations
programme.
12) To organise press conferences, receptions and facility visits.
13) To handle ad hoc assignments.
14) To provide specialist PR services, e.g., crisis management, corporate identity
schemes.

Job roles in External PR Consultancy


Job roles will naturally vary from organisation to organisation, and the hierarchy outlined
here may not always be in place. The following is a general overview of the roles in PR
consultancies:
1) Company Director: He is owner of the company, will control strategic direction of
company.
2) Associate Director: He will undertake all aspects of strategic account direction,
relationship management ..and business development for the company.
3) Account Director: Account director plans, organises and directs day-to-day operations of
a department. Will develop strategic client proposals and finalise client budgets. They are
accountable for the whole team and ensuring client satisfactory and retention. One of the
principal roles of an account director is to secure new business from existing and potential
clients.
4) Account Manager: He will run an account with a team of account executives. Their job is
to be the principal point of contact for the client and to develop client proposals and ensure
the implementation of plans. They will manage the client budget. They are also expected to
manage and mentor other members of staff.
5) Junior/Senior Account Executive: An account executive works within a wider team of
people on client accounts; it is possible that they will work on several client accounts at any
one time.
Tasks can typically involve:
i) Liaising on a daily basis with clients and the media.
ii) Media relations.
iii) Monitoring the media, including newspapers, magazines, journals, broadcasts, newswires
and blogs, for opportunities for clients.
iv) Preparing regular client reports and attending client meetings.
v) Collating, analyzing and evaluating media coverage
vi) Event management, including press conferences and promotional events.
vii) Attending and promoting client events to the media.
viii) Commissioning market research.
6) Account Assistant: This is an entry-level position and the role is to support the teams.
Tasks can typically involve:
i) Research.
ii) Maintenance and creation of media lists and editorial calendars. iii) Database
management.
iv) PowerPoint presentations. v) Maintenance of photo files.
vi) Press kit assembly and distribution. vii) General administrative duties.

Types of PR Consultancy/Agency/Firm
Broadly speaking, PR consultancies fall into one of the following categories; the largest.
consultancies will offer all four services:

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1) Consumer PR Consultancy: The biggest category by far. Consultancies assist clients,


design and implement campaigns to promote a brand, products or services to customers.
Often companies will have links with other marketing activities such as advertising. Their
main target is consumers - the people who buy the products or services - and PR activity is
likely to be supporting marketing campaigns. The communications will be one-way in order
to try and persuade consumers to take a course of action.
2) Financial PR Consultancy: Financial PR consultancies manage a company's reputation
among financial journalists, analysts and-investors. They work with Public Companies
(PLCs) on announcing annual results and also in specific situations, such as stock market
flotation, takeover battles, and mergers and acquisitions. Their communications are targeted
at financial audiences.
3) Lobbying and Public Affairs PR Consultancy: Companies, public bodies and charities
will get advice from lobbying consultancies on how to put their. case to governments,
politicians and local councils. Lobbyists will alert their clients to political and regulatory
issues that could affect and assist them in mapping out the political landscape.
4) Corporate Communications PR Consultancy: Cuts across several disciplines and
involves elements from all the above. Corporate communications is about protecting a
company’s overall reputation rather than promoting products or services.
5) Business -to-Business (B2B) PR: Effective internal communication can work alongside
B2B PR since it can help to make their staff 'brand ambassadors’ as they deal with suppliers
and customers. B2B PR deals with industry and trade titles; although there are a smaller
number of titles and readers, overall they are more targeted publications and
so have greater influence than readership figures might indicate.
6) Digital/technological PR: This encompasses the need to explain technological innovations
either to other organisations or the general public, and the promotion of online businesses. It
may include specialisms in Search Engine Optimisation (SEO) and social outreach
programmes.
7) Fashion PR: It has the same focus as consumer PR in that it aims to build relationships
between a company and its existing and potential customers. However, it specialises in
promoting fashion brands, whether they are designer or retail.
8) Not-for-Profit PR: This includes third sector organisations such as charities and voluntary
organisations, and they can range in size from local community groups to large national
organisations. Communications strategies for charities are vital as they must connect with
both public and stakeholders as a means of survival, be it for a volunteer drive for staff or as a
means of raising money to continue their work. Third sector organisations also often have to
be effective at lobbying. With charities, PR professionals have to draw up particularly
creative campaigns that the public can identify with, as there is so much competition for their
donations and 'compassion fatigue' can become an issue. Charity work is strongly associated
with ethical and moral behaviour

Pros of PR Consultancy/ Agency/Firm


The pros of PR consultancy are given below:
1) Independent Service: While an advertising agency may always project positive side of
the organisation with glorification, a public relations firm is paid to be objective and criticise
in its analysis of the organisation. The advice of a public relations firm can be positive and
negative based on objective assessment.
2) Long and Varied Experience: A public relations firm handles many clients of various
industries. As such it gains a lot of experience of various organisations. Experience is gained
in areas such as print, production, film or audio-visual production, exhibition, institutional

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advertising, media relations, financial shareholder relations, market research, planning,


budgeting and executing, evaluation of public relations programmes.
3) Ease of Termination: If the performance of a public relations firm is not satisfactory, it is
easy for the organisation to terminate the contract by giving due notice,
4) Flexible Service: The key benefit is that one can have a flexible PR service without having
to make a long- term commitment. There are no staffs to hire, no in-house PR department to
run and no capital outlay to make. Then if the company wants to step up its PR activity, it can
spend more with the agency - it wants to slow things down, then it can cut the budget.
5) Greater Control: To some extent, the company can control who works on its account. It
may not be able to pick and choose, but it can ask for individuals to be taken off the team if it
is particularly unhappy with any of them.
6) Specialized Service: Many agencies have specialist expertise in certain industries and
market sectors. One should be able to find an agency that has proven experience of the
market, thus ensuring that the executives on one's account will already have some
understanding of the business.
7) Beneficial in Uncertain Situations: Using an agency is an ideal solution if one is a
sceptic. Perhaps you are not sure about the real value of PRo You would like to try it out, to
see how it works. By hiring an agency, you can set-up an arrangement for a trial period.
However, as we have seen, PR takes time to produce results, so give your account team
atleast six months to show you what they can do.
8) Better Quality of Service: Last, but by no means least, there is an unquantifiable benefit
of having the company's PR handled by professional purists, whose sole business is public-
relations. Agency executives learn a lot from each other and are constantly swapping ideas,
contacts and experiences. This should be reflected in the quality of advice, service and
creativity one receives.

Cons of PR Consultancy/ Agency/Firm


Following are the cons of PR consultancy:
1) Loss of Absolute Control: The major disadvantage is that one loses absolute control over
the public relations. The company is allowing an outside organisation to represent itself to the
media and other vital audiences. It will have little or no control over the day to- day dialogue
between its account team and these audiences.
2) Inherent Conflict between Practices: Arguably, there is an inherent conflict between the
business of running a successful PR agency and the professional practice of public relations.
PR is an imprecise discipline and one should not assume that there is a fixed relationship
between agency fees and PR results.
3) Attrition Rate: PR agencies "have an infuriating habit of using their most impressive and
most experienced executives solely to win and then 'bed down' new clients. Often companies
choose between agency presentations on this basis, only to find that a month after having
signed on the dotted line, they never see the front person again and are left with a couple of
trainee account executives and an over-stretched manager.
4) Rapid Changing of Members: Agencies are prone to changing the members of your
account team suddenly and without consultation. Obviously, they cannot help it if anyone on
your account chooses to leave and needs to be replaced.
5) Less Attention to Clients: Agencies and their account groups demand a great deal of
attention. Many clients complain that they have to drive their agency team, come up with all
the good ideas, re- write copy; so much so that they sometimes wonder why they bothered
having an agency in the first place.
6) Cost Consideration: Cost has already been cited as one reason for using a PR agency.
Paradoxically, it can also be flagged up as a drawback. Unless one specifies what he expects
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his agency to do over any given period, there is a risk that the account team will simply bum
up the agreed number of hours on speculative or unproductive tasks. One must be prepared to
put in the time needed to manage the agency.

PR Research
Research is a vital function in the process of public relations. It provides the initial
information necessary to public relations action and perform the important role of evaluating
its effectiveness. Management demands hard facts, not intuition or guesswork. Public relations
practitioners, like their colleagues in every area of management, must be able to demonstrate
convincingly their ability to "add value" in producing a product or service. The economic realities
of modem organisations make it necessary for public relations to incorporate data-gathering
techniques into every phase of the process. One specific major use of public relations research is
in issues management. The process of issues management, which has become major part of
public relations practice, must be informed at every stage by research data. The early
identification of issues that may impact a client or organisation is most thoroughly accomplished
through research methods designed to scan the environment for potential issues. Analysis to
determine which issues have the greatest possible impact requires various research methods
designed to determine both the strength of opinion about an issue and its perceived neutrality to
the client or organisation. Likewise, the selection of potential methods and actions available to
the researcher and the evaluation of action implementation can be detemlined through well-
planned research activities. .

Need for PR Research


Public relations professionals often find themselves in the position of having to convince
management to describe the importance. of research as, a crucial part of a departmental or
project budget. Research is an essential part of public relations management. Here is a closer
look at why scholars argued that conducting both formative and evaluative research is vital
in modem public relations management: -
I) Two-way Communication: Research makes communication two-way by collecting
information from publics rather than one-way, which is a simple dissemination of
information. Research allows us to engage in dialogue with publics, understanding their
beliefs and values, and working to build understanding on their part of the internal workings
and policies of the organisation. Scholars find that two-way communication is generally more
effective than one-way communication, especially in instances in which the organisation is
heavily regulated by government or confronts a turbulent environment in the form of
changing industry trends or of activist groups.
2) Strategic Decision-Making: Research makes public relations activities strategic by
ensuring that communication is specifically targeted to publics who want, need, or care about
the information. Without conducting research, public relations is based on experience or
instinct, neither of which play large roles in strategic management. This type of research
prevents us from wasting money on communications that are not reaching intended publics or
not doing the job that researcher had designed them to do.
3) Effective Utilisation of Funds: Research allows us to show results, to measure impact,
and to re-focus our efforts based on those numbers. For example, if an initiative is not
working with a certain public researcher can show that ineffectiveness statistically, and the
communication can be re-designed or eliminated. Thus, researcher can direct funds toward
more successful elements of the public relations initiative.

Techniques of PR Research

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In public relation, formal research is used to create. an accurate portrayal of a stakeholder


group. Another Kind of research is the informal research or non-scientific research, Informal
research describes some aspects reality but does not necessarily develop an accurate picture
of the lager reality as it whole. Informal research can be quite useful in public relations, but it
should not lead us to conclusions about an entire stakeholder group.
Informal Research
There are nine informal research methods. According to her, these methods usually are such
that can be adopted with minimal formal settings. They are however very dependable in their
results as they involve personal contacts with the research subjects or respondents. These
informal methods' include:
1) Personal Contacts: This method involves one-to-one information souring from reliable
sources. It is a very reliable method as the respondent is more likely to give researcher a
candid opinion of a situation. Researcher could employ this method in discovering people's
disposition towards some policies of the organisation. Some of the respondents could be
company staff, shareholders or members of host community.
2) Key Informants: There is some vital information that researcher may not be able to source
from just personal' contacts. This is another way of saying that all personal contacts are useful
in public relations research but some are more useful than others. Among the key informants
would be opinion leaders and experts whom researcher can consult regularly in specific
situations. These include editors, reporters, labour leaders, civil leaders, etc. Each of these
persons would be handy in supplying worthwhile information in certain areas that are special
to them. The nature of information that researcher would get from this group is not the same
as those researcher will get from personal contacts.
3) Community Forums: These forums are similar to town meetings that bring elders and
opinion leaders together to solve specific problems or deliberate on specific matters of
common interest. Community forums are veritable avenues for public relations practitioners
to gather information needed to research purposes.
4) Focus Groups: When researchers wish to ascertain public knowledge, opinions,
disposition or behaviour on specific issues, focus groups are usually useful. Although results
obtained from focus groups may not be as representative of any particular public (depending
on its composition) yet issues raised in such groups serve as basis for further research. Focus
groups also have the advantage of providing immediate feedback to the researcher.
Researchers could also use focus groups to test the clarity and fairness of survey questions.
They are also relatively less expensive than most other research methods.
5) Advisory Committee Boards: Researchers could also have standing committees or boards
on which are some influential persons that the issue of the research or investigation concerns.
Such persons 'could give very worthwhile without feeling that they are being used to achieve
some ends; They could even see it as a privilege to be on such committees or panels and
would be willing to give it heir best shot.
6) Ombudsman: The ombudsman is a complaints collection committee or agency. The
existence of an ombudsman often reduces the tension that could' lead to crisis as the
complaints brought before it often serve as feedback that could give management an idea of
the feelings of some of its publics. Information obtained through this technique could be used
as basis for further research.
7) Call-in Telephone Lines: If one works for any of the oil companies in the oil producing
areas in Nigeria, or researcher is a consultant to any of them, one can gamer lots of
information from radio and television current affairs programmes when such programmes
focus on matters that relate to oil producing companies and the host communities.
8) Mail Analysis: One cannot underestimate the usefulness of mail analysis. Several of the
letters that researcher receives from publics could point to a clear direction in their
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disposition towards the organisation or client This underscores the importance 5f good record
keeping and topical indexing of every mail one receives. From that entire researcher have
seen about public relations publics, no well-meaning organisation would disregard mails from
its publics.
9) Media Content Analysis: Some media report about the organisation or client could serve
as springboards for research. Therefore, researchers must keep abreast of the media and their
reports about the organisation or client. Researcher can do this by targeting radio or television
programmes that may likely report one or through which some of the publics may air their
views about you. Researchers must also listen to news reports and commentaries. Again it's
worth the time to go through the papers and file clippings of reports that relate to the
organisation or client. These clippings would be useful when one has to do some formal
research.

Formal Research
Public relations practitioners commonly use five research methods which Shall be discussed
below. These methods are:
I) Secondary (Library) Research: Secondary research as different from primary research
uses materials generated by others (often in primary research). In primary research,
researchers go to the source of the finding and obtain information form the scratch, whereas
in secondary research, researchers make use of existing materials. Published materials like
newspaper and magazine
2) Feedback Research: This research often helps and organisation to receive unsolicited but
useful information from stakeholders group's responses to its actions and policies. These
responses can be in the form of letters, telephone calls and press clippings. E-mails at rhe
company's website could be a good source of feedback research.
3) Communication Audits: When researchers conduct a communication audit research, they
are attempting to determine whether the organisation communication is consistent with its
missions and goals. In completing a communication audit, researchers reviews the
organisation's communication and records and conduct interviews with key officials.
According to Guth and Marsh, a communication audit would usually answer five questions:
i) What are the organisations's stated goals in relation to its stakeholder groups?
ii) What communication activities has the organisation used to fulfill those goals?
iii) What communication activities are working well and are consistent with those goals?
iv) Which communication activities are not working well towards the achievement of
those goals?
v) Given the findings of this audit, what revisions in goals of communication activities
are recommended?

4) Focus Groups: These groups are an informal research method in which interviewees or
moderators meet with groups of selected individuals to determine their opinion on specific
issues. Although focus groups are not very representative of a particular public, they are
useful at indicating a public's knowledge, opinion, predisposition, and behaviour. Focus
groups are useful for generating qualitative rather than quantitative data. The proponents of
focus groups believe it is an excellent way to discover the attitudes of customers, prospects
and other target groups and publics. One benefit of the focus group is that it can directly
involve the publics or audiences. They can even watch the proceedings behind a one-way
mirror.
Guth and Marsh give the following ten-point advice on how to conduct a focus group:
i)Develop a list of general questions based upon information needs.
ii) Select as a moderator someone skilled in interviewing techniques.
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iii) Recruit eight to twelve participants.


iv) Record the session on audiotape or videotape (or both).
v) Observe the session.
vi) Limit the discussion to 60-90 minutes.
vii) Discuss opinions, problems, and needs - not solutions.
viii) Transcribe the tape prepare a written report on the session.
ix) Prepare a written report on the session.
ix) Remember that focus groups are informal research.
5) Survey Research: Surveys are one of the commonly used research methods in public
relations today. Two reasons that may be adduced for this are that survey gives researchers
first-hand information and it is relatively inexpensive. Surveys are very useful tools in
targeting communications and measuring results. Through computer analysis, survey research
makes it easier to select the right target, use the appropriate message, and communicate
through the most effective channels and measure results. The basic idea behind survey
methodology is to measure variables by asking people questions and then to examine
relationships among the variables. In most instances, surveys attempt to capture attitude or
patterns of past behavior.

Measuring The Effectiveness Of PR: PR Evaluation


Evaluation is an essential step practitioners take to assess the effectiveness of a public
relations effort, to quantify that effectiveness for management, and to adjust tactics if
necessary while the campaign is still in progress. Evaluation is all about demonstrating to
management the value of public relations. In this process, value is even more important than
volume. The number of news releases sent to the media, 0 even the number used by the
media, is no longer an acceptable measure of effectiveness. Rather, practitioner today gauge
effectiveness by measuring changes in the public's behaviour, attitudes, knowledge, and
awareness. Some of the tools that capture these data are impact analysis, audience coverage,
audience response campaign impact, and environmental mediation. Most public relations
efforts in the past have not been measured or not been measured adequately, to provide
answers to key questions such as the following - Why did the campaign work or fail? What
were the most effective tactics? And what would have happened had if a midway changes
through the campaign is made Public relations agencies and departments have often not been
able to sell management or clients on the necessity of evaluation. One noted practitioner has
argued that less than 5' per cent of public relations programmes have been effectively
evaluated. Traditionally, public relations evaluation has been used to measure output,
including the number of press releases used, the hits on the website, and the number of video
clips used. This is typically the implementation phase of a public relations effort. These
implementation measures of output are necessary to provide input into the evaluation, but
they are no sufficient to provide an assessment of quality, cost effectiveness, or opportunities
for improvement. Instead, the practitioner should be measuring changes in behaviour,
attitudes, knowledge, and awareness.

Need for Evaluation Research


To help explain how evaluation can be involved in virtually every phase of a programme, it is
divided into three evaluation segments:
1) Implementation Checking: The central question in this start-up assessment step is, to
what degree is the target audience being reached? Regardless of how complete the planning
process may have been, it will still be necessary to determine the difference between planned
and actual implementation. Variations from the original plan must be analysed and explained
so that a decision can be made to either modify the plan 0 correct the discrepancies. .
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2) In-Progress Monitoring: Periodically during the programme, actions undertaken should


be reviewed an if necessary, modified. This process is often called formative evaluation.
These reviews can be planned for regular intervals to determine the effectiveness of the
programme in meeting its objectives. An unanticipated results can be assessed and factored
into the evaluation. The variance between actual an anticipated progress at each point can be
examined for its effect on the overall outcome. Regular monitory helps to determine why
some results differ significantly from the original plan and prevents unwelcome surprises.
3) Outcome Evaluation: The final step is to assess the programme's end results. This process
is called summative evaluation. Once again, objectives and results are compared to determine
the variance. At this point, all prior evaluations become important for explaining the context
in which the programme was implemented and for interpreting the results. An evaluation
report transmits this information, along with any suggestions for planning future efforts, to an
appropriate decision

Steps in PR Evaluation
There are atleast three levels of evaluation of public relations efforts - preparation for the
public relations programme, implementation of the effort, and impact analysis of the
programme.
1) Preparation: Evaluating preparation may involve examining the adequacy of the
background information that one gathered the appropriateness of the message content and
format, and the quality of the messages.
2) Implementation: Evaluating implementation involves measuring the number of messages
sent (distribution), the number of messages placed in the media, the number of people
receiving the message, and the number of people who attend to the message. .
3) Impact: When impact is evaluated, practitioners measure the number or percentage of the
audience who learn the message content, who change their opinions, who change attitudes,
and who behave in the desired fashion. They may also determine if the problem is solved
or>the goal is achieved. To move toward a more successful evaluation effort, all three levels
must be examined, not just the traditional implementation measures.

Evaluating the Worth of Public Relations Efforts


Too many public relations programmes have been eliminated or severely cut back because no
"value" could be attached to them. The harsh realities of corporate existence make it
necessary for public relations practitioners to demonstrate the worth of what they do.
Particularly in difficult economic situations, every aspect of organisational activity is
measured by its relative benefit to the firm. Public relations departments that cannot
demonstrate their value to the organisation will not be in a. position to influence the policy
decisions that affect their own fate. While almost anything can have some form of
measurement attached to it here are some of the most common areas of PR measurement
activities:
1) Media Coverage and Impact: While "clip counts" and "impressions" are still used as
standalone measures of effectiveness in public relations, there is widespread recognition of
the insufficiency of such metrics. However, these traditional methods can be enhanced
significantly by incorporating measures that break results out by the "tone" of coverage
received. The use of content analysis to determine the degree of favourableness of media
impressions or clips helps to understand the results in positive or negative impact.
2) Event Measurement: The degree to which media coverage is increased in positive
impressions due to an organisation's participation in an event such as a trade show or charity
benefit as well as the impact on key stakeholders who actually visited the exhibit
or:programme.
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3) Word of Mouth and Other "Social Media": Traditional word-of-mouth


recommendations and discussions are consistently cited as the most powerful influencers of
public opinion. Social media, such as blogs, myspace.com, and YouTube are increasingly
effective ways to reach opinion leaders. For example, measuring the amount and tone of
coverage in these online exchanges is the purpose of Nielsen Buzz Metrics.
4) Web-Based Messages: While number of page views and unique visitors have traditionally
been a primary measure for online placement, new approaches for tracking the impact of PR
web-based initiatives are corning from services such as Yahoo News, Google News, cornS
core, and Nielsen Net Ratings.
5) Corporate Reputation Enhancement: Measures of the qualitative and quantitative
positive impact on an organisation's reputation among various stakeholders (customers,
suppliers, shareholders, employees) can be achieved through the use of marketing mix
models. These complex statistical methods can help organisations assess the relative Return
on Investment (ROI) from various methods of communication as well as their cumulative
impact.

PR Counselling
Counselling is the first step towards developing and implementing a long term PR strategy. It
involve evaluating the client's business objectives, its target audiences and its competitive
market situation. Such a study leads to the development of the PR objectives and
subsequently the PR strategy to work toward achieving these objectives. PR counselling is an
ongoing process that also assesses specific issues an opportunities that may arise from time to
time, and proposes the way forward to respond to these. To reach its organisational goals,
today's management needs to communicate with a number of important audiences -
customers, stockholders, special interest groups, the media, employees, communities,
government agencies, banks, legislators, creditors and many others. Successful management
turns increasingly to public relations counseling and the techniques of professional public
relations to help enterprises communicative effectively with those audiences. Often,
organisations that have professional public relations managers on staff seek external
communication consulting assistance, ranging from strategic counsel on some issues, to
tactical implementation support on special projects. Choosing the right agency or consultant
for the work one has at hand is critical because it can bring an objective, independent point of
view to help one achieve the communications goals. External consultants are exposed to
different organisations on several different levels; they can apply the best solution to the
communications challenges, using a variety of new ideas and tools along the way.

Counselor’s Functions Related to Counselling


1) Assist the pupil to understand and accept himself as an individual, thereby making it
possible for the pupil to express and develop an awareness of his own ideas, feelings, values
and needs.
2) Furnishes personal and environmental information to the pupil as required regarding his
plans, choices or problems.
3) Seeks to develop in the pupil a greater ability to cope with and solve problems and an
increased competence in making decisions and plans-for which they are responsible.

Sources of PR Counselling
Sources of PR counselling are as follows:
1) Talk with Peers: Friends, business acquaintances, fellow members of business or civic
groups can be invaluable in providing recommendations. Find out if their organisations retain

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public relations counsel. If so, which ones? Are their performances satisfactory? Would they
recommend them? What do they know about any other public relations firms in the area?
2) Professional Associations: If the organisation belongs to a trade or professional
association, ask it for recommendations of public relations firms or counsellors in the area
that it knows by reputation or experience. Another source of information on public relations
firms, of course, is the Public Relation Society of America or one of its area chapters.
3) Surfing: There are many online directories of public relations firms, including PRSA's
Find a Firm directory.
4) Media: Local reporters who cover the organisation’s field and ask about the public
relations firm from whom they receive the most accurate and professional information and
materials. Make the same query of editors of trade publications which cover the field. Most
media can name several public relations firms and can also rank them for the company.
Remember, however, that the media’s opinions about public relations firms' capabilities are
generally based on or confined to just one area - publicity. After polling some peers
professional associations and the media, counsellors begin to hear some firm names several
times, perhaps an indication that these are firms the organisation should investigate further.

Marketing-Public Relations
The term 'Marketing-Public Relations' or MPR has been used increasingly by both marketers
and public relation practitioners since the 1980s. The term emerged originally in the U.S.A.
to refer to the area of public relation work concerned with support for marketing activities. As
the term has gained increasing currency, some observer have suggested that MPR should be
recognised as a distinctive discipline or function in its own right, separate from other forms
of public relations. Those advocating this view have argued that this form of public relation
practice has become sufficiently specialised to warrant being treated as distinct from all other
forms of public relations dealing with relationships with non-customer publics. Moreover,
supporters of the MPR concept have argued that this area of public relations work should be
treated as part of the marketing management function.

Marketing Public Relation Decisions


Public relations involves building good relations with the company's various publics by
obtaining favourable publicity, building-up a good corporate image, and handling or heading-
off unfavourable rumours, stones, and events. Public relations are very believable - news,
stories, features, and events seem more real and believable to readers than ads do. Public
relations can also reach many prospects who avoid salespeople and advertisements - the
message gets to the buyers as "news" rather than as a sales-directed communication. As with
advertising, public relations can dramatise a company or product. Marketers tend to under-
used public relations or to use it as an afterthought. Yet, a well-thought-out public relations
campaign used with other promotion mix elements can be very effective and economical.
In considering when and how to use Marketing Public Relation (MPR) , management must
establish the marketing objectives, choose the messages and vehicles, implement the plan
carefully, and evaluate the results. The main decisions in public relation are as follows:
1) Establishing the Marketing Objectives: MPR can build awareness of a product, a
service, a person, an organisation, or an idea; add credibility by communicating a message in
an editorial context; boost salesforce and dealer enthusiasm; and hold down promotion costs
because it costs less than media advertising. Whereas PR reaches target publics through the
mass media, MPR is increasingly borrowing direct response marketing techniques and
technology to reach target audience members one-onone.

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2) Choosing Messages and Vehicles: The MPR manager must identify or develop interesting
stories about the product. If there are few stories, the expert should propose newsworthy
events to sponsor as a way of stimulating media coverage, For example, PBS wanted to
dispel the perception that the musical genre of the "blues" was dying. Its Blues Project
included special events, a special website, a radio and television series, a teacher's guide, a
concert, and more. The campaign received nearly a billion positive media impressions and led
to a surge in CD sales of blues music.
3) Implementing and Evaluating the Plan: MPR's contribution to the bottom line is
difficult to measure because it is used along with other promotional tools. The easiest
measure is the number of exposures obtained in the media. A better measure would be
changes in product awareness, comprehension, or attitude resulting from the MPR campaign
(after allowing for the effect of other promotional tools). The most satisfactory measure is
sales-and-profit impact, allowing the company to determine its return on MPR investment.

Marketing Public Relation Function


Marketing public relations is one of the functions of PR which-is defined as using non-paid
media to deliver designed positive brand image to influence the consumers positively and PR
and marketing are closely related to each other. Therefore Kotler and Mindak have identified
several organisational designs for to show public relations integration into the promotional
mix. However according to Duncan public relations cannot be thought without including
traditional responsibilities. So when speaking about PR, we must consider about both the
traditional or more marketing-oriented version of PRO Because they are all important and
they all include specific communication objectives. According to Thomas L' Harris,
'Marketing public relation functions is PR activities which is designed to support marketing
objectives'; Some of the marketing objectives that may be aided by PR activities include
raising awareness, informing and educating, gaining understanding, building trust, giving
consumers a reason to buy and motivating consumer acceptance.
The purpose of marketing PR is to achieve building and supporting the full range of
marketing communications objective. To achieve this PR include developing consumer
acceptance, informing, building trust, awareness and, etc. According to Pick ton and
Broderick, MPR is important for marketing mix in a lot of ways:
1) Building a Marketplace Awareness before the Media Advertising Publishes: This can make
an chance for the marketers to gain more publicity and awareness and it increase the
effectiveness of the advertising.
For example, before the media advertisings, company can aware people by organising some
events or some charity programmes and shows its name.

2) Creating Advertising News before the Product News: Sometimes during big events like
Superbowl, advertisings can be the focus more than the games. (For example, Victoria's
Secret).
3) Introducing a product without advertising or: little advertising, '
4) Providing a value-added customer service.
5) Defending products at risk and giving reasons for consumers to buy ..
6) Providing opinions for the opinion leaders.
.

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JEPPIAAR ENGINEERING COLLEGE


Rajiv Gandhi Salai, Chennai-119
(ISO 9001:2008 Certified & NBA Accredited Institution)
DEPARTMENT OF MANAGEMENT STUDIES
BA7014 INTEGRATED MARKETING COMMUNICATION
QUESTION BANK
Unit I
Part A

1. Define Advertisement
Advertising is the non-personal communication of information usually paid for and
usually persuasive in nature about products, services or ideas by identified sponsors
through the various media.

2. Define IMC.
According to The American Marketing Association, "IMC is a planning process
designed to assure that all brand contacts received by a customer or prospect for a
product, service, or organization are relevant to that person and consistent over time".

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IMC is also broadly known as the term 'Promotion Mix'. The marketing effect is
fragmented and the result could be conflicting communications that confuse the customer.
The result is wasted time, money, and effort. (IMC) is the coordination and integration of
all marketing communication tools, avenues, and sources within a company into seamless
program that maximizes the impact on consumers and other end-users at a minimal cost.

3. How IMC helps in providing information?


 IMC focuses on building brand recognition and equity.
 It helps to provide information to both consumers and business buyers
 Retailer’s store hours,
 Business location
 Detailed product specifications.
 Information can make the purchasing process appear to be convenient and relatively
simple, which can entice customers to finalize the purchasing decision and travel to
the store.

4. Explain the Challenges of IMC due to globalization.


 Socio Cultural threats
 Global competition
 Financial constraints
 Political and legal pressures

5. List the roles of advertising.


 The Marketing Role
 The Communication Role
 The Economic Role
 The Societal Role
6. Explain the various objectives of advertising?
 Sales Objectives
 Communication Objectives
7. Explain the Advertisement Decision Process.
 Review of the marketing plan
 Situational Analysis
 Analysis of communication process
 Budget Determination
 Advertising objectives
 Deciding the message strategy
 Integration & implementation
 Monitor, Evaluate & control

8. Discuss the economic impacts of advertising?


 Effect on the Value of Products
 Effect on Prices
 Effect on Competition
 Effect on Consumer Demand
 Effect on Consumer Choice
 Effect on the Business Cycle
 The Abundance Principle
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9. Discuss the various basis of classification of advertising. Give examples.


 Target Group
 Geographic coverage
 Impact Product life cycle
 Appeal
 Media

10. Discuss the social aspects of advertising. Give examples.


 Deception in Advertising
 The Subliminal Advertising Myth
 The Effect of Advertising on Our Value System
 The Proliferation of Advertising
 The Use of Stereotypes in Advertising
 Offensiveness in Advertising

11. Discuss the legal aspects of advertising.


Regulation – PERMA Ordinance, The code of advertising standards and practice
Tobacco advertisements
Representation of children in advertising
Subliminal advertising

12. Discuss the role of advertising in the marketing mix.


 Marketing Role – Brand Building
 Communication Role – Mass Communication
 Economic Role – Price / Value communication, Brand switching
 Societal Role – Socio-Cultural information

13. Advertising is wasteful expenditure for any business. Comment.


 Advertising is a tool for promoting the products, many other tools like
coupons, POP demonstration etc have proved to be effective in many
situations
 Ads are only qualitatively evaluated in terms of the objectives framed.
 Even with zero advertising products do sell.

14. Briefly examine the various stages of product life cycle and state corrective
Advertising measures?
Introduction - Informative Ads
Growth - Competitive / Persuasive Ads
Maturity – Reminder ads to reduce brand switching

15. Briefly explain the relationship of advertising with the other elements of
promotional mix?
Advertising supports and supplements the other elements of the promotion mix. It
increases the effectiveness of the other tools by creating awareness about Sp tools or
by providing additional information aiding direct selling.

16. List the Factors of IMC development in Indian Origin

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Strategically integrating the communication functions results in


 Reduction of duplication
 Development of more efficient and effective communication program.
 Enables adaptation to changing environment
Increase in Mass media
Growth of internet

17. Define advertising agency.


An advertising agency is a service business dedicated to creating, planning and handling
advertising (and sometimes other forms of promotion) for its clients. An advertising
agency is independent from the client and provides an outside point of view to the effort
of selling the client's products or services. An agency can also handle overall marketing
and branding strategies and sales promotions for its clients. According to George E.
Belch, "Advertising agency is a service organization that specializes in planning and
executing advertising programmes for its clients."

18. Discuss the various factors for the selection of an ad agency?


 Specialized services
 Better market knowledge
 Higher bargaining power with media companies
 Creative performance
19. Mention any two reasons for the failure of advertising campaigns.
 Inappropriate media selection
 Irrelevant appeal and message

20. What is incentive based compensation?


Many clients these days are demanding more accountability from their agencies and tying
I agency compensation to performance through some type of incentive-based system.
While there are many variations, the basic idea is that the agency's ultimate compensation
level will depend on how well it meets predetermined performance goals. These goals
often include objective measures such as sales or market share as well as more subjective
measures such as evaluations of the quality of the agency's creative work. Companies
using ! incentive based systems determine agency compensation through media
commissions, fees,bonuses, or some combination of these methods.

21. What is the organisation structure of an ad agency?

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22. Explain the functions of advertising agencies.


 Account services
 Marketing services
 Creative services
 Management & Finance

23. List the factors used to select an advertsising agency.


 Size of the agency
 Services offered
 Budget
 Media control

24. What are full service agencies? (Nov/Dec 2014)


A full service agency offers its clients a full range of
marketing,communications, and promotions services, including planning, creating,
and producing the advertising; performing research; and selecting media. A full-
service agency may also offer non advertising services such as strategic market
planning; sales promotions, direct marketing, and interactive capabilities; package
design; and public relations and publicity. The full-service agency is made up of
departments that provide the activities needed to perform the various advertising
functions and serve the client.

25. What is an Ad campaign?


It includes a series of ads. Placed in various media, that are designed to meet objective
and are based on an analysis of marketing and communication situations.
- S.Waltson Dunn
Advertising campaign is a series of advertisement messages that share a single idea and
theme which make up an integrated marketing communication (IMC). Advertising campaigns
appear in different media across a specific time frame. Various types of media can be used in
these campaigns such as radio, TV, and internet.
According to Dunn and Barban, "An advertising campaign includes a series of ads, placed in
various media, which are designed to meet objectives, and are based on analysis of marketing
and communication situations".

26. List out the advantages & disadvantages of Ad. Agencies mode of
advertisements.
Advantages:
 Advice & counsel on marketing strategy.
 Advice & counsel on advertising and media strategy.
 Prepare & develop, print, outdoor, and electronic advertisement.
 Carry out collateral designs of various items such as display material & other display
Material.
 Help & counsel on sales promotion & other communication tasks
Dis advantages:
 Additional Expense
 Unfamiliararity With Your Product
 Unclear expectations
 Limited creative thinking
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 Low priority

27. What is AIDA?


AIDA model was developed by E.K.Strong explains the impact created by
advertisements in realistic stages.

28. What is DAGMAR?


DAGMAR approach is related to setting of advertising objectives in such a way against
which advertising effectiveness can be easily measured. DAGMAR means 'Defining
Advertising Goals for Measured Advertising Results'. This approach was given by Russel
Collay in 1961. Russel Collay prepared a report for the Association of National
Advertisers in the year 1961. DAGMAR model is based on communication objective of
advertising. DAGMAR model begins with awareness, moves to comprehension, then
conviction and ends with action.
29. What do you understand by Rating?
The best known of all audience measurement
The program rating refers to the percentage of TV households in an area that are tuned
to a specific program during a specific time period
Rating = Households tuned to a show
Total Households

30. How do we decide the frequency of advertisements?


Frequency refers to the number of times the receiver is exposed to vehicle in a
specific time period.

Part B
1. (i) Explain the social, economic and legal implications of advertising.
2. Enumerate the reasons for the growth and importance of IMC. How does it differ
from traditional advertising and promotion?
3. (i) Why do companies need advertising agencies (Functions/Role) and what is the
criterion used to select advertising agencie1s? (ii) Explain the different types of
advertising agencies
4. Explain the different methods of compensating advertisement agencies. Highlight the
changes occurring in
5. Give a detailed account of the structure and operations of the advertising industry.
6. (i) Describe the various aspects to be considered while developing a good advertising
campaign.
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7. Describe the major steps for planning an advertising campaign.

8. Explain the reasons for growth and importance of integrated marketing


communications. How does it differ from traditional advertising and promotion?
(Nov/Dec 2014)
9. Explain different methods of compensating advertising agencies. Highlight the
changes occurring in the way of compensating advertising agencies and factors that
underlie the changes.
10. Detail the functions of advertising agency with examples.
11. Explain the criteria for selection of advertisement agencies.

Unit II
Part A
1. Briefly explain the various types of advertising?
Brand, Retail or Local Advertising, Direct-Response Advertising, Business-to-
Business Advertising, Institutional Advertising, Nonprofit Advertising, Public
Service Advertising

2. Discuss the various basis of classification of advertising


Geographical Spread Basis
Target Group Basis
Impact Basis
Product Basis
Non Product Basis
Appeal Basis

3. Explain a.) Deceptive Ad b.) Unfair Ads.


Deceptive – Unrealistic message
Unfair – Unrealistic objectives
4. What do you understand by advertising copy?
Advertisement copy is the product of collective efforts of copywriters,
artists,layout designers, models, choreographers, directors, market-researchers, etc.
Effectiveness of advertising-campaign depends on effective ad-copy. Ad-copy
should attract attention, create interest of readers/viewers, induce or persuade the
readers to purchase the product or take them near to purchase. The advertising copy
should be capable of turning potential and prospective buyers into actual buyers.

5. Define copywriting advertisement?


Copywriting refers to preparing advertising-copy. Before writing ad-copy,
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copywriter must have information about the clients' product/services, target-market,


competition, general trends, legal restrictions, advertising objectives, timing when the
product is purchased and used, etc. Thus, copywriting is translating the information
provided by advertiser to copywriter, into advertisement in such a way that will help
the advertiser in achieving his advertising objectives.

6. What are elements of a copy?


Headlines The headline is the words in the leading position of the ad—the words
that will be read first or are positioned to draw the most attention
Body Copy The main text portion of a print ad is referred to as the body copy
Visual Elements: The illustration is often a dominant part of a print ad and plays an
important role in determining its effectiveness.

7. What is known as pop up Advertisements?


Pop-up ads or pop-ups are a form of online advertising on the World Wide Web
intended to attract web traffic or capture email addresses. Pop-ups are generally new
web browser windows to display advertisements.

8. Define consumer advertising.


A very substantial portion of total advertising is directed to buyers of consumer
products who purchase them either for their own use or for their households. The fact
that buyers of consumer items are generally very large and are widely distributed over
a large geographical area enhances the importance of advertising as a marketing tool,
he preponderance of such advertising can be seen by looking into at random any
general print media, such as newspapers and magazines etc.

9. What do you understand by industrial advertising?


Industrial advertising is directed at a specialized and relatively small sized target
audience. The target audience are the manufacturers who buy machinery,
equipment, raw materials and consumables. Media used include publications,
direct mail, telephone & internet.
10. What is meant by advertisement appeal? (Nov/Dec 2014)
 The advertising appeal refers to the approach used to attract the attention of
consumers and/or to influence their feelings toward the product, service, or cause.
 Categories
a. Informational / Rational Appeals
b. Emotional Appeals

11. Define advertising message.

An appealing message to the audience is the most essential part of every


advertising campaign. Without an effective advertising message, it is impossible for
any firm to succeed and achieve its objectives. Due to immense information that is
projected on the minds of consumers, striking, and impressing the consumer is very
difficult. Hence, advertising messages become extremely crucial; Advertiser wants to
send some information, facts, and appeals, in a convincing way so that the attention
of audience can be attracted and their interest can be aroused and they can be persuaded to
buy the advertiser's product.

12. Define advertising media.


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The Advertising Media can be defined as the communication channels used


for advertising, including television, radio, the printing press, and outdoor advertising,
etc. These channels of communication serve many diverse functions, such as
offering a variety of entertainment with either mass or specialized appeal,
communicating news and information, or displaying advertising messages. The
media carry the advertisers' messages and serve as the vital link between the seller
of a product or service and the consumer.
According to Philip Kotler, "The communication channels through which message moves
from sender to receiver is called media".

13. What is broadcasting media?


When one talk of advertising the person first thinks of television and radio
advertising, which are types of broadcasting media. The views expressed are
particularly absorbed by those who have no alternative source of information, or by
those who cannot read with any great facility and have not got the cultural
background which might enable them to evaluate the torrent of pictures and works
that pours on them daily.
There are several advantages of television like one have a clear idea that
what is happening in the world, people can have live information about the several
events like sports and any other good or bad events happening on the globe.
14. Write a note on different types of media available to advertisers.

15. What is direct advertising media?


Direct advertising is one of the oldest methods of reaching the consumer or a
prospect. Direct advertising is very comprehensive phrase covering all forms of
printed advertising delivered directly to the prospective customers, instead of indirect
distribution like newspapers or the magazines. The printed matter is distributed house
to house by personal delivery, handed to passers-by on the side-walks, placed in the
automobiles, struck under the wind-screen of an automobile, handed over at the retail
counters or may be sent through post. It is direct mail advertising if it reaches by mail
alone.
16. What are the objectives of media planning?
17. What do you mean by media plan?
Media plan is a document describing objectives, strategy, tactics, resource
allocation, and media schedule and media mix to be used in reaching a targeted
audience. The media plan determines the best way to get the advertiser's message
to the market. In a basic sense, the goal of the media plan is to find that combination
of media that enables the marketer to communicate the message in the most
effective manner to the largest number of potential customers at the lowest cost.
According to Wells Burnett, "Media-planning is a decision process regarding use of
advertising time and space to assist in the achievement of marketing objectives".

18. Define media scheduling


Media scheduling refers to decision regarding date or time when
advertisement is to appear, frequency of ads, etc. Scheduling is defined as the
determination of the time when each items of preparation and execution should be
performed. The term scheduling has two meanings in advertising circles. First
meaning of the term is analogous to the factory situation. Procedures are established
within the agency set-up to make sure that creative work is done in time. In the
second meaning, the term scheduling is used to describe any activity closely related to
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the physical placement of advertisements in the required media. When all the specific
media to be bought have been considered, the job of placing ads in these media
becomes simple.

19. Explain Media scheduling. (Nov/Dec 2014)


 Scheduling refers to the pattern of advertising timing, represented as plots on a yearly
flowchart
 These plots indicate the pattern of scheduled times advertising must appear to
coincide with favorable selling periods
 Three scheduling methods available to the media planner are continuity, flighting, and
pulsing

20. How selection of appropriate media help in media planning?


In media planning, different media are compared on the basis of cost per
reader, cost per viewer, media-image, media-coverage, media-rating, etc. While
selecting media the advertiser ensures that selected media matches with the
features of target audience, for example, if our target audience are literate, then
print-media can be selected; if target audience is a specific professional group, then
professional journals and magazines will be appropriate media. Media planning also
ensures that selected media is as per the message requirements, for example, if
message involves demonstration, then media with audio-visual effects (viz. T.V.) will
be selected.

21. What is media strategy?


Media strategies inform customers about projects and programs through
newspapers, radio, television and videos, billboards, posters and variable message
signs, mass mailings of brochures or newsletters, and distribution of fliers. Working
with the media, an agency takes an active role in disseminating information. Media
strategies take a variety of forms. The simplest examples are fliers about projects
within a corridor (a targeted market area) or variable message signs on highways that inform
motorists (a targeted market) of delays ahead or of alternate routes.

22. Define media research.


Media research is a systematic, empirical research used as a basis for media
planning by media companies. It is a survey conducted to investigate what segment of
consumers read which periodicals and/or listen to or watch which radio or television
programs. Any decision that is not bases on proper information can spell disaster for
any advertising campaign. The information collected through media research shall be
able to provide answer to the following questions: What class of media should be
used? What media vehicle and media option should be used? And what should be the
exposure level and how schedule it?

23. What is layout of advertisement?


Layout is a plan, arrangement, overall structure, blue print of advertising copy. It
arranges headlines, sub-headlines, slogans, illustrations, identification marks,boxes,
text-body, blurbs, closing idea, etc., in a systematic manner. According to Otto
Kleeper, "Layout means two things; in one sense, it means the total appearance of the
advertisement — its design and the composition of its elements; in another sense it
means physical rendering of the design for the advertisement - its blueprint for
production purposes".
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24. Write a short note on copy writing.


Firms can choose to vary the number of times a particular advertisement is repeated,
or they can decide to alter the combination of advertising media used. How the cost of
achieving a sale varies with these changes is another factor affecting the optimal level
of advertising. If advertising costs per unit of output fall, this will put firms with a
small market share at a disadvantage unless they multi-product firms able to capitalize
on advertising a common brand name. The presence of an advertising threshold could
be one reason why unit advertising costs decrease.
25. Give the roles of copywriting in print media
print advertisement is created in two pieces - a copy sheet and a lay-out.The two
categories of copy that print advertising uses are display copy and body copy (or text).
Display copy includes all elements that readers see in their initial scanning. These
elements - headlines, sub-heads, call-outs, taglines, and slogans - usually are set in
larger type sizes than body copy and are designed to get attention and to stop the
viewer's scanning. Body copy includes the elements that are designed to be read and
absorbed, such as the text of the ad message and captions.

26. What are the different types of layout?


Standard layout
Editorial layout
Poster Layout
Comic strip Layout
All type Layout

27. What do you mean by rational appeal?


Rational appeals as the name suggests aims to focus on the individual's functional,
utilitarian, or practical needs for particular products and services. Such appeals
emphasize the characteristics and features of the product and the service and how it
would be beneficial to own or use the particular brand. Print media is particularly
well-suited for rational appeals and is often used with good success. It is also suited
for business-to-business advertisers and for products that are complex and that need
high degree of attention and involvement.

28. What is Advertising effectiveness?


Measuring advertising effectiveness refers to evaluation of advertising results against
the pre-established standards of performance and objectives. Advertising objectives
can be sales objective or communication objective. In the evaluation process, it is
estimated that up to what extent advertising campaign has been able to achieve its
sales or communication objectives. If the advertising fails to achieve the desired
results, the money spent on advertising will go waste. Measuring the effectiveness of
advertising is not an easy task, as advertising objectives are not specific and
advertising is not the only element in the promotion-mix.

29. What are the various ways to measure the effectiveness of an advertising campaign?

30. How would you measure the share of audience? (Nov/Dec 2014)
Share of audience is the percentage of households using TV in a specified time period
that are tuned to a specific program. Audience share is calculated by dividing the number of
households (HH) tuned to a show by the number of households using television(HUT).
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Audience share is always higher than the program rating unless all the households
have their sets turned on (in which case they would be equal). Share figures are important
since they reveal how well a program does with the available viewing audience.

31. What are the factors influencing media choice?


Media Selection Considerations

32. Define Clutter.


The nonprogram material that appears in a broadcast environment, including
commercials, promotional messages for shows, public service announcements, and
the like.

33. Explain Cost Per Thousand (CPM).


Magazine industry provides cost breakdowns on the basis of cost per thousand people
reached.
Cost per thousand (CPM) = Cost of ad space *100
Circulation

PART B
1. Explain the types of media plan. What are the problems faced by the media planner?
Describe in detail the steps in developing a media plan. / Explain the media planning
process and promotional scheduling.
2. (i) Compare and contrast the advantages and disadvantages of types of media.
(ii) How do you select a particular vehicle in media type? Discuss the same with the
components of advertisement budget
3. What are the major advantages and disadvantages of television advertising?
Name a product and suggest three media that you would use to advertise that product.
Justify your media mix choices.
4. (i) Discuss the methods of research to measure the advertising effectiveness.
(ii) Describe a good advertising layout.
5. What important factors should be considered I market analysis of media planning?
Differentiate between CPM and ACPM.
6. Discuss the various types of advertisement copy with examples.

7. What are the important factors to be considered in market analysis in developing a


media plan? Differentiate CPM from
8. What are the major advantages and disadvantages of television advertising?
9. Explain the types of media plan. What are the problems faced by the media planner?
Describe in detail the steps in developing a media plan.
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10. Compare and contrast the advantages and disadvantages of types of media/Explain
different media available for advertising giving their suitability

Unit III
Part A
1. Define Sales Promotion.
The word promotion originates from the Latin word 'Promovere' means "to move
forward" or to push forward. Sales and promotion are two different words and sales
promotion is the combination of these two words. Sales Promotion is another
important component of the marketing communications mix. It is essentially a direct
and immediate inducement. It adds extra value to the product and hence prompts the
dealer/consumer to buy the product. According to Philip Kotler, "Promotion
encompasses all the tools in the marketing mix whose major role is persuasive
communication".
2. What is brand switching?
Some promotions encourage consumers to buy a different brand than the one they
bought on an earlier purchase occasion, or had the intention of buying now. Brand
switching of this type is often called as 'aggressive switching'. The second type of
promotion effect on brand switching is considered as 'defensive switching'. In this
case, the objective is to retain the customer by encouraging her/him to buy the same
brand as was bought on earlier occasion instead of switching to a different brand on
this purchase occasion

3. What are the Objectives of Sales Promotion?


 To introduce new products
 To attract new customers and retain the existing ones
 To maintain sales of seasonal products
 To meet the challenge of competition

4. What is consumer oriented sales promotion?


The primary objective of sales promotion is to motivate consumer behavior - i.e., to
generate some type of active response such as buying Snapple products in order to get
the bottle cap, which serves as currency for an online yard sale Consumer sales
promotions that might induce impulse purchases include limitedtime-only sales,
limited edition products, and products that the consumer is already. looking to
purchase as collectibles. For example, people interested in Coca-Cola collectibles buy
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virtually anything with the Coca-Cola logo displayed on it, from salt and pepper
shakers to tee shirts

5. What do you understand by trade oriented sales promotion?


Trade promotions are the expenditures or incentives used by manufacturers and other
members of the marketing channel to help to push their products through to retailers.
The best way to understand trade promotions is to note that they are incentives that
members of the trade channel use to entice another member to purchase goods for
eventual re-sale. In other words, trade promotions are aimed at retailers, distributors,
wholesalers, brokers, or agents. A manufacturer can use trade promotions to convince
another member of the trade channel to carry its goods. Wholesalers, distributors,
brokers, and agents can use trade promotions to entice retailers to purchase products
for eventual re-sale.
6. Explain the problems or risk involved in sales promotion?
 Lack of planning
 Short term impact

7. What are the common sales promotion strategies and tactics?


 Pull
 Push
 Push-Pull

8. What are the positive and negative effects of sales promotion on brand volume?
Positive Impact:
 Increases short term sales
 Creates initial/trial purchase
Negative Impact:
 Reduces brand equity
 Reduces brand loyalty

9. Briefly examine the factors influencing sales promotion growth.


 Growing power of retailers
 Declining brand loyalty
 Brand proliferation
 Fragmentation of consumer market

10. What are the factors which influence sales promotion growth?
 Growing power of retailers
 Declining brand loyalty
 Brand proliferation
 Fragmentation of consumer market

11. What is the importance of sales promotion in Marketing?


 SP provides an extra incentives to buy
 Speedens up the selling process and maximize sales volume
 SP activities are targeted to different parties in the marketing channel

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12. Differentiate between advertising and sales promotion?


Advertising is targeted towards a large group and is used to generate short and long
term sales
SP is designed to a specific group of customers and is used to generate immediate
short term sales

13. How dose Sales Promotion Affects Sales?


SP tools are targeted towards a specific group of the target market in order to bring
about immediate sale
14. What is event marketing? (Nov/Dec 2014)
Event marketing is a type of promotion where a
company or brand is linked to an event or where a themed activity is developed for the
purpose of creating experiences for consumers and promoting a product or service.

15. State the advantage of a bounce back coupon. (Nov/Dec 2014)


An in/on-pack coupon that is redeemable for the next purchase of the same brand is
known as a bounce-back coupon.
Advantages:
 encourage the consumer to purchase the product in the early stages of its life cycle
 Encourages repeat purchases and thereby helps in retaining consumers

16. Define Sales promotion.


Marketing activities that provide extra value or incentives to the sales force,
distributors, or the ultimate consumer and can stimulate immediate sales.
Materials that act as a direct inducement, offering added value, or incentive for the
product, to resellers, sales persons or consumers
The word promotion originates from the Latin word 'Promovere' means "to move forward" or
to push forward. Sales and promotion are two different words and sales promotion is the
combination of these two words. Sales Promotion is another important component of the
marketing communications mix. It is essentially a direct and immediate inducement. It adds
extra value to the product and hence prompts the dealer/consumer to buy the product.
According to Philip Kotler, "Promotion encompasses all the tools in the marketing mix whose
major role is persuasive communication".

17. What is consumer oriented sales promotion?


The primary objective of sales promotion is to motivate consumer behavior - i.e., to
generate some type of active response such as buying Snapple products in order to get the
bottle cap, which serves as currency for an online yard sale Consumer sales promotions
that might induce impulse purchases include limited time- only sales, limited edition
products, and products that the consumer is already looking to purchase as collectibles.
For example, people interested in Coca-Cola collectibles buy virtually anything with the
Coca-Cola logo displayed on it, from salt and pepper shakers to tee shirts.

18. Identify any four trade oriented promotion techniques.


A trade sales promotion is targeted at resellers—wholesalers and retailers—who
distribute manufacturers' products to the ultimate consumers.
• Point of purchase displays
• Trade shows
• Push money
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• Deal Loaders
19. Define coupon ?
A coupon is a certificate that entitles the consumer to a specified saving on the purchase
of a specified product. These coupons are usually issued by the manufacturers through the
retailers or in most of the cases; they are kept inside the package. The consumer may get a
discount of the value stated on the coupon at the time of purchase. The retailers are
reimbursed the value of coupons by the manufacturers, for example, lifebuoy issues
coupons on purchase. Coupons are used widely by marketers across many retail industries
and reach consumers in a number of different delivery formats.

20. What is bonus/premium?


An offer of a certain amount of product at no cost of consumers who buy a stated amount
of a product or a special pack thereof is called premium offer or bonus offer. This method
is very popular now-a-days in view of the acute competition. Premium may be kept inside
the pack or in the form of reusable container. Bonus offers can take on many different
characteristics. They will not appeal to as broad a group as will price offers. Bonus deals
can provide the perception of a greater value given than direct price. When an additional
25 per cent of the product is packaged with the product as a bonus, the user receives full
value, but the manufacturer has only a 25 per cent increase in product cost, with no added
profit cost to other channel members.

21. what do you understand by trade oriented sales promotion?


Trade promotions are the expenditures or incentives used by manufacturers and other
members of the marketing channel to help to push their products through to retailers. The
best way to understand trade promotions is to note that they are incentives that members
of the trade channel use to entice another member to purchase goods for eventual re-sale.
In other words, trade promotions are aimed at retailers, distributors, wholesalers, brokers,
or agents. A manufacturer can use trade promotions to convince another member of the
trade channel to carry its goods. Wholesalers, distributors, brokers, and agents can use
trade promotions to entice retailers to purchase products for eventual re-sale.

22. What do you understand by sales force incentives in sales


promotion?
A quota of sale is fixed for each salesman during a fixed stated period. Bonus isoffered on
sales in excess of the quota fixed. In order to get the higher premium the salesman will try to
sell more quantities of goods. The manufacturer sets a target of sales for a year. If the sales
force sell the products above the targeted sales, bonus is offered to them. This is an
encouragement incentive given to the salespeople to sell more products to cross the quota or
targeted sales.

23. What is sales promotion campaign?


'Sales promotion campaign' is important and widely used series of sales promotion efforts
in a common theme for pushing sales of products. The Sales promotion campaign must be
well planned and strategically drafted using the right campaigns as well as strong,
persuasive and attention grabbing words. Companies introduce sales promotion
campaigns for capturing market. Price discounts and schemes like buy one, get one free
are also offered as sales promotion. Massive advertising is useful to support the sales
promotion campaigns.

24. What is meant with sales promotion outsourcing?


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Some companies outsource certain sales promotions. In this section, several types of
outsourced sales people are introduced, as well as the reasons for and challenges
associated with outsourcing various sales activities are elaborated. A company can
outsource part or all of the sales cycle. When a company hires a call center to make
phone-calls, and set-up appointments, it is outsourcing only the leadto- suspect
conversion portion of the sales cycle. The suspect-to-prospect and prospect-to-customer
conversions could then be the responsibility of either the outsourcer or another type of
sales organization it hires for that purpose

25. What is international promotion strategy?


Traditionally, international promotion referred to promotion undertaken beyond a
company's domestic market, using a common message to definable international
audiences. It was accepted that, within the domestic market, a company's market
penetration was greater than in the international arena, its local market was broader, its
sales message was more detailed, and its advertising was created to match actual or
perceived local nuances, the same copy line.

26. What is online sales promotion?


Online sales promotions have expanded dramatically in recent years. Marketers are now
spending billions of dollars annually on such promotions. Sales promotions online have
proved effective and cost-efficient, generating response rates three to five times higher
than those of their offline counterparts. The most effective types of online sales
promotions are free merchandise, sweepstakes, free shipping with purchases, and
coupons. Online sales promotion is quickly becoming a pervasive mode of
communication with prospective consumers.

27. What is social media?


Social media advertising is one sales technique that rarely fails. If a promoter manages to
find a slot for the business in social sites like twitter, facebook, myspace, etc., rest assured
to see an increased traffic flow to his website. Social media helps in connecting the target
audience effectively. Developing facebook applications that will promote business or
placing ads on relevant pages, ensures a better visitor clickrate.

28. What is Interactive/Online/Internet Marketing?


Marketing over internet is direct, low in cost, interactive and two-directional,
personalized, up-to-date, targeted, less intrusive, and less commercial. The Internet has
brought many unique benefits to marketing, one of which being lower costs for the
distribution of information and media to a global audience. The interactive nature of
Internet marketing, both in terms of providing instant response and eliciting response, is a
unique quality of the medium.

29. Write two tools for online sales promotion briefly.


 Offer online-only specials
 Ship large orders for free
 Encourage impulse buys
 Provide great customer service

30. What are advertorials?

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A newspaper or magazine advertisement giving information about a product in the


style of an editorial or objective journalistic article

Part B
1. Discuss the different sales promotion techniques in trade and consumer oriented with
examples
2. Discuss the various objectives that may be sought when using the internet in an IMC
strategy. State some of the measures used to determine the effectiveness of a website.
3. Explain the concept of integrated promotions. Discuss the role of integrated
promotion elements in different stages of product life cycle with suitable examples.
Highlight the importance of coordination with various promotion techniques with
examples.
4. Explain the scope and role of sales promotion. What are the different types of sales
promotion objectives? Give examples. Describe different types of sales promotion
activities.
5. Discuss the various objectives of using the internet in an IMC strategy. State some of
the measures used to determine the effectiveness of a website
6. Describe different types of sales promotion activities. Elaborate on the consumer
promotion oriented goods used by retailers to encourage them to make a purchase.
7. Explain the scope and role of sales promotion. What are the different types of sales
promotion objectives? Give examples.
8. Briefly explain the factors that are responsible for the rapid growth of sales
promotions.
9. What are the advantages and disadvantages in outsourcing the sales promotion?
10. Discuss the integrated sales promotion .Highlight the importance of coordination with
various promotion techniques with examples

UNIT IV
Part A
1. Explain the role played by Public Relations.
PR has taken a broader and more market oriented perspective designed to promote the
organization and its products & services. PR department works closely with the
marketing department to support traditional advertising and marketing efforts and as
akey part of the IMc program.

2. What are the types of PR?


 Pre-advertising Pr
 Coincidental PR
 Post-Advertising PR
 Continuous PR

3. Enlist the functions of PR.


 Determination and evaluation of the public attitudes
 The identification of policies and procedures of an organization with a public
interest

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 Development and execution of a communication program designed to bring


about public understanding and acceptance

4. What are the objectives of PR?


 To create understanding
 To educate the market
 To create a corporate brand
 Launching a new product or brand

5. State the important objectives of MPRs. (Nov/Dec 2014)


Public relations activities designed to support marketing objectives are referred to as
marketing public relations (MPR) functions MPR.
Objectives of MPR:
 Raising awareness
 Informing and educating
 Gaining understanding
 Building trust
 Giving consumers a reason to buy
 Motivating consumer acceptance

6. Give two reasons why good public relations are necessary.


 PR tools enjoy higher credibility than Advertising
 PR always results in building long term positive attitude and does not possess
the risk of negative publicity

7. Mention the elements of promotional mix.


 Advertising
 PR
 Publicity
 Sales Promotion

8. Explain briefly the process of PR.


 Determining and evaluating public attitudes
 Establishing a PR plan
 Developing and executing the PR program

9. List the PR tools.


 Participation in public events
 Press releases
 Newsletter
 Blogging
 Social Media
 Community Relations

10. What is opinion survey.


An opinion poll, sometimes simply referred to as a poll, is a human research survey of public opinion from
a particular sample.Opinion polls are usually designed to represent the opinions of a population by
conducting a series of questions and then extrapolating generalities in ratio or within confidence intervals.

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11. State the advantages and disadvantages of MPR.


Advantages
 It is a cost-effective way to reach the market.
 It is a highly targeted way to conduct public relations.
 It benefits from the endorsement of independent and objective third parties who
have no association with the product.
 It achieves credibility.
 It supports advertising programs by making messages more credible.
 It breaks through the clutter.
 It circumvents consumer resistance to sales efforts.
Disadvantages
 There is a lack of control over the media.
 It is difficult to tie in slogans and other advertising devices.
 Media time and space are not guaranteed.
 There are no standard effectiveness measures.

12. What is a PUFF?


PUFF is a piece of writing which proclaims the virtues of a company, product or
service, praising it and urging readers to favor it by making a purchase.

13. What is press relations?


Press relations aims to achieve maximum publication and broadcasting of public
relations information in order to create knowledge and understanding.

14. What is Self-image?


The image a person carries about himself or herself as a particular type of personality
with certain traits, habits, relationships, behavior and possessions.

15. Who are considered as public?


 The community
 Potential employees
 Employees
 Suppliers
 The money market
 Distributors
 Customers and users

16. How is an in-house PR department organized?


o CEO
 PR Department
 Production
 Finance
 Marketing

17. What are the advantages of PR?


 Credibility
 Lead generation
 Avoidance of clutter
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 Abilty to reach specific groups


 Image building

18. What are the demerits of PR?


 Incomplete communication process
 Absence of connectivity to the source
 Redundancy resulting from lack of coordination between the Pr and marketing
department

19. Why is PR effectiveness evaluated?


a. To measure the achievements of the PR program quantitatively
b. To justify costs to the management
c. To judge the quality of PR activities
d. To assess whether the communication objectives have been acheived

20. List the tools for evaluating PR?


 Personal observation and reaction
 Team approach
 MBO
 Public opinion and surveys
 Audits

21. What are the advantages of PR consultancies over In-house PR department?


 Experience based on handling variety of accounts
 Buying ability and knowledge of sources of supply
 Well trained professional staff

22. What is webers principle?


According to this law, the stronger the initial stimulus the greater the additional
intensity needed for the second stimulus to be perceived as different.

23. List the external media used for PR.


Newspaper, radio, magazine, Television, Film

24. What is puffery?


Puffery is an advertising that praises one product to be sold with subjective opinions,
exaggerations or superlatives without stating any facts.

25. What is bulletin board?


Several times many organizations, publish many important Notices, orders, for the
employees of organizations on a significant board, this is called Bulletin Board

26. What do you mean by house journal?


House Journals are one of the most effective tools that organizations can use to
communicate with their employees. It is a periodical publication which tries to
establish regular communication between an organization and its employees and other
public.

27. Brief on films as a tool for PR.


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The film is a very powerful medium of PR, as a medium of communication,


instruction, education, entertainment, marketing, research etc.
 Greater impact because of its powerful appeal to eye, ear and senses.
 Effective learning aid on account of auditory and visual qualities.
 Accurate reproduction of objects and events.
 Clarity.
 Long life-span and Measurability of circulation and effectiveness statistically.

28. What are the objectives of community relations?


 To inform the community about company’s policies, operations and problems.
 To answer criticism and repel attracts by local pressure group.
 To promote the welfare of a community.
 To inform employees connected with a company.
 To find out what the community is thinking and saying about a company and its
policies and operations.

29. What are the direct communication methods used in PR?


 Speeches
 Electric spectacular display
 Signs
 Post cards
 Letters
 Word of mouth

30. How is press release different from press tour?


a. The usual way of issuing information to the press is by writing a press release.
Press releases are a traditional method of handing out information and is a
useful tool with the PR professionals.
b. Several times many organizations are invited journalists to visit their
production houses where their products are formed. After visiting journalists
are written report based on this. For this press Tour is a very important tools
for the PR professionals.

Part B
1. Explain the term public relations and describe the process of public relations. Discuss
the advantages and disadvantages of PR
2. How will you measure the effectiveness of PR? Explain the tools and techniques used
to measure PR effectiveness.
3. Briefly describe the budgeting techniques followed by various public relation firms
4. How are PR departments funded by business firms? List the differences among public
and Private PR departments in the domains of (i)research (ii)counseling and (iii)
evaluation.
5. Explain the MPR structure
6. Differentiate PR and Media Relations
7. Discuss the advantages and disadvantages of PR
8. How do measure the effectiveness of PR tools and techniques

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UNIT V
Part A
1. Define publicity.
Publicity refers to the generation of news about a person, product, or service that
appears in broadcast or print media. Publicity is really a subset of the public relations
effort

2. What is the power of publicity? (Nov/Dec 2014)


Publicity is highly credible. Unlike advertising and sales promotions, publicity
is not usually perceived as being sponsored by the company (in the negative instances,
it never is). So consumers perceive this information as more objective and place more
confidence in it.
• Publicity information may be perceived as endorsed by the medium in which it
appears.
• publicity is news, and people like to pass on information thathas news value. Publicity
thus results in a significant amount of free, credible, wordof- mouth information
regarding the firm and its products

3. Differentiate advertising and publicity


Advertising is the process of letting the public knows of the new product or
service or of any alterations to the existing one with the main aim of offering it for
sale to gain profit. Advertising can be done through all sorts of media.
Publicity is informing the world about news events or ground breaking
developments in the company through radio, television, magazines, pamphlets, or
newspapers. The publicity is usually picked up by news or industry related media and
is not a paid advertisement.

4. Distinguish between PR and Publicity.


Public Relations Publicity
A concerted program extending over a A short-term strategy
period of time
Designed to provide positive information Not always positive and is not always
about the firm and is usually controlled under the control of the organization
by the firm or its agent

5. What is the role of publicity?


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Publicity can make or break a product or even a company. A marketer cannot capitalize
on the positive publicity or control the effects of negative publicity. Publicity is a
powerful tool

6. Why publicity is powerful?


 Credibility
 Publicity information may be perceived as endorsed by the medium in which it
appears
 News value and the frequency of exposure generated

7. What are the risks associated with publicity?


 Negative Publicity
 Timing
 Uncontrollable by the marketer
 Decided by the media
 May be earlier or late than expected
 Accuracy
 Loss of information
 Inaccurate information
 Filtering

8. What are the methods for measuring effectiveness of publicity?


 Personal observation and reaction
 Matching objectives and results
 The team approach
 Management by objectives
 Public opinion and surveys
 Audits

9. Brief on the relationship between marketing, PR and Publicity?


Forms of communication
• Nature:
– Marketing – Proactive
– PR & Publicity - Reactive
• Focus:
– Marketing – Product
– PR & Publicity – Overall Company positioning internal & external
• Prime Objective
– Marketing – To create or bring a Product or service to market that
people would buy
– PR & Publicity – To build relationships with the stakeholders
• Controllability:
– Marketing & PR – Planned and Executed by the company
Publicity – Planned by the company, Executed by the media

10. How can social media be used for publicity?


 Identify the right social-media platform for your audience
 plan your content and frequency of updates

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 build the page, create messages, or develop a following


 monitor the site for new followers and comment

11. What is community relations?


A community is a group of people, who live in the same place, share the same
government and have a common cultural and historical heritage. The people who live
in a community and the institutions that serve them are mutually depend. The people
cannot enjoy a good life without the institutions. That is called Community Relations.

12. What is a publicity prop?


Inexpensive but interesting and relevant items sent with “soft” publicity materials to
attract media attention and, perhaps, serve as props for the visual media, particularly
television

13. What are the goals of publicity?


Building Corporate Image
Strategic business relations
Retain loyal customers

14. List the social media used for publicity.


 online forums (e.g., Digital Point)
 blogs (e.g., WordPress)
 social networking sites (e.g., Facebook)
 social bookmarking sites (e.g., Digg)
 video sharing sites (e.g., YouTube)
 photo sharing sites (e.g. Flickr)
 streaming sites (e.g., U stream)
 user reviews (e.g., Amazon)
 crowd-sourcing (e.g., Wikipedia)
 content aggregators (e.g., Friend Feed)

15. What are Chatter sheets?


Sheets with interesting, timely, and brief bits of information (e.g. trivia, historical
milestones, consumer tips, etc.) on themes or topics relevant to an organization that
are sent to DJs to use during their shows.

16. What are the techniques used for Publicity?


 Audio Feed
 Interview
 Media availability
 Media briefing
 Press room

17. What is Publicity stunt?


An interesting or unusual “event” created strictly as a publicity vehicle. It has
sufficient human interest or unusualness to make photo and/or story material
newsworthy or publication or broadcast.

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18. What is news conference?


A media event organized by someone who wishes to make an announcement directly
to the news media. News conferences usually are called to provide reporters with
details on spot news. Media kits usually are given to reporters who attend the news
conference

19. How does guest editorial used in Publicity?


An analysis of or commentary on news events or public concerns, written by someone
outside the publication whose credibility is based on his/her knowledge of a particular
subject and/or position in an organization.

20. What is media junket?


An all-expenses paid trip offered to reporters so they can witness an event, interview a
celebrity, or see a facility. Although not acceptable to straight news media, they are
still offered to and accepted by some travel, sports, and entertainment reporters.
Reporters may receive publicity materials such as bios, media kits, photos, etc., as
well as “freebies.”

21. Define Video news release.


A videotaped news story produced by an organization and distributed to
television newsrooms. VNRs are particularly useful at times of crisis or when an
organization has an angle based on unusualness or human interest. VNRs may be
accompanied by B-roll footage.

22. List a few tools for publicity.


Camera ready features
Community calendar announcement
Fillers
Guest editorial.

23. What are the risks of publicity?


Publicity does not assure positive results. Any publicity when over done may backfire.
Also publicity activities may be looked from different perspectives by different group
of public.

24. What is letter to editor?


The broadcast version of the guest editorial, these are opinions presented by an
individual or group on a topic of general public interest. They are taped at the radio or TV
station.

25. Define promo.


A broadcast announcement that promotes an upcoming program or activity on a radio
or TV station. If an organization is involved in a project with the station – as a sponsor
or a participant – a promo may be done mentioning the organization’s name and/or
address and/or slogan.

26. Who are internal audience?

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Internal audiences may include the employees of the firm, stockholders and
investors, members of the local community, suppliers, and current customers.

27. What is the role of employees in Public relations?


Maintaining morale and showcasing the results of employees’ efforts are often
prime objectives of the public relations program. Organizational newsletters, notices
on bulletin boards, paycheck envelope stuffs, direct mail, and annual reports are some
of the methods used to communicate with these groups.
28. List the advantages of Publicity.
Publicity offers the advantages of credibility, news value, significant word-of-mouth
communications, and a perception of being endorsed by the media.

29. What are the problems in Publicity?


Beyond the potential impact of negative publicity, two major problems arise from the use
of publicity: timing and accuracy.
Timing: Timing of the publicity is not always completely under the control of the
marketer. Unless the press thinks the information has very high news value, the timing of
the press release is entirely up to the media—if it gets released at all. Thus, the
information may be released earlier than desired or too late to make an impact.
Accuracy: A major way to get publicity is the press release. Unfortunately, the
information sometimes gets lost in translation—that is, it is not always reported the way
the provider wishes it to be. As a result, inaccurate information, omissions, or other errors
may result.

30. How do you measure the effectiveness of Publicity?


 Personal observation and reaction
 Team approach
 MBO
 Public opinion and surveys
 Audits

Part B
1. What is meant by Publicity? Explain the tools for publicity?
2. How is publicity different from other promotional tools of marketing? Detail the goals
of publicity creation in the business markets
3. Difference between marketing, PR and Publicity.
4. Explain social publicity.
5. Enumerate the different Social Publicity methods. Explain the recent surge in the
growth of Social media marketing
6. Discuss the dynamics of web based publicity possibilities to the current generation of
consumers. What are the tools for publicity?
7. Explain the goals of Publicity.
8. Explain the web publicity
9. Explain in detail the Publicity Campaign.
10. Explain in detail the role of Social Media in Publicity.

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