Manufacturing a fine product is not enough, it also needs to be communicated to the consumer.

It is essential to communicate the distinctiveness of the product and the extent of value it creates. This set of communication task constitutes the promotion mix

What are Marketing Communications?

Marketing communications are the means by which firms attempt to inform, persuade, and remind consumers, directly or indirectly, about the products and brands they sell.

Integrated Marketing Communication

Promotion Communicates (Traditional communication mix) 1. Advertising 2. Personal Selling 3. Sales Promotion 4. Publicity Integrated Marketing communication includes the other 3 Ps also: Product Communicates (Physical features like color, shape, size, feel, package, Brand name etc) Price Communicates (price quality, price status, reasonable price) Place Communicates (Store image, store choice, exclusivity)

Traditional Promotion mix includes

Advertising Any paid form of non-personal

presentation of products through an appropriate medium Personal Selling Personal presentation of products in conversation with one or more prospective purchasers Publicity Non-personal stimulation of demand for a product by obtaining commercially significant news / presentation about it in any medium not paid by the service provider

 Sales Promotion Marketing activities other than the

above that stimulate customer purchasing and use and enhance dealer effectiveness (Contests, coupons / vouchers, free samples, sign-up rebates, short term increase in sales commission for intermediaries, gift offers, consultation, money off incentives)

Steps in Developing Effective Communications

Identify target audience Determine objectives Design communications Select channels Establish budget Decide on media mix Measure results/ manage IMC

Response Hierarchy Models

Audience response
The communicator seeks one or more of the three audience response to communication
1. Cognitive response message should be considered and understood 2. Affective responses - message should lead to some changes in attitude 3. Behavioral responses message should lead to some change in Behavior

What is Advertising?
Advertising is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor.
Advertising originates from the Latin word adverto meaning turn around
Advertising bears the brunt if marketing fails as it eats up quite a bit of the marketing spend

Advertising Objectives
Informative
aims to create brand awareness

Persuasive
Aims to create a liking and preference for the brand

Reminder
Remind people to purchase the brand

Reinforcement
Aims to convince people that they have made the right choice.

Characteristics of an Ideal Ad Campaign

The right consumer is exposed to the message at the right time and place The ad causes consumer to pay attention The ad reflects consumers level of understanding and behaviors with product The ad correctly positions brand in terms of points-of-difference and points-of-parity The ad motivates consumers to consider

purchase of the brand The ad creates strong brand associations

Factors in an advertisement that accomplish Audience persuasion

The Source/endorser/presenter of the message

The Message

Message Source / Endorser

Endorser's Characteristics
Credibility (Expertise, trustworthiness,

status) example: Indian Medical association endorsing Dettol soap Likeability Celebrity endorsements Sources approach to views and dispositions of the audience When the source has similar views with the audience and mentions it at the beginning of the communication

Celebrities can also spell trouble for the brand (Tiger woods ..brand ambassador for Nike, Accenture, Tag Heuer etc)

The Message
Message structure order of presentation (climax

order, anticlimax order, pyramidal order) Message appeal 1. Rational appeal 2. Emotional appeal

Message
Rational appeal

1. Numerical claim Complan 23 vital nutrients, Maggi 2 minute noodle, Britannia cheese - one slice is equal to a glasses of milk etc 2. Comparative advertising Pepsodent with other tooth pastes, clinic plus vs chik shampoo, Complan and Horlicks, Ujjala and other fabric

whiteners, Rin and Tide

Message
Emotional appeal Surf Excel, Huggies diaper advt
Humor appeal Bingo, Docomo, Kurkure Fear appeal HDFC standard Life insurance, saffola

gold oil

Hindu against Times comparative advertising

Comparative advt.

Ambush Marketing Pepsi against Coke during 1996 world cup

ambush marketing refers to a company's attempt to capitalize on the goodwill, reputation, and popularity of a particular event by creating an association with it, without the authorization or consent of the necessary parties

Regulations on comparative advertising

In most countries there are rules regarding comparative

advertising. In India the advertising standards council (ASCI) comparative advertising direct or implied is permissible under the following conditions: The aspects compared are clear Comparisons do not confer artificial advantages on the advertiser It is factual, can be substantiated The consumer is unlikely to be misled There is no unfair representation of the competing products

Surrogate advertising
Surrogate advertising is advertising which embeds a

brand or product message inside an advertisement which is apparently for another brand or product.

Establish the Budget

Affordable
Percentage-of-Sales Competitive Parity

Objective-and-Task

Factors to Consider in Setting an Advertising Budget

Stage in the product life cycle new products merit large
Advertising to build brand awareness and gain consumer trial

Market share and consumer base High market share

products requires lesser investment in advertising

Competition and clutter- with a large number of competitors

Advertising, a company requires to spend more

Advertising frequency The number of repetitions

to build awareness

Product substitutability- Brands that are

Less differentiated requires more advertising spend

Media Selection
Traditional Media and New Age Media
Choosing among major media types 1. Target audience media habits ex - New age media for teens 2. Product characteristics - ex womens clothes best advertised on color fashion magazines 3. Cost - ex Television when budget available is more 4. Message characteristics - ex A message announcing sale tomorrow should be given in newspapers

Television
Advantages Reaches broad spectrum of consumers Low cost per exposure Ability to demonstrate product use life like Ability to portray image and brand personality Disadvantages Fleeting nature Clutter High cost of production High cost of placement Lack of attention by viewers

Print Ads
Advantages Detailed product information Ability to communicate user imagery Flexibility Ability to segment Disadvantages Passive medium Clutter Unable to demonstrate product use

Print Ad Components
Picture

Headline Copy Signature

Radio Ads
Advantages Flexibility Stations are very targeted Inexpensive to produce and place Especially effective in the mornings Effective in rural segments Disadvantages Lack of visual images

Outdoor Media, Cinema Ads

Outdoor Media Oldest Media used by Egyptians as early as 3200 BC Hoardings, Posters, Neon signs and other illuminations, Transit advertising, Loudspeaker announcements, Balloons and skywriting's Cinema Halls Relatively captive audience paying attention

New Age Media Internet and related platforms

Geographical boundaries are losing their significance in

marketing communications Advertising in a seamless environment 50 million bloggers, 70 million teenagers on My Space Internet is more focused, flexible and economic way of contact will focus more and more marketers to use this medium However the idea of transforming marketing campaigns to public conversations can be frightening. While the companies can control the ads in other media, one cannot control an online engagement

Characteristics, Potential and problems of the net and related Ad platforms

1. 2. 3. 4.

On the internet the exposure to ads is generally tied to an action by a consumer, and these actions can be counted, tracked and analyzed in ways that conventional mass media can never do. From broadcasting to narrowcasting Cost per million, cost per thousand etc is replaced by CPA cost per action People will be both the senders and receivers of the message not commercial ads Internet advertising service platforms Googles Adwords and Adsense Microsofts adcentre Yahoos Blue lithium E-bays Adcontext

New Age Media

Social networking sites Orkut, Myspace, Facebook etc

have the largest and fastest growing audience. Myspace roped in 400 million consumers in four years YouTube New Advertising hotspot Problems of invasion of privacy Net users are hesitant to share their personal information online Companies are researching blogs Evalueserve and Empower Research Viral Advertising creating a story or message that is interesting and people email it to each other and it will propagate itself

New Age Media

Mobile Phone A bigger medium than television, print or web ( one which is seen by a user every 5 minutes)
All big spending advertisers are like HUL, ABN Amro, Microsoft, Infosys, ICICI bank etc are trying this medium Mobile TV

Communicating to the Rural Audience

Large variations in language and culture Campaigns have to be tailor made for product and region Product demonstrations in haats, mandis, and melas

(fairs) are useful TV and print media do not reach all villages and all customers Wall paintings and signboards very popular Folk theatre, magic shows and puppet shows are also used as a media vehicle

Advertising Agency - Tasks

Account Management
Creative development Media planning and buying

Media Schedule
Media Category Specifies the media selected. Example: Television,

magazines Media vehicle Specific media within each media are specified. Example: star plus in TV, Business India in magazines, Economic times in Newspapers etc Program choice Program to be specified like Big Boss in Colors, Brand equity in Economic Times Number of insertions no. of planned insertions per media vehicle Timing Continuous approach and pulsing approach and flighting approach