Marketing Communication

Channel
Sender

Encoding

Message

Receiver
Decoding

NOISE

Feedback

Response

Communication Process

Information Response Models/Persuasion Processes

STAGES

AIDA MODEL

HIERARCHY
OF EFFECTS
MODEL

INNOVATION
ADOPTION
MODEL

INFORMATION
PROCESSING MODEL

Attention

Awareness

Awareness

Presentation

Knowledge

COGNITIVE

Attention
Comprehension

Interest

Preference

AFFECTIVE
Desire

CONATIVE

Liking

Action

Interest
Yielding
Evaluation

Conviction

Purchase

Retention
Trial
Adoption

Behaviour

Integrated Marketing Communication (IMC)

Reasons for growth of IMC

Cluttered media environment

Fragmentation of media
Media cost
Technological advancements
Client expertise
Increasing number of me-too-products
Increasing power of retailers
Increasing global marketing
Increasing pressure on bottom line

Components of IMC
The critical components of IMC are:
1.The communication efforts should be directed at
consumers
2. An outside-in approach should be utilized
3. A well-established relationship between the company
and the customer.

4. All communication activities should be included

with contact points integrated into the strategy.
5. Coordination between the communication
disciplines is needed.

Advertising

AN ADVERTISEMENT is a paid form of non-personal

presentation and promotion of ideas, goods and services by
an identified sponsor

Participants of the
activity
Advertiser

The one who initiates the process

Advertising
agency

Specialised organisations engaged in ad

development and placement

Research specialists and others are the

facilitators of the process

Any environment capable of transmitting

the message

Recipients of advertising communication

Support
Organisations
Media
Target Audiences

Importance of Advertising
As a promotional activity
As a marketing activity
As a business activity

Major Advertising Decisions

Selection of target audiences
Setting advertising objectives
Setting advertising budget
Deciding about message
Deciding about media
Selection of advertising agency
Evaluating advertising effectiveness

Types of Advertising
Basis of Classification
Audience Intended
Geographical Spread
Level of Demand
Advertising Object
Advertising Purpose
Advertising Media
Miscellaneous

Advertising Objectives
Sales as Advertising objectives
Lagged effect of advertising on sales
Marketing objectives and advertising objectives
Communication objectives

Setting Advertising Budget

Factors Influencing Advertising Budget

Product Related
Stage in product Life Cycle
Product Differentiation
Product Substitutability
Durability of Product
Value of Product
Product Quality

Market Related
Nature of Market Demand
Nature of Competition
Size of Market Share

Advertising and Promotion Related

Factors
Role of Advertising in Promotion Mix
Advertising Objectives
Advertising Frequency
Availability of Funds
Promotion Strategy
Media Decisions

Others
Distribution Strategy
Overall Business Strategy
Uncontrollable Environmental
Factors

Budgeting Methods

Percentage of sales Method

Competitive parity approach
Affordability approach
Objective and task approach

Message Strategy

Designing the Message

1. Message Content (what to say)
2. Message Structure (how to say it logically)
3. Message Format (how to say it
symbolically)
4. Message Source (who should say it)

Message Content: What to Say

Advertising Appeal
Creative strategy

Message Structure
Important aspects of message structure are:
1. Drawing conclusions
2. Repetition
3. One-versus-two sided arguments
4. Comparative advantage

Message Format: Creative Execution

1. Idea generation (thinking of big idea)
2. Generation of written copy
3. Illustrating/ Artwork
4. Layout

Advertising Copy and Its Elements

1.
2.
3.
4.
5.
6.

The Headline
The Sub-head
The Body Copy
Captions
Boxes and panels
Slogans and logo

Layout Considerations

Visual dominant or copy dominant

Focal Point
Balance
Contrast
Proportion
Movement
Unity

Media Planning

Changing Media Environment

New media forms
Media fragmentation
Need for using multiple media forms and providing
integrated communication
Problems with terminologies
Problems with data base and its measurement

Media Objectives
Translating marketing objectives and strategies into
goals that media can accomplish
Involves review of internal and external factors
Answering
Whom
Where
When
during
place.

- requires finding out best prospects

-requires search for areas or segments
where the most potential lies
- requires selection of time period
the year for exposure to take

Media Strategies
Determining media objectives
Media mix decision
Matching of media with target market to
maximise exposure and minimise waste
Media use

Media Effectiveness
Reach
Frequency
Gross Rating Points
Target Rating Points
Continuity

Qualitative Factors of Media Choice

Marketing and Advertising Objectives

Competition situation
Advertising Budget
Brand Dynamics
Target Audience Characteristics
Media Environment
Media Fragmentation
Ad Avoidance
Creative Requirements
Production Logistics
Competitors Media Choice

Media Types

Traditional/ Conventional Media

Modern Media options
Combination Strategy

Advertising Agencies

Agencies
Specialised organisations whose business is to create
advertising
Have roots in tradition as sellers of space
Changed to buyers of space and subsequently started
offering the services of planning, preparing and placing the ad.

In house agencies and Outside agencies

Hiring of Outside Agency

Referrals
Presentation
Image and reputation of the agency
The activities of public relation and publicity
undertaken by the agency.

Compensation Arrangements
Commission system:
Fee based system:

based on size of media spend, the

commission rate is usually 15%.
based on cost of services provided, cost is
calculated using the hourly rate

Combination of fee and commission system

Cost plus agreement:
Performance linked:

based on cost of actual services rendered

based on the extent to which
predetermined goals are met.

Evaluating Advertising Effectiveness

Decisions Involved

What to measure?
When to measure?
Where to measure?
Which method to use for measurement?

 Sales Effect
Communication Effect

Types of Testing Techniques

Pre tests

Post tests

Input variables

Sales effects / Communication

- Consumer Juries
Laboratory
- Portfolio test
test
- Physiological measures
- Readability test
- Concept test
- Focus Group test
Field
Test

- Questionnaire
- vehicle test

- Inquiry test

-Recall Test
-Recognition test
-Test Marketing

effects

Problems in Measuring Ad Effectiveness

Cost
Research problems
Disagreement on what, when and where to
measure

Ethical and Legal Aspects of Advertising

Ethical Issues in Advertising

Puffery
Taste in advertising
Advertising to children
Advertising of Controversial Products
Subliminal Advertising
Effects on values and life style
Green Marketing

Legal Aspects of Advertising

In India, various Acts were enacted with the intention
to protect the consumers against different forms of
exploitation.
Except for the Monopolies and Restrictive Trade
Practices (MRTP) Act, 1969 (now repealed) all the
other Acts were mainly punitive and preventive in
nature.
Consumer Protection Act in 1986

Self Regulation
Advertisers must be left alone to regulate themselves
Advertising Standard Council of India ASCI , has
adopted a code for Self Regulation in Advertising.