Unit I - Foundations for Communication- Marketing Communication; Marketing

Communication Process: Source, encoding, Medium, Decoding, Response &

Feedback, Noise, Marketing Communication Mix: Advertising, Personal Selling,
Publicity & Public Relations, Sales Promotion
Unit II - Understanding the Concept of Advertising Management - Advertising:
Definition & Characteristics; Types of Advertising; Mass Media Promotions-
Newspapers: Advantages & Disadvantages; Magazines: Advantages and
disadvantages; Radio: Advantages and Disadvantages; T.V – Advantages and
Disadvantages; Outdoor Advertising
Unit III - Models of Advertising - Understanding Consumer behavior- Consumer
Buying Behavior : Problem recognition ; Information Search – Internal and External
Search ;Alternative Evaluation – Consumer attitudes/ Integration Process-
Conjunctive rule, disjunctive rule, Lexicographic rule ; Purchase Decision ; Post
Purchase Evaluation
Unit IV -Advertising Planning- Advertising Plan, Advertising Production Process ,
Creative strategy, Types of Advertising appeals – Rational / Logical appeal: Price,
Quality, Feature, Advantage . The Creation Stage – Idea Generation, Copywriting,
Illustrations, Layout, Choosing the basic Page design, working with the copy,
working with the Visuals.
Unit V- Testing and Measuring Performance - Copy Testing : Pre-Testing and Post
Testing; Environmental Analysis, Media Planning, Measuring Promotional
Foundations for Communication- Marketing Communication
Marketing Communication Process: Source, encoding, Medium, Decoding,
Response & Feedback, Noise
Marketing Communication Mix: Advertising , Personal Selling, Publicity &
Public Relations, Sales Promotion
Understanding the Concept of Advertising Management - advertising:
Definition & Characteristics
Types of Advertising; Mass Media Promotions- Newspapers: Advantages &
Disadvantages; Magazines: Advantages and disadvantages; Radio:
Advantages and Disadvantages; T.V – Advantages and Disadvantages;
Outdoor Advertising
Understanding Consumer behavior- Consumer Buying Behavior : Problem
recognition ;Information Search – Internal and External Search
Alternative Evaluation – Consumer attitudes/ Integration Process-
Conjunctive rule, disjunctive rule, Lexicographic rule
Purchase Decision
1) Foundations for Communication
 1. Foundations for Communication

old

Profit THROUGH
PRODUCT Sales and promotion SALES VOLUME

Integrated Marketing Profit THROUGH

CONSUMER (demand forecasting, Customer Satisfaction
(needs & desires) Sales promotion) (after sales service)

new
4p’s of marketing mix

producer consumer

PRODUCT promotion
PRICE place
 Marketing
 Definition : Acc. to American Marketing Association (AMA), Marketing is
“ The process of Planning & Executing the Conception, Pricing, Promotion &
distribution of ideas, goods and services to create exchanges that satisfy
individual and organizational goals.”
Individual
CONCEPTION goals
Planning Goods- Physical entity (Watch, shoes)
PRICING
To create exchanges (Consensus) that satisfy
Executing PROMOTION
Services- Intangible Product (Hotel)

DISTRIBUTION Organizational
PROCESS Ideas- concepts (Blue print architect) goals
 Communication

Sender Message Receiver

Right

Source Perceived
Message

Communication is a process whereby information is enclosed in a package

and is channeled and imparted by a sender to a receiver via some medium. The
receiver then decodes the message and gives the sender a feedback. All forms
of communication require a sender, a message, and an intended recipient
 DEFINITION OF COMMUNICATION
Two-way process of reaching mutual understanding, in
which participants not only exchange (encode-
decode) information, news, ideas and feelings but
also create and share meaning. In general, communication is a means of
connecting people or places. In business, it is a key function of
management--an organization cannot operate without communication
between levels, departments and employees.

The basic steps of communication are:

1. Sender
2. Encoding of Message
3. Media Vehicle
4. Medium
5. Decoding of Message - Reception of signals.
6. Noise
7. Follow Up
2. Marketing Communication
 Marketing Communication- The Marketer must be able to
create the right message and deliver it to the right prospect by
right Mode of Communication at the right time, using the right
media vehicle.
Right Message : The Content of the Message, Language, Script, Dramatization, What
indirect dialogues are to be said, Colours, Costume has to be decided.
Right Mode of Communication : Marketing Communication modes are advertising,
personal selling, sales-promotion, publicity, public relations, E-Commerce,
Sponsorships. To pick the right Mode to reach the right prospective Customer.
Right Media : Newspaper, Radio, T.V, Internet, Mobile phones, Sms through internet
are the difference medias. Choosing the right media is very important to reach the right
prospect.

SENDER RECIEVER

Right time
Right Message
Right Media
Marketing Communication are the means by which marketers
try to inform , Persuade and remind consumers, directly or
indirectly, about the brands they offer for sale.
Inform : Some Advertisements inform the Customer but do
not talk about the benefit of the product . Eg. : Educational
INFORM
Institutions give their advertisements which contains
information about the course. This type of method is used
by companies who are new in the market to create brand
awareness between customers.
Persuade : Companies which are established persuade the
PERSUADE Customer to buy the product by creating advertisements
which are impulsive. Eg. : aapke toothpaste me namak hai
kya, moov lagaya kya, Fair and Lovely.
Companies which are having unique products go for such
method.
Remind : Established Companies who are having Excellent
REMIND Market Share go for Reminding advertisements. Here the
Company has to be symbolically present.
Eg. : Mcdonal (M – is enough to remind), Vodafone, airtel
etc.
Marketing communications (MC) uses different marketing channels and tools in
combination. Marketing communication channels focuses on any way a business
communicates a message to its desired market, or the market in general. A marketing
communication tool can be anything from: advertising, personal selling, direct
marketing, sponsorship, communication, promotion and public relations.
Marketing Communication are made up of the marketing mix which is made up of the
4P’s: Price, Promotion, Place and Product, for a business selling goods, and made up of
the 7P’s: Price, Promotion, Place, Product, People, Physical evidence and Process, for a
service based business
Marketing Communication - Communication is one important aspect of the marketing
mix. Indeed, marketing communication is often the largest component of
communication within a company, which may be to present company value, objectives
or specific products and services to investors, customers or the general public. In the
21st century, communications objectives continue to lead towards more customized
messages, targeting customer groups or individuals to create high responses and greater
brand interaction. As business becomes increasingly global with greater access to
Internet, mobile phones and social media, new challenges exist with communication
professionals to inform people in particular foreign markets to facilitate business
activity. Shifts in the global economy and access to new markets lead also to greater
demands for product shipping and services delivered to customers in foreign markets.
To be effective, communication strategies must converge with marketing objectives
while also account for local languages, dialects and cultural norms.
Communications are including both external communication and internal
communication. External communication can be market research questionnaires,
office website, guarantees, company annual report and the presentation for
investors. Internal communication can be the marketing materials, price list,
product catalogues, sales presentations and management communications. On the
other hand, each market demands different types of communications. For example,
industrial market demands a more personal communication but consumer market
demand a non-personal communication.
There are also 4 different fundamental types of communication.
a) One-to-many: this kind of communication is the most original communication.
It is "generated from a single broadcast point and then available over airwaves or in
mass print runs". This type of communication is usually adapted to news
distribution that does not specific not even interactive. Such as in an urgent notice
play over airwave from broadcast in an industry, it is helpful for the general
announcement.
b) Many-to-one: many-to-one is usually connected to the one-to-many
communication. For example, a reply button in your email box, a prepaid number
bought from Spark. All the communication techniques proceeded to the public with
bi-directional communication from mass communications.
c) One-to-one: this is the most intensive and interactive communication at a one-to-
one level.
There are so many examples like a sales presentation; a
negotiation in the market or direct delivery is base on the one-
to-one communication. Most of this communication is face to
face. But in the development of Internet, email and online
shopping are taking place the chance to face to face of people.
Which is provided the chance to sellers and buyers talk more
directly. Another important is instant message ‘chat’ channel
like Wechat and Facebook, which are becoming extremely
popular in business.
d)Many-to-many: on the background of highly developed
Internet, the many-to-many communication has been growing
up such as online chat rooms, ‘blogging’ websites. The many-
to-many communication stands for the participants are able to
exchange their ideas and experiences.
After all, each type of communication applies to different
situation and is time-based.
 3. Marketing Communication
Process

Source, encoding, Medium,

Decoding, Response & Feedback,
Noise
 Marketing Communications/
Wilbur Schamar’s Model
Sender Message Receiver

Source Medium Perceived

Encoding Decoding
Message

Response &
Feedback
noise

Two-sided
Step 1- Sender/ Source
Sender- The Company
who sends the Message
to communicate to the
customer is the sender.
The sender must have
clear-cut objectives so
that the advertising
company is able to
understand what type of
message the sender wants
to give to the receiver.
Their should be perfect
mutual fit between what
the sender sends and
what the Receiver
receives.
Receiver-
Message Receiver
A Customer is a
Receiver of the
Message communicated
by the sender.
The receiver can be
categorized on the basis
of age, occupation,
gender, rural or urban,
income level.
The sender must keep
in mind the category so
that the message is sent
accordingly and the
receiver can understand
the message in the right
way at the right time.
 Step 2. Encoding
Encoding – Encoding means
designing or making the
message body of the
communication to be sent to
the customer in such a way
Written Word
that the message is able to
convey the objectives.
While Encoding the message
the sender should keep in mind
that the encoding should be
simple, understandable, and
not confuse the customer.
a) Nonverbal communication
Nonverbal communication describes the process of conveying meaning
in the form of non-word messages. Examples of nonverbal
communication include communication, gestures, body language, facial
expression, eye contact, and how one dresses. Nonverbal communication
also relates to intent of a message. Examples of intent are voluntary,
intentional movements like shaking a hand or winking, as well as
involuntary, such as sweating.Speech also contains nonverbal elements
known as paralanguage, e.g. rhythm, intonation, tempo, and stress.

b) Verbal communication
Effective verbal or spoken communication is dependent on a number of
factors and cannot be fully isolated from other important interpersonal
skills such as non-verbal communication, listening skills and
clarification. Human language can be defined as a system of symbols and
the grammars (rules) by which the symbols are manipulated. The word
"language" also refers to common properties of languages. Language
learning normally occurs most intensively during human childhood.
c) Written Communication
Over time the forms of and ideas about communication have
evolved through the continuing progression of technology.
Advances include communications psychology and media
psychology, an emerging field of study. Written
communication first emerged through the use of pictographs.
The pictograms were made in stone, hence written
communication was not yet mobile. Pictograms began to
develop standardized and simplified forms.
d) Visual Images – Communication through visual images is
quite popular as visual images tend to attract attention.
Animations, 3 D effects and creativity in advertising is the
example of visual images.
Eg: Paperboat fresh juice was designed with a animation to
attract the attention of customers
Step 3 – Message
The Marketer must be able to create the right message and
deliver it to the right prospect by right Mode of Communication
at the right time, using the right media vehicle.
Right Message : The Content of the Message, Language, Script, Dramatization, What
indirect dialogues are to be said, Colours, Costume has to be decided.
Right Mode of Communication : Marketing Communication modes are advertising,
personal selling, sales-promotion, publicity, public relations, E-Commerce,
Sponsorships. To pick the right Mode to reach the right prospective Customer.
Right Media : Newspaper, Radio, T.V, Internet, Mobile phones, Sms through internet
are the difference medias. Choosing the right media is very important to reach the right
prospect. Right time RECIEVER

SENDER
Right Media

Right Message
Step 4- Decoding
Decoding – When the Receiver or Customer receives the message than a
psychological process of understanding the message goes on in the mind
of the Customer. This process is called Decoding.
Decoding in the mind of the customers goes on keeping in mind different
factors like his education level, understanding level, language of the
message, vocabulary etc..
Also besides this psychological factors decoding also depends on the
environment the customer is brought up in, the geographical,
demographic, religious beliefs, laws governing that country etc……
because in the decoding process he will decode it with the above said
frame of mind.
Also factors related to past shopping experience, also may affect the
decoding process
The Advetisers should encode the message so that the customer/ receiver
is able to understand what the advertiser wants to convey in the right
sense.
Step 5-Noise : Communication barriers are factors that hinder the
effectiveness of a marketing communication. Major communication barriers are: Noise.
Noise can be in any form
Noise is an unrelated sensory stimulus that distracts a consumer from the marketing
message (for example, people talking nearby making it hard to hear a radio
advertisement). Any obstacle, distortion in the delivery of the message from
the Sender/ Company to the Receiver/ Customer is called Noise.
A) Clutter is the high number and concentration of advertisements presented to a
consumer at any time. As attention cannot be divided, there is a limit to how much
can be taken in and processed, which means that a strong marketing communication
needs to stand out from the clutter and be heard above the noise.
B) Consumer apathy is the tendency of a consumer to avoid marketing
communications. This can be for a number of reasons. The consumer may not be
interested, or consider themselves "in the market," and as such attempt to shut out
the irrelevant marketing stimuli. This is known as selective attention.
C) Brand parity means a brand is not significantly different from its competition.
Without a distinct value proposition, consumers do not develop brand preference or
associations, and instead purchase purely based on price. One important objective of
marketing communications is to develop a strong, unique brand identity that allows
the brand to be positioned separate from its competition.
D) Weak Creative Ideas / unclear communication objectives : In case the
Sender is not clear about the content and clear-cut objectives of communication than
also the receiver is not able to decode the message clearly
Step 6 : Follow Up/ Feedback
The advertiser must take feedback of the advertisements because the noise
or distortions may happen which will be damaging for the company.

Advertising Research process is used to test the performance of the ad.

The different Methods are
1. Mail Surveys (hide brand name and send the ads for feedback)
2. Starch Test ( A person is told to read magazine : read most, seen,
noted)
3. Psychological Measures (Pupil dilation, Galvanic skin response, Brain
waves)
4. DAR test (Day after Recall)- 48 hrs after telecast, contacted by
telephone
5. Portfolio Test (print)
6. Theater Test (T.V ads)
7. On-air test (Test market of commercial in 1-4 locations only)
8. Coupon Stimulated Purchasing (ads shown and coupons issued )
9. Split cable testing (select panel of consumers and track their purchase
for 6 months
3 MARKETING
.

COMMUNICATION MIX
MARKETING COMMUNICATION MIX
The Marketing Communications Mix is the specific mix of advertising, personal
selling, sales promotion, public relations, and direct marketing a company uses to
pursue its advertising and marketing objectives.
 Corporate
MARKETING Identity
COMMUNICATION MIX Symbol, brochure

WOM

Internet

Direct Marketing

Packaging

Sponsorship
Publicity &
Public relations
Nano

Sales promotion

Personal Selling
Eureka

advertising
 Advertising
Advertising - Any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified sponsor.

1. SIGNS (Projecting, Roof (hotels)

Wall, Free standing (hutch),
Marquee, Back lit Refers to adv. activities of a marketer through
2. Posters (24-sheet (19ft 6” * 8 ft 7”) the use of a public display media.
BENEFITS
3. Hoarding / Billboards 1. Reaches more viewers
2. Cost Efficiency
4. In-Store Media (supermarkets) 3. Proximity to the Purchase location
4. Scope for Creativity
5. Balloons & Inflatable 5. Reach specific Target Customers
6. Captive Audience
6. Advertising at airports
7. Constant exposure
7. Mass transit advertising (trains..) 8. Longevity
9. Enhances the effectiveness of
8. Mobile billboards mounted trucks other media.
 Sales Promotion
According to American Marketing Association , “ Sales Promotion includes those sales activities that
supplement both personal selling and advertising and coordinate them and make them effective”.
Sales Promotion includes
 Offering free gifts
 Distributing free samples
 Conducting trade fairs and exhibitions
 Offering temporary price discounts

Benefits of Sales Promotion

1. Encourage Customers to try new products
2. Attract new Customers
3. Encourage Customers to use the product
4. Counter Competitors promotional activities.

Importance of Sales Promotion

 In Recession phase, marketers can sustain only while using sales promotion schemes
Sales promotion- Short-term incentives to encourage the purchase or sale of a product
or service. May be targeted at the trade or ultimate consumer; Makes use of a variety of
formats: premiums, coupons, contests, etc.; Attracts attention, offers strong purchase
incentives, dramatizes offers, boosts sagging sales; Stimulates quick response; Short-lived;
Not effective at building long-term brand preferences
 Types of SALES PROMOTION
TRADE PROMOTIONS CONSUMER PROMOTIONS
1. TRADE ALLOWANCE 1. Price – offs
Off- Invoice : Price reduction 2. Coupons
Slotting : Fee paid by manufacturer 3. Cash Refunds (proof of purchase)
to secure shelf space 4. Bonus packs (extra quantity)
Promotional : support channel members 5. Prize promotions (FM Radio)
2. TRADE CONTESTS
3. TRAINING PROGRAMS (Pru ICICI give
6. Sampling
awards for Pru Chairman for high sales) 7. Premiums (gifts with products)
4. COOPERATIVE ADVERTISING
Manufacturer provides financial and
adm. Support to retailer to run adv.
program locally.
Objectives : Encourage trial by new cust.,
Objectives : Secure channel support for new
Improve the sales, Increase Brand loyal,
And existing products, to shift the inventory
Enhance Brand Equity
From manufacturer to Retailer

MEASURES TO IMPROVE EFFECTIVENESS OF SALES PROMOTION : Customize

The Sales promotion to suit Target market, Identify synergies between 2 sales promotion,
Understand the impact of Sales Promotion activities on Channel partners, Systematic
Tracking and Assessment of Sales Promotion Activities.
Role of Public14Relations
CHAPTER PUBLIC in Crisis Management :
RELATIONS
PR is the deliberate, planned & sustained effort to establish & maintain mutual
Understanding between an organization & Public.
The emphasis is 2-way communication to ensure that the public receives the message
Which the organization seeks to convey.
TYPES OF PR PROCESS OF PUBLIC RELATIONS
1) Corporate PR : maintain relation with 1) Understanding Public attitude : survey
stakeholders (employee, shareholder, 2) Developing a PR Plan : Need assess-
(Internal PR / Public affairs / Financial PR Planning – implementation – Evaluate
(relations with Banks) / Media PR
3) Implementing the PR program :
2) Marketing PR : aimed at improving the
Sales among retail consumers or Personal Communication, Printed comm.
Institutional clients (Trade shows, Press release, Visual comm. (photo), Film
Sport sponsorship) T.V , Exhibition, sponsorships
MEASURMENT & EFFECTIVENESS of PR TOOLS FOR MEASURING PR EFFECTIVE.
1. Setting specific measurable PR goals 1) Media Content analysis : Length of report,
2. Measuring PR output (impression,
Ad value, Cost, Frequency, Reach, tone
Placement , Subject, Key message, visuals
Share of Ink, Share of voice) 2) Cyberspace analysis
3.Measuring PR Outtakes (Retention of message)3) Trade Shows & Event Measurement
4. Measuring PR outcomes (end response) 4) Public Opinion poles
5. Measuring Business or organizational
Outcomes (Org. objectives) Tools for measuring PR outcomes
Tool for PR outtake : Awareness & compreh. •Attitude & Preference Measurment
(consumer interview / Recall & Retention •Behaviour Measurment
 DIRECT MARKETING

Definitions Direct marketing -

Direct communications with DATABASE & DIRECT MARKETING
A proper database helps to analyze
carefully targeted individual Customer needs, pref. & behavior.
consumers to obtain an Benefits : Effective customer target,
immediate response and Maintain Customer Relations, improve
Marketing efficiencies, Aid in testing
cultivate lasting customer & evaluation.
relationships.

DIRECT MEDIA : Direct Mail, Tele-mkt,

Mass media adv., Internet,

ADV. & DISADV. OF DIRECT MKTG.

Response driven, measure of effectiveness, selective reach, customization, competitive
exclusive, Expensive Junk Mail Status.
Goods and Services made directly available to customers is called Direct/ Interactive
Marketing
Forms of Direct Marketing
Catalog Marketing
Send their catalogs containing info. About the product & services.
Minimum store operating costs and do not have to spend huge amount on
store décor.
Telemarketing
Process of communicating with customers through the telephone.
Highly trained staff, aims at developing a long-term relationship. Eg : Toll-free
numbers
Kiosk Marketing
The use of kiosks or electronic touch screens set up at places convenient for
customers. Four square feet of space – operated 24 hours a day, seven days a
week, without any supervision. Eg: Indian Railways.

Home shopping : done through T.V programs in which various products are
displayed – uses demonstrated to viewers. Eg : Tele-brands.

Other Media : Newspaper, magazines, journals, company newsletters, post

cards, postal envelopes, leaflets, door to door pamphlet distribution, inserts,
mobile phones, Exhibitions & Sales seminars
 E-Marketing Advertising done on Internet

1. Banner ads : placed at the top in form of graphical bar or button and if you
click it you are taken to that website.
2. Sidebar ads : same as banner but placed vertical, also called
skyscrappers.
3. Rotating ads : whenever a visitor visits a page he gets to see diff. adv. Eg.
Rediff
4. Pop-Ups and Pop under ads : Pop ups appear in separate window Pop
under appear below the window containing the web page.
Eg : pop-up ad of Citibank account appears when www.indianrail.gov.in
5. Floating ads : appear on web page and obstructs the text the viewer is
reading. The viewer can skip the ad by using close button

ADVANTAGES
1. Larger reach (no re-printing)
2. 15-30 age group can be targeted
3. Web medium facilitates 2-way comm.
DIS-ADVANTAGES
1. Without the consent of viewer thus irritating
2. Some email sent without prior info. Of viewer
Thus intruding on privacy.
3. Ads if not clicked will go unnoticed
Prospecting & Pre-Call Planning Approach
QUALIFYING (Establish Objective (Initial contact, Leads
(Generate, Identify) & Prepare) Build rapport)

PERSONAL
Attention
Interest
Presentation
Desire (Canned, Formulated
SELLING Action
Need Satisfaction)
PROCESS

Closing Handling Objections

(Silent, Direct,, Assumptive (direct answer, demo,
FOLLOW UP Alternative, Concession) Yes-But, Case-History,
Propose free trial)
Personal Selling - Most effective tool for building buyers’
preferences, convictions, and actions; Personal interaction allows
for feedback and adjustments; Relationship-oriented; Buyers are
more attentive; Sales force represents a long-term commitment;
Most expensive of the promotional tools
Personal presentation by the firm’s sales force for the
purpose of making sales and building customer
relationships.
Reaches large, geographically dispersed audiences,
often with high frequency; Low cost per exposure,
though overall costs are high; Consumers perceive
advertised goods as more legitimate; Dramatizes
company/brand; Builds brand image; may stimulate
short-term sales; Impersonal, one-way communication;
Expensive
 Lower Cost Long term
Efficiency Relationships

Effective
Communication
Limited Reach
tool

Less control
Over
Sales Force Increase
interaction

Internal
Conflicts

PROS & CONS

OF
PERSONAL SELLING