MARKETING MANAGEMENT

Dr. Prafulla Agnihotri,

Director,
Professor, Marketing and Strategy,
IIM Tiruchirappalli

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 Integrated Marketing
Communications Strategy
and
Advertising and Sales Promotion

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 Main Points
• What is Communication ?
• Elements of Promotion-mix / Promo-tools
• Objectives of Advertising
• Evaluation of Advertising Effectiveness
• Price-Promotion Strategies

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 Communication
A communication model will answer (a) who (b)
says what (c ) in what channel (d) to whom & (e)
with what effect.

A Communication Model with Nine Elements

SENDOR ENCODING MESSAGE / MEDIA DECODING

NOISE RECEIVER

FEEDBACK RESPONSE

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 Elements in the Communication
Process
Sender’s field Receiver’s field
of experience of experience

Message
Message
Encoding Decoding Receiver
Sender
Media

Noise
Feedback Response

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 The Marketing Communications Mix

1. Advertising :
Any paid form of non-personal presentation of
ideas, goods or services by an identified
sponsor.

2. Sales promotion :
Short term incentives to encourage purchase or
sale of a product / service. It also includes
marketing media like displays, shows and
exhibitions & demonstrations in addition to
incentives. 6
3. Publicity :
Non - personal stimulation of demand for a
product, service, or business unit by planting
commercially significant news about it in a
published medium or obtaining favourable
presentation of it upon radio, T.V., or stage that
is not paid for by the sponsor.

4. Personal selling :
Oral presentation with one or more prospective
buyer for the purpose of making sales.

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5. Direct marketing:
Direct communications with carefully
targeted individual consumers to both
obtain an immediate response and
cultivate lasting customer relationships –
the use of telephone, mail, fax, e-mail, the
internet, and other tools to communicate
directly with specific customers.

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Promotion of an Idea

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 Strategy Planning for Advertising
Target
Market

Product Place Promotion

Promotion Price

Personal Mass
Mass Sales
Selling Selling
Selling Promotion

Publicity Advertising
Advertising

Target Type of Media Copy Who will do

audience advertising types thrust the work

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 Sales Promotion scheme to be
successful needs to be advertised too!

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Push and Pull Promotional Strategies

Producer Wholesaler Retailer

Product flow

Promotion effort Consumer

More emphasis on
Push Strategy Trade incentives,
Higher trade margins,
Technical support,
Coop advertising
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Push and Pull Promotional Strategies

Producer Wholesaler Retailer

Consumer

Product flow

Promotion effort
More emphasis on
Pull Strategy Ext. brand advertising,
CRM- 1 800 number.
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 Promotional Strategies for Different
PLC Stages
Introduction Stage
Market Situation Promotional Strategy

Customers are not aware of • Inform and educate potential

the product’s features, nor do customers about
they understand how it will – The product exists
benefit them. – How to use it, and
– The want satisfying benefits, it
provides.
• Stimulate primary demand
• Heavy emphasis on personal
selling, exhibitions and trade
shows.

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 Promotional Strategies for Different PLC Stages
cont.d…..
Growth Stage

Market Situation Promotional Strategy

• Customers are aware of • Stimulate selective
product’s benefits. (brand) demand
• The product is selling • Increase emphasis on
well. advertising to induce trial.
• Competition is growing. • Middlemen share more of
• Middlemen want to the total promotional effort.
handle it.

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 Promotional Strategies for Different PLC Stages
cont.d…..
Maturity Stage
Market Situation Promotional Strategy
• Competition intensifies • Use advertising more to
and sales level off. persuade rather than
only to provide
information.
• Devote larger sums to
advertising; leads to
higher marketing costs
and declining profits.

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 Promotional Strategies for Different PLC Stages
cont.d…..
Decline Stage
Market Situation Promotional Strategy
• Sales and profits are • Cut all promotional efforts
declining. substantially.
• New and better products • The focus moves to
are coming into the reminding the remaining
market. customers (laggards).

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And what does this ad promote?

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Thank You

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 Integrated Marketing
Communications Strategy
and
Advertising and Sales Promotion

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 General Inform
Objectives
Persuade

Remind

Induce Trial eg. Ariel

Objectives
Intensify Usage eg. Complan

of Maintain Preference eg. Cadbury’s Chocolates

Advertising
Build Ambience eg. VIP Luggage
Specific

Objectives Confirm Imagery eg. Onida

Change Habits

Build Line Acceptance eg. Bata

Shoes / Sportswear

Break the Ice

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Induce Trial

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Maintain Preference

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Confirm Imagery

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Change Habits

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Or this….

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Build Line Acceptance

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 Types of Advertising and Stages of
Adoption Process
Awareness Evaluation
Interest And Trial

Teaser campaigns Informative or Competitive ads

Pioneering ads descriptive ads Persuasive copy
Jingles/ slogans Image/celebrity ads Comparative ads
Internet banners Flash ads Testimonials
Announcements Demonstration of
benefits

Confirmation Decision

Reminder ads Direct-action retail

Informative “why” ads
ads Point-of-purchase
ads
Price deal offers 28
 Major Decisions in Advertising
Management
Message decision
Message generation
Message evaluation and
selection
Message execution
Objectives setting Budget decisions Advertising evaluation

• Communication Affordable approach

objectives Percent of sales • Communication impact
Competitive parity
• Sales objectives • Sales impact
Objectives and task
Media decision
Reach, frequency,
impact Major media
types Specific media
vehicles Media timing

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 Measurement of Ad Effectiveness
• Direct Tests
– Sales Volume
– Coupons
• Indirect Tests
– Recall Tests
• Aided Recall
• Unaided Recall
– Recognition Test
• Noted
• Seen / Associated
• Read most
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 Methods of Ad. Pretesting
• DIRECT RATINGS
Attention Strength :
How well does the ad catch the reader’s attention ? ----- (20)
Read- through Strength :
How well does the ad lead the reader to read further ? ----- (20)
Cognitive Strength:
How clear is the central message / benefit ? ----- (20)
Affective Strength :
How effective is the particular appeal ? ----- (20)
Behavioural Strength:
How well does the ad suggest follow - through action ? ----- (20)
0 20 40 60 80 100
POOR MEDIOCRE AVERAGE GOOD EXCELLENT --- TOTAL
• PORTFOLIO TESTS
• LABORATORY TESTS
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Thank You

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