2. Marketing communication mix / Promotion Mix
Advertising – non-personal presentation
Sales Promotion – short term incentives
Public Relations – to create/protect company image
Personal selling, Direct marketing
Communication model
Who says what in what channel to whom with what
effect
Sender Encoding Message media Decoding
Receiver Feedback (Response) Sender
Noise – Distortion during the communication process
Target audience may not receive intended message because of
Selective attention – hear what u want to hear
Selective distortion – add things to the message that are not
there – Amplification – brand loyalty plays a role
3. Leveling – do not notice other things that are there
Selective recall
Steps in developing effective communication
Identify the target customer/audience
potential / current users, deciders, influencers (influence
what, when, how, where, whom)
Image analysis – set of beliefs, ideas and impressions that a
person holds of an object – for eg. Microwave oven
Target audience knowledge of the product – Familiarity eg.
gadgets
How they feel about it – Favorability
Determining the communication objectives
Response Hierarchy Model – AIDA model
4. Attention – Cognitive component – creating awareness &
knowledge
Interest, Desire – Affective component (Feel factor)
Liking – favorability
Preference – liking one over the other – quality, value,
performance & features are to be promoted
Conviction – bringing certainty
Action – Behavior component – Purchase takes place
Satisfaction – Post purchase behavior
Designing the message
Gain attention
Hold interest
Arouse desire
Elicit action
5. What to say? – Message content
Appeal, theme, idea or USP
Formulating some kind of benefit, motivation, reason or
identification
why the audience should think about the product ??
Rational appeal – quality, economy, value, performance
Emotional appeal – stir up some +ve/-ve emotions that will
motivate purchase - ESP
Fear / Guilt / Shame / Embarrassment – Negative
Stop doing things they should not – drug, smoke
Humour / Love / Pride / Joy – Positive
Moral appeal – CRY, blood donation, eye donation,
cause related marketing
6. How to say ? – Message Structure
Conclusion drawing – questions with one or two sided
arguments - +ve and –ve aspects
How to say it symbolically ? Message Format
Press – Headline, illustration, color etc...
Radio – Voice qualities, words, vocalization...
TVCs – body language, facial expressions, gesture,
dress, posture and hair style
Who should say it ? – Message Source
Expertise, trustworthiness and likeability
Testimonial, Endorsements, Actors, Spokesperson, Experts,
Ambassador, Common-man appeal
7. Selecting the communication channel
Personal
Individualized presentation & feedback
Advocate channels – Co. salespeople to buyers
Expert channels – Ind. Experts making statements
Social channels – neighbors, friends, family
members and associates
“Word of mouth or Buzz”
Viral marketing – passing on company developed
products, services or information from user to user, on a
massive scale
Non-personal
Media and events
Media – print, broadcast, network, electronic and
display media
8. Event marketing
Events contribute 20-25% of total ad budget
Soft drinks Cos - 40%
Establishing total promotional budget – Self study
Affordable method - P&G during the launch of Ariel
% of sales method
Competitive parity method
Objective and task method
Decide on the promotion mix
Advertising – print & broadcast, packaging, motion pic
brochures & booklets, posters & leaflets, directories, billboards,
display signs, POP materials, symbols and logos, videotapes
and banners
9. Sales promotion – Contests, games, sweepstakes, lotteries,
gifts, sampling, fairs & trade shows, exhibits, demos,
coupons, rebates, low interest financing, entertainment,
trade in allowances
Public relations – press kits, speeches, seminars, annual
reports, charitable donations, sponsorships, publications,
community relations, lobbying, company magazine and
events
Personal selling – sales presentations, sales meetings,
incentive programs, samples, fairs and trade shows
Direct Marketing – catalogs, mailings, telemarketing,
electronic shopping, TV shopping, fax mail, e mail...
10. Factors in setting the marketing communication
mix
Type of product market
consumer goods – SP, advtg, PS and PR
industrial goods – PS, SP, advtg and PR
Buyer readiness stage
PLC stage
Measuring the communication’s results
awareness, trial, satisfaction and repurchase
Managing integrated mktg communication process
11. Advertising
- Any paid form of non-personal representation and
promotion of ideas, goods or services by a sponsor
- State of advertising agencies in India – P&G’s efforts
Developing & Managing an advt program
Setting the advertisement objectives
Four goal elements
Target – 200 million middle class people
Communication objective – the ability to identify brand X as a
cost effective toothpaste
Desired change – from 10% to 20%
Time horizon – 1 year
Objectives could be with the aim to inform, persuade, remind
or reinforce
12. Inform – awareness creation - new uses/new users
informing the price changes
reducing fear
explain how it works
describing available services
correcting false impressions
company image building
Persuade - build selective demand for a brand
encourage switching
persuading customers to buy now
comparison advertising
Remind - to stimulate repeat purchase
13. Reinforce - convince current customers – right choice
showing the satisfied customer
Deciding on the advt budget
Factors to be considered
PLC stage
Market share and consumer base
Competition and clutter
Advertisement frequency
Product substitutability
Choosing the advertising message
Message generation through consumer research
rational - detergents, toilet/floor cleaners
sensory - ysnore, otrivin
14. social - deodorants
ego satisfaction - shirtings/suitings(premium)
Message evaluation and selection
Desirability – Interesting about the product
Exclusiveness – distinctive from the competitors
Believability – provable
Message execution – how is it said?
Different execution style
Slice of life – one or more persons using the product in a normal
setting – Paragon, Vaseline (Non-celebrity endorsers)
Lifestyle – how a product fits in with the lifestyle
Fantasy – creates a fantasy around the product – Liril, Choco-
double
15. Mind / Image – Beauty, Love, serenity
Musical – singing a song involving a product – Jingle/song
Personality symbol – a character that personifies the product –
animated / real – Boomer/MRF
Technical expertise – shows Co’s expertise & exp in making the
product – ITC yippee
Scientific evidence
Testimonial evidence
Tone - positive / superlative
Word – attention getting, catchy – Citi never sleeps
Format – adsize, colour, illustration
Deciding on the media – most cost effective media to deliver the
desired no.of exposures to target audience
16. Target audience media habits
Product type
Message characteristics
Cost involved
Circulation, Audience, Effective audience, Effective – ad-
exposed audience
Media timing
Evaluating advertisement effectiveness
Pre testing and Post evaluation
Communication effect – recognition and recall
Copy testing – SELF STUDY !
Direct rating method – rating alternative ads
Portfolio test – recall ads & content aided/unaided
17. - Laboratory test – to measure physiological reactions like
heartbeat, BP, pupil dilation, perspiration to an ad...
- Increase in brand awareness, brand comprehension &
brand preference before/after
- Noted - % of readers who recall
- Seen/associated - % who correctly identify the product and
advertiser
- Read most – who read more than half of the written material
Sales effect research
Before and after method – Reliability & Validity
18. Sales Promotion
Incentive tools (short term) designed to stimulate quicker
and/or greater purchase of products
Advertisements – reason to buy (why?)
Sales promotion – incentive to buy (what?)
SP includes
Consumer promotion, Trade promotion &
Sales force promotion
SP offers are given by Manufacturers/Dealers/Distributors
Purpose of SP
- to attract new users
- to reward loyal customers
- to increase repurchase rate of occasional users
- to avoid seasonal slump in sales – synchro mktg
19. SP often attracts brand switchers
Major decisions in SP
Establish the SP objectives
For consumers
- encourage purchase of larger size
- building trial among non users
- attracting switchers away from competitors brands
For retailers
- inducing to carry new items/more inventory
- encouraging off-season buying
- offsetting competitive promotions
- building brand loyalty of retailers
- gaining entry into new retail outlets
20. For sales force
- encourage more prospecting
- stimulating off season sales
Selecting the SP tools
Consumer promotion tools
Samples – door to door, mail, attached to another
product, featured in an advt offer
Coupons – certificate entitling the bearer to a stated
saving on the purchase (earlier thru mail, magazine, now
along with the product)
Cash refund offers (rebates) – price reduction after
purchase on proof of purchase
Price packs – savings off the regular price
Reduced price pack – 2 for the price of 1,
save Rs.5, Buy 2 get 1 free, 30% more at no
extra cost
21. Banded packs – two related products packed together
Premiums (gifts) – at a low cost or free
With pack premium – accompanies the product inside or
on the package
Frequency programs
Prizes – chance to win cash, trips or products
Contests – entry submission, panel of judges..
Sweepstake – draw
Game – puzzles, missing letters.. To win the prize
Free trials
Product warranties
22. Tie in promos – 2 or more companies team up
POP displays
Trade promotion tools
Price – off
Allowance – advertisement / display allowance
Free goods
Business and sales force promotion tools
Trade shows and conventions
Sales contests - for the sales force and dealers
Specialty advertising – low priced useful items like ball
pens, calendars, memo pads, key chains...
Developing the SP program
Size, conditions, duration, timing, total budget incl. admin
cost and incentive cost, expected results
23. Pretesting the SP program
Implementing and controlling the program
Evaluating the SP results
Sales data – before during after
Consumer survey – about the promotional offers
Experiments – by varying the offer
Public Relations
designed to promote or protect a company’s image
Press relations – presenting news & info about the Co.
Product publicity – through sponsoring efforts
Corporate Communication
Lobbying – dealing with legislators and government officials
to introduce/change the policies
24. Direct Marketing
Direct selling Vs Direct Marketing
Direct selling – Multilevel selling or network marketing
Amway, Avon, Tupperware, Modicare...
Direct Marketing – use of consumer direct channels to
reach and deliver goods/services w/o middlemen
Direct mail, catalogues, telemarketing, TV, kiosks,
websites and mobiles
Benefits – for consumers
Fun, convenient and hassle free
Saves time and introduces consumers to wide choices
Comparative shopping by browsing through . . .
Order goods for self or others
25. Benefits – for sellers
Customization and Personalization – possible
Building continuous relationship
Timed to reach prospects at right moment
Offers and strategy – less visible to the competitors
Major channels for direct marketing
Face to face selling
Direct mail
Carpet bombing – mass mailing
Database marketing – mining the database to
identify the prospects *
Interactive Marketing
Catalogue marketing
26. Telemarketing and m-commerce – use of telephones and
call centers
inbound telemarketing – receiving calls
outbound telemarketing – initiating calls (prospect)
Kiosk marketing
e-marketing
Permission Marketing Vs Interruption marketing -
OHHMYBOX
Personal Selling
Steps involved in effective sales process
Prospecting and Qualifying
Developing leads
Pre-approach – learning as much as possible about the
27. Approach – courtesy, appearance, opening remarks, follow-up-
remarks
Presentation and demonstration
Gain Attention
Hold Interest
Arouse Desire
ObtainAction
Marketing orientation Vs Product orientation
Different styles of sales presentation
Canned approach – memorized sales talk
Formulated approach – designed presentation
Need – satisfaction approach
Handling objections – Resistance
Closing and Follow-up
28. Traditional PR
Traditionally, PR is defined as a firm’s efforts to build
good relations with its various publics by obtaining
favorable publicity, building up a good “corporate image,”
and handling or heading off unfavorable rumors, stories,
or events.
A firm typically accomplished these goals by working with
the media to send a persuasive message to consumers.
Media
• In public relations media is/are considered to be any
communication methods widely distributed to the
consumer or business community. “Media” is the plural
form of “medium.”
• Types of media include television, radio, newspapers,
29. Marketing Public Relations
two-way brand relationship utilizing both traditional and
new media channels in a way that can adapt to the ever-
changing marketing landscape.
innovative ways, fostering interactions among
organizations, products, consumers, and the media at a
pace that is unprecedented in the history of modern
marketing.
Consumergenerated marketing
•Consumer generated marketing (CGM) is marketing
efforts designed to encourage consumers to create
marketing messages and other brand exchanges
themselves.
•This includes…
•word-of- mouth
30. MPR Goals…
Building the identity of the organization or product
Increasing the visibility of an established organization
or product
Establishing an organization or individual as an expert
in a given field
Educating stakeholders on issues critical to the
organization
Shaping public opinion about an organization, idea, or
individual
Maintaining the image of an organization or product—
over time or during a crisis
Stimulating the trial or repeat usage of a product
31. Basic Rules of MPR
Be aware of what’s news-
worthy
Share the news
Package it properly
Get it to the right people
Be available
Stay engaged
Realize that MPR has
global reach
Ethics is mandatory
Ethics & Values of a PR
Professional
Professional Values
Advocacy
Honesty
Expertise
Independence
Loyalty
Fairness
33. Considerations before Marketing,
People
Society
Environment
Taking moral actions that encourage a positive impact on
all the company’s stakeholders, including employees,
community, consumers, and shareholders
Consumers have the right and power to decide which
companies succeed or fail
so marketers have a major responsibility to ensure their
practices are seen as philanthropic without being fake
Socially Responsible Marketing
34. A shared standard of truth in marketing communications
A clear distinction between advertising and
sensationalism
Endorsements should be clear and transparent
Consumers’ privacy should be maintained at all times
Government standards and regulations must be adhered
and practiced by marketers.
Ethical Marketing
35. Honesty
Be forthright in dealings and offer value and integrity.
Responsibility
Accept consequences of marketing practices and serve the
needs of customers of all types, while being good stewards of
the environment.
Fairness
Balance buyer needs and seller interest fairly, and avoid
manipulation in all forms while protecting the information of the
consumers.
Respect
Acknowledge basic human dignity of all the people involved
through efforts to communicate, understand, meet needs and
Ethical values in Marketing
36. Transparency
Create a spirit of openness in the practice of marketing through
communication, constructive criticism, action, and disclosure.
Citizenship
Fulfill all legal, economic, philanthropic and societal
responsibilities to all stakeholders as well as giveback to the
community and protect the ecological environment.
Ethical values in Marketing
37. Consumer Orientation
Innovation
Value of the product
Sense of Mission
Impact on Society
Major aspects of Socially Responsible Marketing
39. Moral Marketing
This is especially important in economic downturns, when
unethical practices become tempting.
Win-win Marketing
The focus on customer value will increase company value.
Marketing legally
Reduces the risk of cutting corners and turning a blind eye.
Goodwill
Goodwill and strong reputation among clients and associates are
the benefits which companies cannot afford to overlook.
Improved quality of recruits increases customer retention
A good company attracts good employees, suppliers, investors,
and customers, who will be happy to help the company to
achieve its goals
Integrating Ethics into Marketing
40. Irresponsible Market Research
Improper market research and grouping can lead to stereotyping
that shapes undesirable beliefs, attitudes and consequently
affects marketing behavior.
Selecting Specific Market Audience
use of selective marketing practice is to weed out the consumers
considered by companies as less than ideal, but often causes
social disparity and unrest
Unethical Advertising and Promotion
Making false claims about what the product does and its
importance is an unethical way to gain profit.
Ethical issues in Marketing
41. Delivery Channel practices
Marketing in ways like cold calling through telemarketing
companies that purchase leads are not only annoying, they are
disruptive and untrustworthy
Dealing with competitors
Many companies advertise cheap prices as a “bait” and then
once they draw in the customers, “switch” them over to a more
costly product, because the advertised good was not available,
insufficient or not of any value to the customer
Pricing strategies
Predatory pricing or pricing beneath the competition so as to
cannibalize the market and restrict the competition is an
unethical pricing strategy. And setting up barriers that prevent
smaller companies from entering the market is unethical as
well.
Ethical issues in Marketing
42. Exploitation
avoid using scare tactics and hard selling techniques
Spam
avoid flooding a customer’s voicemail, mailbox, email or any
other means of communication with unsolicited messages or
aggressive messages.
Bad mouthing Competition
focus on the value and benefit of the product and point out its
USP, the consumers are smart enough to choose the better
product.
Avoid the following – Unethical Marketing
43. Misleading Advertisement and Information
any exaggerated claims or dishonest promises will cause the
customers to mistrust the company and even determine the
failure of the brand.
Philanthropic gestures for public relations
giving to charities solely for a tax write off will make the
company appear uncaring and people tend to shy away from
these types of companies and spend money where they feel
the leaders and marketers are especially humane and
gracious.
Avoid the following – Unethical Marketing
