Advertising and Promotions Project

8/9/2019 Advertising and Promotions Project

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Project by:

Joseph -14

Praneet-25

Divya - 26

Huda- 18

Kirti- 71

Poonam-31


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Topics to be coveredo Advertising Rules and Regulations

o Direct marketing


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Advertising Rules and Regulations Rules and Regulations are part of everyones

life

There are 2 opinions with regard to advertising

regulations

Govt Intervention

Self regulations byadvertising professionals


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Areas focused:


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Dir ct t w r Ki


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Medici e, health


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Foodadverti i


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Fi ancial adverti ing


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Environmental friendl


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Deceptive Advertising Affects Perceptual process adversely by

altering reality and affects buying behaviour

Focus of deception has moved to- Likelihood

of misleading

The claims should be restrained keeping in

mind the commercial focus


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Various forms of Deception: Misrepresentation- Amul Macho

Unsubstantiated Claims- Complan

Bait and switch- Garnier

Unidentified Advertising- Asian Sky Shop Telemarketing

Intellectual Property-High Implying a benefit needed Doodh doodh campaign

Implying benefit not delivered.

Endorsement Non existent and partially existent benefit- Lemon drink

Implying unique benefit- Crocin


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Puffery Puffery can be subjective or outright spoof


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Protection against Puffery or false

representation?

Reasonable Consumer Hair Dye

Concept of Materiality

Advertising research to Determine Deception


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Acceptable Level of Misinterpretation

Anything about 5% is acceptable

Ad comprehension till 30% is acceptable

Remedies cease and desist order,compensation of damage, affirmative disclosure

of omitted information and corrective

advertising to rectify past deception


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Direct Marketing MS Geller sketches DMs growth.

Traces with origin to first mail catalogue sent

by Aldus Manutius in Venice in 1948. Success of DM depends on maximum response

at lowest possible cost.

In DM its important to leran the customers-

both demographically, psychographically. DM is basically a part of relationship

marketing.


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Definition ofDirect MarketingAccording to Lester Wunderman the main focus of direct

marketing is and will remain creation of customerswho make repeat purchases rather than on

prospecting for product trials.

o It can only successful when it creates share of marketrather than share of mind.

o DM means right message to right people at the righttime.

o DM message should appeal to rationality and

emotions.o In 21st century its every marketer aims at building

lasting customer relationship by integrating 4Ps andDM helps it to be done at comparatively lower cost.


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Four attributes of DM Focus

Measurability

Personalisation

Immediacy


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From Books to computers.

Access to prospects efficiently

Mainly high involvement product

There has always been initial resistance to DM.

With concept of customer being focus andrelationship being the base gaining importance DM isgrowing slowly and steadily

DM is like an iceberg- marketers need to explore thesame

CreditCards

CosmeticsPackage tours Bankingproducts

Product old through DM

Books &periodicals


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DM in India Mainly used by business to business marketers

Products category includes consumer durable,

industrial goods, insurance, automobiles, IT, Telecom,

Financial services., Jewellery, luxury goods segment,

premium product segment etc.

Below the line marketing in India accounts for Rs.300

cr business.

It mainly focuses on specific consumer group.


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Direct marketing MediaDM Media

Newspaper

Insets

Press

AdvMagazines TV Cable TV Radio InternetDirect Mail

First Second Free Standing

Inserts

Blind In cards

Loose deck

Cards

Classified Regular


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Difference between DRTVcommercial

and BrandAdvertising.Brand Advertising Direct response TV

Advertising

1. Works on PT slots. Chases

High TRP slots

1. Works better in NPT slots.

It is more informative anddemonstrative in nature

2. It can talk about the brand in

most innovative manner

2. Everthing related to brand

has to be spoken in first 5 secs

3. It can be in the range of 10-50 secs ad

3.It is minimum 60 or 90 or120 secs


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Use of database in Direct Marketing

The database has to be correct

Timely revisions are to be made

Segmentation of the list can help. For ex-

high income buyers and low income ones.

Professional agencies also maintain

database and sell them to Companies.


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Important terms in Database marketing List Complier

List broker- link between list owner and

buyer. Broker represents buyer List manager - markets the list. Manager

represents owner.

Salting the list -Giving fake or decoynames.

Exmaple- telecom companies


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Testing Mail order list Mail order research is called testing. The

sample representation and database is

checked with expected response to thetest.

Product testing- Product concept is tested

mainly through questionnaire. Example- Amway products, tupperware

etc.


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Copy forDM It has to follow the AIDA process

It has to be more objective and factual

In case of personalized letters to customers it has tobe addressed as say Dear card member

Copy be it print, internet, TV or radio should use

simple direct words.

IN DM, the writing should be less complex but atthe end the database it reaches to will maximize the

effect of the same.


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Other aspects in DM The enclosures like a small gift, card etc should be

attractive.

In DM the first look is the impression that will motivatethe customer on the offer.

In case of letters envelopes should be attractive andcarry phrases that will make customer open the same.

Even order cards and coupons attached for any offershould have gripping words that will make customer gothrough the same.

Payment details for the offer should also be mentionedproperly

For example Shoppers Stop season sale offer card,Membership cards for clubs etc.


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DM - Catalogues Mainly used in case of industrial marketing

It should be of high quality in terms of production

More pictures for low involvement products

Long copy for high involvement products. It involves high cost of production so it is most of

the time sent once prospective customer isidentified.

It is sent as per seasonal scale quarterly, halfyearly or yearly.


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Telemarketing Outbound and Inbound calls.

It is used for receiving enquires, complaints,

orders and feedback. Database is very important

It should not intrigue the privacy of the

receiver.

Timing should be considered while usingtelemarketing

Example - Citibank, Vodafone etc.


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Post Sales activity Sale is not the only aim of DM

Customer satisfaction and retention is what DM aims

at.

A customer should never feel cheated after taking a

particular decision

Product quality, guarantee, warranty, delivery time,

acknowledgement letter, congratulatory letters, post

sales satisfaction are certain points to be considered.

Best example to demonstrtae is Eureka Forbes.


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DMCostings

Any business operates at break even point before makingprofits.

BEP (in units)= FixedOverheads

per unit contribution.

OR BEP (units)= Fixed overheads

P/V ratio%

P/V ratio= Contribution per unit x 100

Sales per unit

Contribution margin= Sales price (unit)- variable cost (unit) Gross Contribution margin= Total revenue total variable cost

In DM cost of all fixed overheads are in the range of 10-15percent.


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Database Marketing- shortcomings

Intrusion to privacy is one of the major factors

leading to failure of DM

Database loading research is one effective way-sought data from consumers

DM reduces cost as it avoids wrong targeting

unlike mass advertising

Still DM is at an initial growing stages in India. Direct marketing Guild of India is formed to secure

recognition


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Conclusion

DM is useful in communicating-

To small set of audience

When premium goods are sold It helps in reducing cost

Degree of comfort with the customer

Advertising and Promotions Project

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