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Unit 12 Promotion Management: Managing
Non Personal Communication Channels
Structure:
12.1 Introduction
Learning Objectives
12.2 Integrated Marketing Communication
12.3 Communication Development Process
12.3.1 Preparing target customer profile
12.3.2 Identifying promotion objectives
12.3.3 Designing message
12.3.4 Selecting channels of communication
12.3.5 Selecting message source
12.3.6 Target customer feedback
12.4 Budget Allocation Decisions in Marketing Communications
12.5 Introduction to Advertising
12.5.1 Types of Advertisements
12.5.2 Decisions involved in developing advertisement programs
12.5.3 Characteristics of major media
12.6 Fundamentals of Sales Promotion
12.7 Basics of Public Relations (PR) and Publicity
12.8 Summary
12.9 Terminal Questions
12.10 Answers
12.11 Mini-case
12.1 Introduction
A good product with better distribution and affordable price will fail if its
attributes are not properly communicated to target customers. Marketer
should understand how shall company develop and channelize the
communication in an effective way. Communication is defined as "Any act
by which one person gives to or receives from other person any information
about that person's needs, desires, perceptions, knowledge, or affective
states. Communication may be intentional or unintentional, may involve
conventional or unconventional signals, may take linguistic or nonlinguistic
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forms, and may occur through spoken or other modes." The definition
provides the general view of all types of communication. The definition can
be interpreted in marketing as “marketing communication is the process of
providing the information to the consumers about the marketing mix
(essentially the 4 P‟s) either through personal channels (direct selling, direct
marketing etc..) Or through non-personal channels (advertising, sales
promotion etc...)”. Both personal channels and non personal channels
constitutes the Marketing communication mix or promotion mix.
Promotion mix: This is an assortment of advertising, sales promotion, public
relation, Personal selling and direct marketing any organization must have
an ideal promotion mix to promote its products. Therefore, it is a very crucial
task for the marketer to properly list out the promotion mix strategies and its
benefits.
Advertising- Any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor. For example: Print ads,
radio and television ads, billboard, brochures and, signs, in-store displays,
posters, motion pictures and banner ads,
Personal selling- The type of promotion mix that involves sales people who
will help and persuade one or more prospects to purchase a good or service
or to act on any idea through the use of an oral presentation. For Examples:
Sales presentations, sales meetings, sales training and incentive programs
for intermediary salespeople.
Sales promotion- Incentives designed to stimulate the purchase or sale of
a product, usually in the short term and generally adopted in the stores or
point of purchase. For example: Coupons, sweepstakes, contests, product
samples, rebates, tie-ins, and self-liquidating premiums.
Public relations- This is the process of non-paid non-personal stimulation
of demand for a product, service, or business unit by planting significant
news about it or a favorable presentation of it in the media. For example:
Newspaper and magazine articles/reports, TVs and radio presentations,
charitable contributions, speeches, issue advertising, and seminars.
Direct Marketing: The communication tool used to interact with the
customers directly by using telephone, mail, online mediums and other
tools. For example, telemarketing, e-mails, voicemail marketing etc.
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Publicity: this medium of communication may be used with or without the
organization knowing about it. When the company itself is involved in
publicizing a certain message or idea then publicity is organizational
oriented; if any other external party such as media is involved in
communicating any issue about the company then it gets publicity through
others. For example, film producers often use publicity stunts to promote
their films even before it is released.
Learning Objectives
After studying this unit, you will be able to
Explain the importance of integrated marketing communication.
Describe the stages involved in developing effective communication.
Analyze budget allocation decisions in marketing communication.
Understand the fundamentals of advertising and sales promotion.
Discuss the role of public relation (PR) in marketing communication.
12.2 Integrated Marketing Communications (IMC)
According to The American Marketing Association, Integrated Marketing
communication is “a planning process designed to assure that all brand
contacts received by a customer or prospect for a product, service, or
organization are relevant to that person and consistent over time.”
Objective of Integrated Marketing Communication:
To plan, develop, execute and evaluate coordinated communications with
organizations‟ stakeholders.
Reasons for the growth of Integrated Marketing Communication
1. The growth of innovative promotional tools and need to integrate them.
2. Specialized media vehicles for niche target customers.
3. Growth of retailer dominated market and passing of control from
manufacturer to the customer.
4. Growth of database marketing.
5. Wider geographical coverage through internet.
6. Higher accountability and performance linked compensation schemes.
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12.3 Communication Development Process
12.3.1 Preparing target customer profile
Effective marketing communication starts with identifying the target
customer to whom the communication is developed. In this stage company
prepares target customer profile.
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Company: Exide industries.
Copy: Help, whenever wherever your car battery is in trouble we will be
there, just dial the bat mobile number of your city and we will be right there r
to bring your car back to life. Because, we love cars.
Target customer profile:
Customer Characteristics Description
Type of customer Individual
Income Upper middle class and upper class.
Media exposure Print ( English magazines, dailies and journals)
Occupation Salaried or business class.
Need of the product OEM of a car
12.3.2 Identifying promotion objectives
Target customer profile provides inputs about his/her readiness to purchase
the product. Customer may be in any of the six stages of hierarchy of
effects. The six stages are awareness, knowledge, liking, preference,
conviction and purchase. Every company will like to bring their customers to
the purchase stage from other five stages. Therefore it creates different
promotion program at different stage. To make it clearer, Company first
creates awareness about the product, educate them about the advantages,
induce them to choose the brand, stimulates and monitors that customer
purchases the product.
a. Awareness: Marketer creates the new range of products. Awareness
level for these products is very low. Intention of the advertisement is to
create awareness about these new products. In the following example of
Reebok‟s play dry technology garments, it focuses to create awareness
among the target audience. Look at the message copy of print
advertisement.
Copy: Dravid does this simply by sporting his Reebok Play Dry apparel.
These fabrics have been designed with a special moisture ventilation
system that dries away perspiration in action. It works effectively by
pushing moisture away from the skin to the outer layer of the fabric for
evaporation. So if you want to stay cool all summer, just do what the
hottest players do. Walk into the nearest Reebok Store.
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b. Knowledge: In this stage target audience don‟t have complete
knowledge of the product. Marketer explains the product in detail and its
advantages to the target customers. Following advertisement of Parry
Neutraceuticals explains the advantages of beta carotenes.
Company:
Parry Neutraceuticals
Copy: You know these are good for
you, Natural beta carotene and other
carotenoids like it, are the natural
pigments found in orange, yellow, red
and some green fruits and
vegetables. They're some of the
biggest reasons why fruits and
veggies are good for you. They help
prevent the worst things that can
happen to you - cancer, heart
disease, diabetes, arthritis, cataract
and even ageing. The age-related or 'degenerative' diseases begin with
repeated damage to cells, which adds up over time. The biggest cause
of damage to cells is a common process called oxidation. Carotenoids
help prevent oxidation damage because they're some of nature's best
anti-oxidants. But to get enough natural beta carotene and other
carotenoids, you need to eat 5 servings of fruits and 5 servings of
vegetables every day or just one soft gel of Parry's Natural Beta
Carotene. It is a mixture of natural carotenoids that comes from
Dunaliella salina, one of nature's best sources of carotenoids
c Liking: Promotion is used to convert knowledgeable audience into
likeable category. Marketer uses celebrities to create interest in the
product. For example, Reid and Taylor highlight their product quality in
the advertisement by using Amitabh Bachhan a film actor.
d Preference: Creating differentiation in the market place so that customer
identifies it over the rival brands. Big bazaar advertisement with tag line
„is se sasta aur achcha kahin nahi‟ or nobody sells cheaper and better is
alluring the customer by telling them what differentiation they can bring.
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e. Conviction: customer may have preference over the product but he/she
still not able to decide. In this situation, marketer develops the messages
in such a way that it provides platform for him to decide. For example,
Tata indigo, requests its customer to go for test drive and experience the
truth. Customer may be convinced about indigo but not developed the
conviction. Look at the words used in the copy.
Copy: Business class travel, now with power dressing, presenting the
stylish new Tata Indigo. Make a powerful style statement on the roads
with the new Tata Indigo. The fascia is accentuated by dual chamber
headlamps and more pronounced chrome-lined grille, while sill valance
covers, chrome insert door rub rails and dual tone ORVMs add a sporty
touch to the overall elegance of the car. The rear sports a chiseled body-
hugging bumper, new tail lamps and chrome surround registration plate
garnish. The interiors turn beige for the full range, and the new cockpit
topped off by the 3-spoke steering wheel carries forward the classic
modernity of the exteriors. The best-selling sedan just got better. Take a
test drive today. And discover power dressing on Wheels. Spoil yourself.
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f. Purchase: Sometimes customers have strong desire to buy the product
but due to affordability or any other environmental factor, they are not
able to purchase. In this situation, marketer uses promotional schemes
particularly reduced price schemes to attract the customer. Company
also comes out with communication programs for repeat buyers and
loyal customers.
12.3.3 Designing a message
After deciding the communication objectives, Marketer turns to develop right
message which should create attention, interest, desire or action (AIDA) by
the customer. Before deciding what should be there in the message, we will
have to understand AIDA model in detail. The main objective of any
message is to meet the AIDA model although the message framed will be
subject to product type/category, ad budget and creativity skills of
individuals.
I. AIDA model:
Attention: The marketing communication should generate attention
towards the product. In this stage customer is having the need;
organization should provide solution from their communication. For
example, when advertisers use a popular film star or a celebrity to
promote a perfume brand or even a soap or a toothpaste, it will
immediately catch the audience‟s attention.
Interest: Once the customer provides enough attention towards the
communication, organization should stimulate it to create interest.
For example, if celebrities are used to endorse products, audience
must be curious enough to know what they are saying about that
particular product.
Desire: The interest created should be forced in the customer mind
so that he will develop desire towards the product. For example,
when people have seen the ad and show interest, next thing would
be to create a desire for that product. People should have the
willingness to buy the product and unless they don‟t desire it, they
will not be eager to buy the same.
Action: Strong desires should be turned into action. Hence company
should provide the advantages of purchasing of the product in their
communication messages. For example, it is very difficult for the
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Insurance companies to grab the attention of people towards
insurance products, create interest and desire as to make a person
buy the same. So, it‟s a challenge to the marketer to develop such a
message that immediately gets the attention and make a person to
go for it. For example, it is easy to catch people‟s attention towards
ice-creams so that they will have interest and desire to taste it and
eventually buy it.
II. Deciding the message content.
Message content must have any one of the following appeals
Emotional appeal: Positive emotional appeal or negative emotional
appeals are strong tools used to intensify the purchasing activity of
the customer. Positive emotions like love, pride, joy and humor are
used in the message. Following are the advertisement where such
attributes of positive emotions used.
www.makemytrip.com- Joy
BMW fastest saloon car in the
world- pride
Fevicol – humor
Wheel- love.
The negative emotions like fear guilt and shame are also used in the
advertisement to attract the customer.
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ICICI prudential- fear.
NIIT- if you are not studying at
NIIT you are missing something-
guilt
Rexona deodorant – shame.
Rational appeals highlight on the desired benefits about the products.
They highlight quality, economy value or performance of the product.
Dabur Amla – value appeal
( long Hair)
Lakme brilliance- Quality
products.
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Reliance India mobile-
performance( works even in flood
situations)
Reliance Infocom- Like the first
three, the mobile phone must
come to me as a necessity and
not as a luxury- economy
Moral appeal: These are concerned towards public health or
environment or social responsibility. For example, Shell lubricants show
its commitment towards environment in their advertisements.
III. Message format: In this section we will discuss how message should
look and stimulate the interest.
Constituents of message format:
Characteristics Suitable media.
1. Headline Print, Outdoor, Online
2. Copy Print, TV, outdoor, online
3. Illustration Print, TV, Outdoor, online
4. Color Print, TV, outdoor, online
5. Pictures Print, Outdoor, online
6. Message size Print, TV, Outdoor
7. Shape Print, Outdoor, Online
8. Words Print, TV, Product, Outdoor
9. Sounds Radio, TV, Online, Outdoor
10. Voice Radio, TV, Online
11. Body language TV, Online
12. Texture Product, Print, Online
13. Scent Product
14. Distinctive formats Print, Online, Outdoor
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Print advertisement Message format:
Colors used: Saffron, Yellow, Red, Watermark brown, Black, Brown.
Size: 3.5inch breadth* 4.2 inch length
Shape: Rectangle
Words: Straight out of the pack and into your mouth, that's the usual style of
eating Haldiram's Namkeen. But now, there's a whole new way of doing it! A
blend of our delicious namkeen with a dash of imagination, presented in a
list of yummy recipes, just for you. But where do you get these Recipe
Remixes? Just write to us at the address given below and we'll send you a
Recipe Remix booklet, absolutely free! What's more, you can also try these
recipes at most of the Haldiram's outlets. So, get your own booklet and start
whipping up your remixes in your kitchen itself or simply visit us at our
Headline
Sub
Headline
Body copy
Base line
Pictures
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outlets. But wait, there's more! You can even create your own recipes and
send it to us. Who knows your recipe could win you a gift voucher of up to
Rs. 2500/-*. Not only that, your winning recipe could also feature in our next
Haldiram's Recipe Remix booklet. So, get those recipes started and let the
good times begin!
Activity 1:
Take any newspaper and mark those advertisements that you think has a
good message content, right kind of appeals and aspects that can grab
the reader‟s attention.
12.3.4 Selecting the channels of communications
The communicator may use company sales people, reference groups,
blogs, RSS, webinar, online communities and social networking sites to
promote their products. These media are called as personal
communication channels. The word of mouth campaigns, buzz
marketing and viral marketing are some examples of personal
communication channels.
Word of mouth communication: the personal communication between
customers and their reference groups about the product
Buzz marketing: The marketing technique in which organizations create
opinion leaders (people whose opinion are sought by others) and spread the
product information to others.
For example, Gmail - Google did no marketing, they spent no money. They
created scarcity by giving out Gmail accounts only to a handful of "power
users." Other users who aspired to be like these power users "lusted" for a
Gmail account and this manifested itself in their bidding for Gmail invites on
eBay. Demand was created by limited supply; the cachet of having a Gmail
account caused the word of mouth, rather than any marketing activities by
Google.
Viral marketing: The marketing technique of using social networks on the
internet to create the brand image.
Viral marketing is a phenomenon that facilitates and encourages people to
send messages to others voluntarily. Viral promotions may take the form of
video clips, interactive Flash games, images, or even text messages. For
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example, Cadbury's Dairy Milk 2007 Gorilla advert was heavily popularized
on YouTube and Face book.
The communicators are using mass media like print (Newspaper,
magazine, journals) Broadcast (radio, television) Outdoor (hoardings,
Bill board posters) and online (e-mail, communities, groups, websites) to
communicate their product attributes.
12.3.5 Selecting the message source
Messages communicated by the celebrities and proper sources have high
credibility among the target consumers. Many companies use well known
actors and actresses, cricket players, and even cartoon characters to
promote their advertisements. Colgate- Palmolive well known FMCG
company used Indian Dental Association‟s (IDA) recommendation to
promote their toothpaste. As we have seen earlier Rahul Dravid, Amitabh
Bachan and Karishma Kapoor are used as sources for Reebok, Reid and
Tayolr, and Dabur Amla respectively. Companies should be very careful
about the selection of the sources. If the product character does not match
with sources, then product will fail in the market. Recently Pepsi dropped its
sources Rahul Dravid and Sourav Ganguly and selected Rohit Sharma for
the promotion campaigns.
12.3.6 Target Customer Feedback
The communicator collects the feedback on the promotion campaign to
assess how many of target customers are able to see, hear or read the
message. This stage helps communicator to understand how many of target
customers actually able to recall the message? And among them how many
of them really purchased it. Some companies go further and ask the
customer to provide suggestion to improve the promotion campaign.
12.4 Budget Allocation Decisions in Marketing Communications
Media vehicle selection, number of insertions and message structure
depend on the budget allotted for the communication program. A popular
channel may charge more for advertisement but organization gets better
viewership. A newspaper having high circulation charges premium for the
advertisement but all the organization may not have enough budgets to
support such campaign. Hence marketer would like to decide what is the
budget for the communication program? And how shall it be allotted
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optimally? There are four different methods on which a media planner
decides the allocation of advertisement budget.
a) Affordable method: This method is used by small companies who don‟t
have enough communication budgets. In this method company allots the
fixed amount for the communication program. The advantage of this method
is company can have better control over the spending on the
communication. The disadvantage is if sales require higher communication
effort, company is not in a position to allocate the budget.
b) Percentage of sales method. In this method company allots the budget
on the basis of total sales forecasted. This is the simplest method. Marketer
can have better control over the budget and also have flexibility to allocate
the budget.
c) Follow the Competitor method: The Company sets its promotion
budget on the basis of competitors advertising effort. Here company closely
monitors the developments of the competitors‟ communication program and
study the industry trends in communication budget prior to setting up
communication budget.
d) Objective and task method: The procedure involved in estimating the
advertisement budget by this method are First, Objectives are set for the
communication programs. Second, identifying the task to be performed to
achieve the objective and third, estimating the cost of achieving these
objectives.
Self Assessment Questions
1. Expansion of AIDA is _________________________________
2. The three appeals used in the message content are ________,
___________ and _____________.
3. The technique of using the social network on the internet to create the
brand image is called as ------------
4. Percentage of sales method of advertisement budget decision is
determined on the basis of affordability of the company
a. True b. False
5. The promotion objective used when customer may have preference over
the product but he/she still not able to decide is --------------
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12.5 Introduction to Advertising
Please remember we already discussed definition of advertisement in the
promotion mix concepts at the beginning of this unit. In this section we will
discuss different types of advertisement and four important decisions
management takes in developing advertisement program.
12.5.1 Types of advertisements
Institutional advertising: The objectives of advertisements are to
enhance the image of the company rather than selling the product. For
example, Wipro uses „Applying Thought‟ for all its businesses thus
promoting the company.
Product advertising: The objective of this type of advertisement is to
communicate about the product attributes to the target customer.
Product advertising is further classified into three types. They are
1. Pioneer advertising: This mode of advertisements is used to create
awareness and demand in the initial stage of the product life cycle.
For example, TATA Docomo advertised initially as to why a person
should pay for the unused minutes when talks may last for seconds.
2. Competitive advertisements: This type of advertisement is used to
highlight the differentiation of organization‟s product. This method is
usually used in the growth phase of product life cycle. For example,
Detergents like Ariel, Surf and Tide constantly differentiate their
product features from each other.
3. Comparative advertisements: This type of advertisements highlight
on the comparing company‟s communication message with
competitors product information. This method is used when the
competition is very high or sales are sluggish. For example, soft
drinks like Pepsi and Coca-cola at some point were involved in
comparative advertising.
12.5.2 Decisions involved in developing advertisement programs
Determining the advertisement objectives: Marketers should determine
the objectives of advertisements in the initial phase of the program. The
objectives of advertisements are
i. Provide the information about advertisements and create
awareness about the product.
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ii. Highlight the uniqueness of company‟s products over competitors.
iii. Reminding about the product and facilitating the thinking about the
product in order to make a purchase.
Determining the advertisement budget: We discussed four important
techniques used in setting up communication budget in the beginning of
this unit. In this section we will discuss the factors that influence the
advertisement budget decisions.
i. Stage of the product in the product life cycle: In the introduction
stage of product life cycle Company spends more money on
advertising to inform the consumers about the product and to
create awareness.
ii. The market share of the company: If the share of the company is
high, it tries to defend by heavy advertisement and if it is low and
market is attractive organizations promote company‟s product
heavily.
Developing advertisement strategy: Advertisement strategy depends on
two important factors. They are developing messages and choosing
proper media.
i. Message development:
Message should be developed only after preparing the
complete target profile.
Understand what interests target customer.
Message should answer the objectives of the program.
Message should be simple and can be understood by anybody.
Use more interactive communication tools.
ii. Selecting advertising media:
Assess how many target customers should view the
communication message.
Point out how many times a target customer will expose to the
advertisement.
Evaluate the impact of advertisement message on the target
audience.
List out the media habits of the target customers.
Find the suitable media for type of product organization have.
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Prepare cost sheet and choose optimum media.
Choose particular media vehicle (Zee channel, Times now,
Prajavani, Hindu etc…)
Decide how many times advertisement should be given in the
year and also decide the continuity of advertisement.
Allocate the media execution strategy on the basis of prime
time and non prime time or seasonal and non seasonal
decisions.
Evaluating advertisements: Communication department is interested in
identifying whether the message given is effectively reaching the
consumer and inducing them to purchase the product. Therefore they
critically evaluate the advertisements through various methods. Some of
the important methods through which advertisements evaluated are
recognition method (showing the advertisement and asking whether thy
have seen it before), aided recall (asking people to tell the brand they
remember) and unaided recall (asking people if they can remember
seeing any ads within an identified product category).
12.5.3 Characteristics of major media
I. Broad cast media
Radio
1. Provides up to date information
2. Reaches the local audience effectively
3. After FM revolution this is one of the fastest growing media.
Television
1. Expensive medium
2. Products can be well explained and demonstrated.
3. It provides wide geographic coverage
4. Image creation is difficult in this medium because of spontaneity.
5. Wide number of media vehicle creates the problem for media
planners.
II. Print media
Newspapers
1. Continue to dominate local markets
2. Retail and classified advertisement are key
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3. Important advantages include flexibility and community prestige
4. Newspapers offer powerful merchandising services like
promotional and research support
Magazines
1. Divided into two broad categories of consumer magazines and
business magazines
2. These categories are also subdivided into monthly publications
and weekly publications
3. Specialty advertisements can be promoted through this media.
III. Outdoor Advertising
1. Includes billboards, painted bulletins or displays, and electric
boards
2. The oldest and simplest media business
3. Effective in the high traffic areas.
4. Environmentalists oppose this type of advertisement.
IV. Online advertising
1. Contains characteristics of both print and broadcast media
2. Enhances two-way communication and encourages audience
participation
3. Example of this media is e- mail.
V. Other Advertising Media
1. Transit advertisement: advertisements placed on the buses and
moving vehicles.
2. Movie advertising: Inserting the advertisement inside the movie
3. In flight commercials: advertisements placed in the airplanes.
4. Using yellow pages and pamphlets to advertise the product.
Activity 2:
Take any product and observe how it is advertised on different media.
Compare the message advertised and where it is more successful.
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12.6 Fundamentals of Sales Promotion
Sales promotions are short term programs that encourage consumers
purchase or sale of a product or service immediately.
According to the Institute of Sales Promotion,
"Sales Promotion comprises that range of techniques used to attain sales or
marketing objectives in a cost effective manner by adding value to a product
or service either to intermediaries or end users, normally but not exclusively
within a defined time period."
Sales promotions are short term incentives and best suits for generating
instant sales. Organizations that are into the retailing and managing it
independently are using these to the maximum. According to AdEX India a
TAM India subsidiary, sales promotion accounted for 18% of total print
advertisement.
Sales promotion methods according to Indian market:
Sales promotion uses three different types of tools. They are consumer
promotion tools, Trade promotion tools and business promotion tools.
Consumer promotion tools: These promotion tools are directly targeted to
customer. These tools stimulate an interest among target customer to
purchase the products quickly. Some of the consumer promotion tools used
in the Indian market is listed below.
(Source: AdEX- a TAM media company)
1. Price promotion: Organization offers price reduction on the product. For
example, Rs 5 off on the purchase of Revive 200g.
2. Contest promotion: organization requests the customer to purchase the
product to participate in the contest and win the prizes. For example,
Britannia‟s „Britannia khao, world cup jao‟
3. Multiple promotions: Promotions offer includes more than one
promotional offer. For example, Rs 30 off and a multipurpose jar free on
the purchase of 1 liter pack of Halo shampoo.
4. Add on promotion: Promotion offers a free or an add on product (same
or different) on the product. For example, an 8 ml Sunsilk shampoo
sachet is free with 75g Pears.
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5. Exchange promotion: Price of a product is reduced in an exchange of an
old product. For example, bring your old color television and take home
a Philips LCD TV for Rs 15,000.
6. Combination promotion: two or more products are offered together at a
discount price or some incentive is given on a combination pack. For
example, save Rs 10 on the combined purchase of Colgate toothpaste
and tooth brush.
7. Volume promotion: allows additional quantity of product free on its
purchase. For example, get 50g extra on purchase of 100g Tide.
Top 10 companies on usage of sale promotions (2007).
1. Maruti Suzuki limited
2. Reliance communications limited
3. Nokia Corporation.
4. LG electronics India ltd.
5. Pantaloons India limited.
6. HP India limited
7. Tata Sky limited
8. Planning consultant India limited.
9. Samsung India electronics limited.
10. Hero Honda motors limited.
Trade promotion tools: These promotions are targeted to retailers and
wholesalers. The objective of this type of promotion is to get the self
space, motivate to sell the products and promote brands in the local
media. There are various types of Trade promotion tools are used in the
market but we are limiting our discussion to two major types. They are
discounts and allowances.
1. Discounts: manufacturer offers straight reduction in the list price on
every purchase that channel member does in the particular period.
2. Allowances: This is the promotion value provided by the
manufacturer to the channel member to advertise the product in the
local media or display the product in the store.
Business Promotion tools: the promotion tools used to lead
generation, reward customer and motivate salespeople for business
customers. An organization uses conventions and trade shows. For
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example, Machine tool industry organizes Amtex exhibition in different
places of the country. Organization also conducts sales contest to its
sales executives to motivate them to sell more.
12.7 Basics of Public Relations and Publicity
Public relations (PR) involves with the management of internal and
external communication of an organization to create and maintain a positive
image. Public relations involve popularizing successes, downplaying
failures, announcing changes, and many other activities such as investor
relations, communication during crises, participating in societal causes etc.
Methods of PR:
Lobby groups: these are established to influence government policy,
corporate policy, or public opinion. These groups claim to represent a
particular interest.
News conferences and grand openings to attract media and customers.
Using written and audio visual material to reach the publics.
Social responsibilities of the organization have shown through public
service activities.
Preparing interactive website, communities and blogs on the internet.
Even the front office desk or the receptionist counter at the entrance or
the enquiry desk is designed with the main objective of establishing PR.
Advantages of PR:
It helps in building and maintaining relations with local community. For
example, coca cola India‟s initiatives of transforming villages‟ campaign
helped it to get better image among the rural consumers.
It helps in keeping better relations with the investors.
A good image with social groups creates word of mouth advertising.
It helps in reducing the conflicts and misconception about company or its
products.
It helps in publicizing the products.
Role of PR in marketing communications: Public relation messages are
created by the company staff and circulated in the media without any cost. If
the message is powerful, it reaches different media. Whenever the company
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faces the issues, it looks towards the public relations rather than
advertisements. For example, Cadbury‟s chocolate worm controversy or
Cola pesticide issue in which PR becomes more applicable than using other
forms of advertisements. The firms public relations should be blended
smoothly with the other promotion activities within the company have overall
integrated marketing communications effort.
Publicity:
Publicity can be said as a simple act of making a suggestion to the
concerned parties – TV or radio channel, news reporter or journalist, film
makers, etc. that leads to the inclusion of a company/products in an already
existing story or a newly developed one. Publicity may also include any such
information that attracts attention to a company, its products, its people or
any event, usually generated by a third party such as media. Publicity
maybe a part of PR or it may be independent of it in certain situations.
Good Publicity and Bad Publicity:
Publicity may have positive or negative impacts. For example, it became a
negative publicity for Coca-Cola when people in India, started to throw or
break the bottles on the roads because of the belief that it contained
pesticides or toxic substances. News channels covered the same giving
negative publicity to the company and the products.
Ways in which organizations can use publicity as a communication tool are
as follows:
Organizing events, contests, exhibitions, public displays, tours, etc.
Sponsoring awards, scholarships or giving charity for any noble cause.
Issuing reports, conducting survey or polls, taking stand on any
debatable or environmental issues, etc.
Any other way that is appropriate like for example displaying the
products in a movie and asking the lead actors to use the products in
that movie.
Ways in which organizations can avoid or minimize the effects of bad
publicity:
Providing people with the accurate information and giving clarifications if
needed either through press release, media interviews, websites, public
messages, advertising etc.
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Company‟s top management or spokesperson can give a public
statement or comment in the various media.
Improvising Public Relations and designing good publicity message to
erase the effects of bad publicity.
Continuing to provide quality products and services to the consumers.
Involving in community work or environmental protection campaigns or
any such activity for a good cause.
Self Assessment Questions
6. _________ Advertisements are used to create awareness.
7. _________ and _________ are factors that determine the
advertisement budget.
8. Television is a type of
a. Broadcast media.
b. Print media.
c. Out door media.
d. Online media
9. A sales promotion technique in which marketer offers two or more
products together at a discount price or some incentive is given on a
combination pack is called as ______________
10. Lobbying is the method of
a. Sales promotion
b. Public relations
c. Advertising
d. All the above
12.8 Summary
Promotion mix is comprises of a combination of various marketing
communications techniques which includes of Advertising, Sales
Promotion, Public Relation, Publicity, Personal Selling and Direct
Marketing.
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AIDA model discusses creating attention, interest, desire in the
consumers and making them ready for action which is nothing but
buying the product. .
Buzz marketing refers to the marketing technique in which organizations
create opinion leaders (people whose opinion are sought by others) and
spread the product information to others.
Advertisement allocation (ad budget) can be done on the basis of
affordable method, objective and task method, percentage of sales
method, competition method.
Advertisements are classified as institutional advertising and product
advertising.
Media planners have broadcast media, print media, outdoor media,
online media and other types of Medias to allocate the budget.
Trade promotions are provided to channel members where as
Conference and exhibitions are examples of business promotion tools.
Lobbying and press conferences are tools of Public Relations.
List of Key terms
Promotion mix
Advertising
Sales promotion
Public Relations
Publicity
Media
Ad appeals
Message
Ad copy
Target audience or customers
12.9 Terminal Questions
1. What do you mean by promotion mix?
2. Explain the reasons for growth of integrated marketing communications.
3. Explain the communication development process with examples.
4. What do you mean by consumer sale promotion? Explain the consumer
sales promotion techniques used in the Indian market.
5. Write a note on public relations.
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12.10 Answers
Answers to Self Assessment Questions:
1. Attention, Interest, Desire and Action.
2. Emotional, rational and moral
3. Viral marketing
4. False
5. Conviction
6. Pioneer.
7. Product stage in the PLC and market share.
8. Broadcast media.
9. Combination promotions.
10. Public relations.
Answer to Terminal Questions:
1. Refer 12.1
2. Refer 12.2
3. Refer 12.3
4. Refer 12.6
5. Refer 12.7
12.11 Mini-Case
Sales impact of Goodwill
Goodwill Electricals is a manufacturer of home appliances. It is a company
that distributes its products in its own showrooms located in metros and
cities. In March this year, they introduced an electric shaver priced at almost
15% lower than the competitors. This shaver according to the manufacturer
is superior to competitive products in quality and user-friendly.
Goodwill was keen to launch their shaver in the national market.
Accordingly, they gave advertisements in print media (in English
newspapers and magazines). The advertisement is as below:
Headline: You can shave electrically
Body: Picture of shaver with brand name „Smooth‟ and word with across the
picture.
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Closing: Brand name „Smooth‟ written in bold and address of company in
right hand corner.
Till June end Goodwill had spent Rs.25 lakhs in advertisements as against
sales of only Rs.30,000.
Mr. Rajan the proprietor was worried and depressed. On July 3rd, Rajan
decided to abandon the whole project of shavers. However, before doing so,
he contacted Brilliant Ad Agency and made a contract with them to have a
last shot at establishing the product.
After a careful analysis of the situation and market position, by the end of
July, the agency presented the following advertisement:
Headline: Now you can shave in the Luxury of your Bed.
Body: Picture showing a double-bed with a lady sleeping peacefully on one
side of the bed. On the other side, a man is shown holding a cup of tea in
his left hand and shaving his cheek with his right hand. He is shown to be
absolutely relaxed and reclining on the pillows and the whole setting is of a
middle class bed-room
Closing: Below the picture, brand name „Smooth‟ is mentioned and below
this in brackets (*) (August 1st onwards shave in Luxury; contact nos.) (No.
of distributor) Then on right hand corner-Quality symbol of Goodwill.
Within August 5th and after just 6 ad insertions, Goodwill recorded sales on
an all India basis of about Rs. 12 lakhs and pending orders of about Rs. 3
lakhs.
(*) Action date was changed on each advertisement.
(Source: Modified case based on original case study of „Fast Track Electricals-
Cases and Simulations in Marketing Management edited by Prof. M.K. Rampal and
Dr. S.L. Gupta)
One of the new recruits in the Ad agency was very impressed with this move
and compared the appeals of the 2 print ads. If he did this comparison and
found out the right associations, then he would be able to know how the
desired impact on sales was achieved. The new recruit is also interested to
know how other media types could be utilized to promote this product.
Assume you are the new recruit and make the assessment.