Advertising & Sales Promotion,BBA,BMCC

transcript

Advertising & Sales Promotion.

BBA: S6Specialization: Marketing.

Advertising: Introduction.

• Product or a service once produced needs mass contact with “Target Market”.

• One of the best ways to reach target market is through “Advertising”.

• Advertising is a forceful communication.

• Advertising promotes the sale of a product, services, ideas etc.

• But advertising by itself cannot sell a product.

• A dying product cannot be rejuvenated by an advertising program.

• Advertising is a public announcement of product, service or an idea to which public has an access.

• Advertisement is usually one-sided, in one direction.

• It is from an advertiser to the public.

Advertising: Introduction.• The American Marketing Association

defines advertising as “any paid form of non-personal presentation of ideas, goods, and services by an identified sponsor”

Advertising: Introduction.• Analysis of the definition is as

follows;• Any form: Advertising can be in any

form, sign, symbol, illustration, mail, pamphlet, billboard etc.

• Non-personal: There is no personal selling involved in advertising.

History of Advertising.1. 1st multinational agency in India was J.

Walter Thompson.2. Lintas, (Lever International Advertising

Services) ad company formed by Hindustan Unilever, largest FMCG company.

3. ABC, Audit Bureau of Circulation was founded in 1948. It gives credibility to claims newspapers & magazines circulation.

History of Advertising.4) In 1955, the Directorate of

Advertising & Visual Publicity ( DAVP) was started by the Govt. of India, to act as an advertising agency for the govt.

5) Indian Broadcasting Co. formed in 1927 became All India Radio in 1936.

History of Advertising.6) Commercial advertising started on

Vividh Bharati in Oct 1957.7) FM broadcast was started in Chennai

in 1977, and in Mumbai in 1993.8) Doordarshan was started in 1976.9) Color tv came to India, in 1984.10) Multi-channels started in 1990.11) Now ads are on the internet.

Participants in Advertising.1. The Advertiser: Advertiser could

be a manufacturer, a retailer, a distributor or also a PSU.

2. The Advertising Agency: These agencies accept brief from their client and design an ad campaign. Apart from this agencies also render services in film production, product launches, branding etc.

Participants in Advertising.• 3) Media Owners: These are publishing

houses who bring out newspapers, magazines etc. Broadcast media includes radio, tv, films etc.

• 4) PR Consultants: They are found in PR dept of an agency.

• 5) Ancillary Services: Services like studios, gift articles, photography, printing fall under this category.

• 6) Freelancers: These are copywriters, jingle singers, announcers, artists, visualizers, technical writers etc.

Importance & Objectives of Advertising.

1. Effective communication between a manufacturer and its customers.

2. To create product/service awareness.3. To generate customer enquiries for a

product.4. Support a salesperson/personal selling.5. To announce sales promotion scheme.6. To inform customers.

Top Global Categories (Ad Spends)

1) Automobiles.2) Beer, wine ,liquor.3) Cell phones.4) Cigarettes.5) Computer, software,

peripherals.6) Drugs and medicines.7) Electronics.

Top Global categories (Ad Spends)

8) Entertainment.9) Fast-food.10) Food.11) Personal care.12) Retail.13) Soft drinks14) Toys.

Top Advertising Agencies In India.

• As per the survey undertaken by The Economic Times;

1. Ogilvy2. JWT3. Lowe4. Mudra5. McCann Erikson6. Rediffusion7. Leo Burnett

8) Contract.9) RK Swamy.10) Draftcbulka11)Grey world wide.12)Bates 14113)Saatchi14) Percept.

15) Ambience Publicis.16) Euro rscg17) M & C Satchi.18) Everest.19) Law & Kenneth.20)TBWA India.21) Interface22) Publicis India.23) Orchard.24) Triton

Advertising Agency,Set-Up.

• Various departments in an Ad agency,

• Client Servicing: This is the most crucial department. People working in this department are Account Manager, Account Supervisor, Sr. Account Executive, Account Executive and Trainee Account Executive.

• The Account Executive is most important link between the agency and the client.

• They must posses knowledge of all other departments as they have to understand client’s needs, problems.

2) Copy Department: The main job of copy department is to prepare copy for the advertisement.

Copy department works in close association art/creative department.

Head of the copy department is “Copy Director”.

3) Art Department: Head of this department is “Art Director”.

Main function of this department is to create visuals and make final artworks for the advertisement on the basis of copy written by the copy department.

4) Media Department: This departments consists of the Media Director, Media Chief, Media Assistants etc.

This department has all the information regarding various media vehicles, rates, circulation, readership, viewership etc.

5) Production Department: This department is headed by Production Manager.

This department maintains contact with printers, paper merchants, and other suppliers.

This helps in proper job execution.

Advertising Agency,Set-Up

6) Accounts Department: Accounts manager is the head of this department. This department keeps control on the expenses, revenues, makes bills and making payments to various suppliers.

Advertising Agency,Set-Up

7) Research Department: This department does research and fact finding. “Research Director” is the head of the department.

This department helps in making presentations to their clients, based on the research feedback.

Advertising Program.• 5 M’s of advertising, For Mktg. Mgr.1. Mission: What are our advertising

objectives?2. Money: How much can we spend?3. Message: What message should we

send?4. Media: What media should we use?5. Measurement: How should we evaluate

results?

Advertising & Marketing Mix.

• Advertising can be wasteful if it is not properly planned and executed.

• Poor understanding of products, markets, poor positioning, poor segmentation, poor copy and poor appeals can result in advertising waste.

Advertising & Marketing Mix.

• As defined by Philip Kotler,

• “Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market”.

Marketing Mix.•Product: It means, product

variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns.

•Price: It means list price, discounts, allowances, credit terms.

Marketing Mix.•Promotion: It means sales

promotion, advertising, sales force, public relations and direct marketing.

•Place: It means channels, coverage, assortments, locations, inventory and transportation.

Marketing Mix for Service Products.

• People.

• Process.

• Physical Evidence.

Branding & Advertising.• A brand needs advertising to stay healthy.• Advertising is needed to defend a brand

from competitive attacks.• To defend a brand, one needs to

“reaffirm” the brand’s core values.• Advertising program should be such that it

“resonates” with consumers.• Consumers must admit, Yes that’s what

the brand stands for”.

Branding & Advertising.• Advertising budget is like an

insurance cover for the brand.• Advertising starts after a brand is left

with no publicity potential.• As publicity dies out, all brands will

have to shift to heavy advertising to defend themselves.

• All strong brands were born in publicity.

Marketing Mix: Services• People:• To deliver/offer satisfactory services

employees have to play an important role.

• Employees must have:1. Ability to understand customer needs.2. Product knowledge.3. Skills to handle customers.4. Good communication skills.

Marketing Mix: Services• People:• Challenges for Employer:1. Recruit right kind of people.2. Train them regularly.3. Ensure team work.4. Define roles and responsibilities.5. Ensure lower attrition.6. Employee satisfaction.

Marketing Mix: Services• Physical Evidence:• Physical evidence of service is

manifested through, Exteriors, Interiors and other tangibles.

Marketing Mix: Services• Physical Evidence:• Exteriors:• Design.• Signages.• Layout.• Landscaping.• Logo units.• Frontage.• Facilities.

Marketing Mix: Services• Physical Evidence:• Interiors:• Furniture.• Color combination.• Lighting/Illumination.• Displays.• Air quality.• Cleanliness.• Ambience.

Marketing Mix: Services• Physical Evidence:• Other Tangibles:• Dress code.• Product information.• Stationery.• Billing statements.• Business cards.

Market Segmentation.• Consumers vary in their choices and

buying behavior. • Companies therefore cannot appeal

the entire market with a single product.

• The process of dividing the market in sub-segments of similar customers is known as “Market Segmentation”.

Market Segmentation.• A market segment consists of a

group of customers who share similar set of needs and wants.

• Many companies are turning to “Micromarketing” at one of four levels: Segments, Niches, Local areas, and individuals.

Market Segmentation.• Niche Marketing: Niche is a more

narrowly defined customer group seeking a distinctive mix of benefits.

• Some of the niche products are Ezee, from Godrej is a fabric washing product for woolen clothes, Crack ointment from Paras.

• Babool toothpaste, Meswak, Neem toothpastes are examples of niche products.

Market Segmentation.• Local Marketing: This is a strategy

where marketing programs are designed to suit the needs and wants of local customers.

• E.g. NRI branches of banks in states like Kerala, Spiderman 3 (English movie) released in 5 different languages, including Bhojpuri.

Market Segmentation.• Individual Marketing: This is the

ultimate level of segmentation. • Also referred as “Customerization”• A company is customerized when it is able

to respond to individual customers by customizing products, services and messages on a one-to-one basis.

• E.g. Ruff’n’Tuff ready to stitch jeans from Arvind Mills.

Consumer Markets.• Segmentation Bases:• Geographic Segmentation: In this

approach market is divided into different geographical units such as, countries, states, regions, cities etc.

• Markets are also segmented into rural and urban markets.

Consumer Markets.• Demographic Segmentation: In

this type of approach market is divided on the basis of variables like age, family size, gender, income, occupation, education, religion, nationality etc.

Consumer Markets.• Psychographic Segmentation: In this

type of segmentation customers are divided on the basis of psychological/personality traits, lifestyle, values etc.

• E.g. Mc Donald’s menu varies as per lifestyles and food habits.

• Titan also has Raga, Nebula, Fast track, Regalia, Edge for different lifestyles of customers.

Consumer Markets.• Behavioral Segmentation:

Customers are divided on the basis of their knowledge, attitude, use to a product. Behavioral variables are,

• Occasions.• Benefits.• User status.• User rate/consumption.

Marketing Communications.• Marketing Communications are

the means by which firms attempt to inform, persuade and remind consumers –directly or indirectly- about the products and brands they sell.

• Done right, marketing communications can have a huge payoff.

Marketing Communications.• Marketing communications allow

companies to link their brands to other people, places, events, brands, experiences, feelings and things.

• Marketing communications also help consumers by telling them how, why where and when a product is used.

Marketing Communications Mix.

• Marketing Communication Mix:1. Advertising.2. Sales Promotion.3. Events & Experiences.4. Publicity & Public relations.5. Direct Marketing.6. Interactive Marketing.7. Personal Selling.

• Advertising: It is any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor.

• Sales Promotion: It is a basket of short-term incentives to encourage trial or purchase of a product or service.

• Events & Experiences: These are company sponsored activities and programs designed to create daily or special brand-related interactions.

• Public relations and publicity: It’s a third party voice or programs designed to promote or defend a company’s image or products.

• Direct Marketing: In this effort mail, fax, e-mail, internet is used to communicate directly with or solicit response or dialogue from specific customers and prospects.

• Interactive marketing: These are on line activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or improve sales of products and services.

•Personal Selling: It is one-to-one selling or interaction with prospects for the purpose of making presentations, answering questions and procuring orders.

The Advertising Process.• Source.• Message.• Channel.• Receiver.• Destination.

The Advertising Process.• Source: The source of a message in

the process is the point of which the message originates.

• Source is generally is marketing manager of an organization.

The Advertising Process.• Message: It is advertising copy,

publicity material, sales promotional displays or sales presentation.

• Message can be executed in a great variety of ways. E.g. by use of humor, fear etc..

The Advertising Process.• Channel: The message is

transmitted through some “channel” from the “source” or advertiser to the receiver.

• Channel consists of one or more kinds of media such as radio, television, newspapers, magazines, billboards, POP displays.

The Advertising Process.• Receiver: Receiver in an advertising

process is “Target audience”.• Receiver can be described in terms

of audience segmentation variables, lifestyles, demographics, benefits sought etc.

The Advertising Process.• Destination: The process does not

stop at the receiver but allows for the possibility that the initial receiver might engage in word-of-mouth communication to the ultimate destination of message.

Internet Advertising.• Important Features of Internet

Advertising:1. World Wide Web: (WWW)It is a system to retrieve documents

and search for information. It combines sound, graphic images, videos and hypertext on a single page.

Internet Advertising.• E-Mail: Users can send e-mail

anywhere in the world to other internet users.

• Usenet: These are discussion groups, newsgroup and electronic bulletin boards. This is very similar to online banking, shopping etc.

• Telenet: These are online databases, libraries, catalogues, journals etc.

Internet Advertising.• Important Features of Internet

Advertising:1. Reaching the Target Audience:

Advertiser can target individuals with considerable precision.

This is very cost effective and delivery is precise.

Internet ads are interactive. Customers know more about the product and can make online purchases.

Internet Advertising.• 2) Advertising Evaluation: This is

a very complex game. To develop effective ad banners on the net is challenging for professionals too.

• Advertisers can learn which ads can be more successful and generate response.

Internet Advertising.• 3) Frequency and Banner burn-

out: It is observed that after the 4th impression the ad banners have little impact and the response rate goes down.

• The advertiser should control and rotate ad banners in a series.

• If not done it will result in wastage of money.

Internet Advertising.• 4) Right Place: Media planners

have the advantage of scanning numerous web pages carefully before planning the ad banner.

• Reduced internet rates is also a contributory factor encouraging internet usage in middle class families.

Commonly Used Internet Terminology.

• Browser: This refers to a graphic interface that provides simple access to documents on the world wide web.

• E.g. internet explorer, netscape, neoplant etc.

• Surfing: This refers to roaming and searching for information www.

• Homepage: This is the very first page of a website that opens when one connects to www.

• Websites: The entire set of pages that constitutes the information compiled by a certain company or an individual on the web.

• Uniform Resource Locator: It is the address that a surfer types in the address bar of the browser to specify the site one wants to visit.

• Link: On the websites links are shown in different colors or shades from the text. When one selects a link the browser clears the window and retrieves the “link document”.

• HTML: Hypertext Markup Language. It is used to create websites with graphics, texts and links.

Types of Internet Advertising.

1. Ad Banner: It is the most basic type of advertising on the net. It is like a billboard on the net.

It appears across the top or bottom of the web page.

The size of the banner is about four & half inch by one and half inch.

2. Website: It is a location on the net rather than an advertisement. It is used to promote company’s products or services.

Many companies use Web as an online catalog store, conducting business on the internet.

3. Ad Button: It is a smaller version of a banner that looks like an icon.

It usually serves to provide link to advertiser’s home page.

Software technologies like java, enliven and shockwave have greatly increased the effectiveness of banners and ad buttons with full motion and animation.

4. Sponsorship: Since internet is becoming fast popular, companies sponsor total sections of publishers web page for a contracted period of time.

Companies get considerable recognition on the web page.

5. Interstitial: It is also referred as “ Intermercial”.

This is an animated ad that pops up on the screen while downloading.

This type of ad is twice as effective as ad banners at generating higher levels of brand awareness.

6. Classified Advertisement: This type of an advertising on the net offers an excellent opportunity for local advertisers.

It is fast becoming popular.This advertisement is quite similar to

ones that are seen in the newspaper.

Limitations of Internet Advertising.

1. Judging the effectiveness is difficult. There are no standard methods of both ad exposure measurement.

2. Due to precise customer targeting cost/price may be higher.

3. Slowness and connectivity discourages users. Unless infrastructure improves the costs would remain on the higher side.

4. The cost’s of PC’s are still on the higher side in India. This discourages large number of people to buy pc’s.

5. Security and privacy concerns are major for online purchasers. Internet is still not fully safe for financial transactions.

6. Many countries have outdated telephone lines and high costs of local telephone services.

Infrastructure also is inadequate.

Advertising Effectiveness.• For planning advertising programs,

researchers provide the following data;

• Consumers needs and wants.• Product qualities.• Market, where are they bought.• Competitors.

Advertising Effectiveness.• It is a common belief that advertising

effectiveness cannot be measured, as advertising is an “art”.

• Other view is that advertising is only a part of marketing mix.

• It cannot sell the product alone.

Advertising Research.• What to test?• Which variable is to be counted or tested

for effectiveness?• Advertisement as a whole cannot be

tested.• It has to be broken down in 3 parts;• Message.• Media.• Scheduling.

Advertising Research.• Other factors which can be tested

are;• Headline.• Typography.• Illustration.• Body copy/text.• Layout.• Media alternatives.

Advertising Research.• Broad classes of media, their sub-

classes, specific media, size of space, (full page, half page), and time.

• Advertising budget.• Advertising timing.

Advertising Research.• When to test?• Advertising testing before it is run

may provide indications of what will happen during and after its running.

• This is called as “Pre-testing”.• Testing after the advertising has run

is called as “Post-testing”.

Advertising Research.• Advertising Evaluation:• It is related to advertising objectives.• It consists of several measures to

ensure performance of advertisement.

• It is based on human responses.

DAGMAR Approach.• Russell H Colley developed a model

for setting advertising objectives, and measuring the results of an advertising campaign.

• According to this model, communication effects are logical basis for setting ad objectives and goals against which results should be measured.

DAGMAR Approach.• Defining, Advertising, Goals, for

Measured, Advertising, Results. • Some of the advertising goals are;• To persuade prospect to visit the shop.• To announce sales promotion scheme.• To provide information about the product.• Brand identity establishment.

DAGMAR Approach.• Colley proposed that communications

objectives be based on a hierarchical model with 4 stages.

• Awareness: This involves making target audience aware of the existence of brand or company.

• Comprehension: Its purpose is to develop an understanding among audience of what the product is and what it would do for them.

DAGMAR Approach.• Conviction: The objective is to

create a mental disposition among target audience members to buy the product.

• Action: To motivate target audience to purchase the product or service.

Copywriting.• It is a very critical activity for

advertising success.• A person who writes a “copy” is a

“copywriter”.• A copywriter converts selling

points/features in customer benefits.• He has to write to achieve client’s

objectives and not his own objectives.

Copywriting.•What is a “Copy”?• Copy includes all elements of an

advertising message.• Print media ads. Include heading,

sub-heads, pictures, captions, slogans and body copy.

Copywriting.• Copy also includes trade marks,

company logo, visual symbols etc.

• In radio commercials it includes sound effects and music in addition to words spoken in ad messages.

Copywriting.• While there are no rules for what makes

a good copy, copy is usually more effective if it is simple.

• Good ads are specific and use facts and figures, instead of generalities.

• Good ad will mention “brand name” and key consumer benefits.

Copywriting.• Copy should be simple,

uncluttered, and straightforward.• The message should be always

true to the product.• Copy should never make “tall

claims”.

Copywriting.• Elements of Copy: • Headline Idea: It is the most crucial

copy element. Its job is to attract the prospect.

• It has to be perfectly worded and should create excitement.

• Headline can be in many forms, questions, news flashes, statements from celebrities, warnings, appeals..

Copywriting.• Sub-Heads: It should further carry

the idea of theme and should help readers to have more knowledge of products and services.

• Body-Copy: It stimulates liking and preference for a product.

• It systematically develops the benefits and promise offered by the product.

Copywriting.• Body-Copy: It logically and

rationally explains products attributes, features and values etc.

• Both emotional and rational reasons are put forward to persuade consumers.

• Closing Idea: It is like closing the sale in personal selling.

Copywriting.• Visualization & Layout: • It is concerned with creation of an

idea which will appeal to consumers or target audience.

• Layout deals with the arrangement of various elements in advertising such as headlines, illustrations, company’s name, trademark etc.

Print Copy Principles.• Headlines should appeal the readers

self interest.• Headline and visual should

compliment each other so well and “tell the story” so easily that a reader should get the message even he skips the body copy.

Print Copy Principles.• Essentials of a Good Headline:• Should be original.• Should be concise.• Should be crisp.• Should be provocative.• Should make the prospect read the

further advertisement.

Print Copy Principles.• Different types of “Copy”:• Scientific copy.• Descriptive copy.• Narrative copy.• Colloquial copy.• Humorous copy.• Topical copy.• Endorsement copy.• Prestige copy.

Print Copy Principles.• Slogans: “Slogan” is a catchy

sentence or phrase which is/should be easy to remember.

• It gives an identity to the product or a company.

• Slogans are short, summarized headlines.

Print Copy Principles.• Features of a Good Slogan:• It should be simple and straight

forward.• Should be pleasant.• Should carry a good sales idea.• Good slogans should enter

consumers mind.

Print Copy Principles.• Body copy should be detailed and

specific.• It should support the headline.• It should be readable.• It should be interesting.• Body can be made readable by using

sub-heads and captions.

Print Copy Principles.• Attribute information is recalled

better when it is presented both as a picture and in words.

• E.g. a teddy bear can be used to depict fabric softener in an advt.

• Ice can shown in the advt of prickly heat powder.

Television Copy Principles.• T.V. scripts should be written to take

advantage of the visual nature of the medium.

• T.V. ads get higher recall scores if they contain more frequent visual representations of the brand name, package and the key products attributes.

Television Copy Principles.• If the shots in the ad are more

“connected” and “better-linked” with each other the T.V. ad is then more effective.

• It has been found that if the camera angle is such that the product or person appears bigger, stronger or bolder the ad is evaluated more favorably.

Radio Copy Principles.• For radio ads, key principle is to

write copy that “creates a picture in the mind’s eye”.

• It should effectively use the effect of human voice, sound effects, humor and music.

Radio Copy Principles.• Short words and short sentences

are usually easier to understand on the radio.

• In radio too, it is crucial to mention brand name and key selling benefits early and often.

Outdoor Copy Principles.• In outdoor ads, message must be

communicated in few seconds.• Copy and visual must be extremely

short, simple, strong and obvious.• Outdoor ads can be recalled more if

words are fewer and more about the product.

• It should be on right hand side of the highways.

B2B Advertisements.• In this ads, the target audience is

seeking for solutions, or profit improving information.

• B2B ads are informative and specific.

• They offer case histories of advertised brands and their success.

Illustrating.• The activity of “illustrating”, is crucial

for many consumer non-durable products.

• It uses pictures or photographs to convey the central idea.

• Copy points are less.• Artwork is more important than copy

writing.

Illustrating.• Illustrating also involves decisions

regarding the identification marks to be used.

• These are company or trade name, brand name and trademarks.

• In some cases the company will not be even mentioned.

Layout.• Layout activity involves bringing all

the pieces together before the ad is sent out for production.

• Layout involves decisions as to how the various components of headline, illustration, copy, and identification marks are to be arranged and positioned on the page.

Layout.• Considerations for Print Layout:• Balance: The arrangement of

elements to achieve a pleasing distribution or visual impact.

• Contrast: Using different sizes, shapes, densities, and colors to enhance attention value and readability.

Layout.• Proportions: The relation of objects

to the background in which they appear and to each other.

• Gaze-motion: The headline, illustration, copy, and identification marks in that order will usually provide the most logical sequence for gaze motion.

Layout.• Unity: The qualities of balance,

contrast, proportion and gaze motion should be combined to develop unity of thought, appearance and design in the layout.

Media & Media Planning.• A medium is a vehicle for carying the

sales message of an advertiser to the prospects.

• In advertising terms, medium is a channel of communication, such as, newspapers, magazines, radio, TV etc.

Media & Media Planning.• Above the Line Media: Press, TV,

outdoor, posters, cinema, radio. Agencies get commission from these media.

• Below the Line Media: In this the ad agencies do not get commission from media. E.g. direct mail.

Media & Media Planning.• Various categories of Media: • 1)Print Media:• Newspapers: Daily, Weekly, Sunday,

weekend supplements.• Magazines: Consumer interests,

business publications.• Direct Advertisement: Direct mailers.

Media & Media Planning.• 2) Broadcast Media: Options available

are as follows;• Radio: Vividha Bharati, FM channels.• TV: DD, Satellite channels.• Narrow Cast Media: Video and cable TV,

Cinema, ad films.• Outdoor media.• Other Media: Specialty media like T shirts,

caps, stickers etc.• Direct Mktg.• Internet.

Media Selection.• Media Selection: Effective

advertising is all about informing the public about the right product at the right time through the right medium.

• If this is not achieved it simply results into waste of money and resources.

Media Decisions.• Decisions concerned are as follows;1. What are the available media which

will serve our advertising needs the best?

2. What could be the best combination of media mix for our total advertising?

Media Decisions.3) What could be the best specific

schedule for the release of our ads in each of these media?

• For the right media planning and selection, the advertiser must know the consumer profile accurately.

• He should know the target market too.

Media Decisions.• For each target, there is an effective

message which should reach effectively.

• Only then the advertising program of a company will be successful.

• This job becomes tough in present competitive scenario, as the choice is in abundance.

Media Planning.• Media planning has become

tactical, consumer and brand strategy led and accurate.

• Today client wants to know whether his/her target audience has actually seen the campaign.

Media Planning.•He wants to know whether

the client was at home when the commercial was aired/released.

Media Planning.• Steps in Media Planning:1. Collection of useful information

about people, market etc.e.g., information on geography,

age group, sex, income, attitudes, interests etc.

Media Planning.• That medium has to be selected

which is most suited to the target market at a given budget cost.

• Question to be asked is, What can you afford?

• This is irrespective of the company size.

Media Planning.2) To decide upon the nature of the

message to be conveyed to the target market.

Understanding customer profile is also very important.

3) Search for an ideal match of the media and target market profile.

Media Planning.4) “Reach” is expressed in terms

of number of households or individuals reached by given medium over a period of time.

This is expressed in terms of per cent of total households or individuals in a target market.

Media Planning.• Sometimes the target audience

may be reached by two media.•“Frequency” refers to the

average number of times different households or individuals are reached by a medium in a given period of time.

Media Planning.• The greater the frequency, the

greater the probability of the advertisement message making a deep and lasting impact.

• “Continuity” refers to message deliveries over a period of time or a season. Ads inserted at time frequency round the year is “ Continuity”.

Media Planning Process.1. When: Timing of release.2. Which: Media selection.3. How: Co-ordination in media

planning.4. How much: Budget, money

allocation.

Media Cost.• What and how much of an audience

wiil the company get, for every rupee spend?

• Media Ability: It covers qualitative values such as audience characteristics, and contribution to advertising effectiveness.

Media Cost.• Media Ability: • Distribution measurement: It is

expressed in the number of copies circulated.

• Audience Measurement: It is expressed in terms of audience size, audience composition and amount of audience exposure.

Media Cost.• Exposure measurement: Once

media creates desired exposure, quality of message will determine the subsequent impact in terms of perception, communication and behavioral response.

Media Cost.• Media Strategy: • It defines and provides rationale for the

recommended media.• The 4 elements of media strategy are;• Media mix.• Usage of media.• Geographic allocation.• Scheduling strategy.

Media Mix.• Media Selection: What type of

media should be used?• Magazines, newspapers, TV, radio,

outdoor?• If magazines, what types?• General, women’s, business, fashion

etc.• If general, which specific?• India Today, Outlook, Frontline etc.

Media Mix.• Geographic Allocation:• National Plan.• Zonal Plan.• Regional Plan.• Area Plan.• Local Plan.

Media Scheduling.• Some of the options are as follows;• Steady Pulse: One ad per week, for

52 weeks or one ad per month for 12 months.

• Seasonal Pulse: Products like Vicks, cold creams, Talcs etc follow this approach.

Media Scheduling.• Periodic Pulse: Scheduling has a

regular pattern.• Erratic Pulse: In this, ads are

placed/spaced erratically.• Start up Pulse: This is adopted for

new product launch. It is a concentrated scheduling.

• Promotional Pulse: This is used for sales/product promotion.

TV Media Planning.• Following points are crucial for

planning;• TRP’s (TV rating points)• Viewership.• Telecast Time.• Media cost.

TV Media Planning.• TRP: This is conducted in major

cities of India.• Data is collected on a weekly basis.• Panel consists of members. Each

panel member records viewership of different programs.

• The data is then analysed.

TV Media Planning.• Panel has 2 groups.• Primary audience of adults from TV

owning households and secondary audience of adults from non tv owning households, who watch tv once a week.

• One TRP is 1% of TV audience.

TV Media Planning.• Media Costing:• Cost of sponsoring a Hindi feature

film on a Sat is now Rs 160,000 – Rs 250,000 for 10 secs, depending on the film.

• Satellite Transmission Scene: In the US, 500 channels are available, in India more than 200 channels are available.

Newspapers.• Only 8.5% of rural readers go through

English newspapers.• Times of India, is the leader, followed by

The Hindu.• Times of India is urban based, while Hindu

is rural based.• 24% of students read TOI, 23% of students

read Hindu.• Hindustan Times is no.3, Indian Express is

no. 4.

Newspapers.•Hindi Newspapers:•Dainik Jagaran.•Dainik Bhaskar.•Punjab Kesari.

Magazines.• Choice available in magazines is,• General Magazines:• India Today is no.1.• The Week is no.2.• Outlook is no.3.• Frontline is no. 4.

Magazines.• Business Magazines:• Business India is the leader.• Business Today is at no. 2 spot.• Intelligent Investor has highest

readership among officers and executives.

Magazines.• Film Magazines:• Stardust.• Filmfare.• Star & Style.• Cine Blitz.• Glamour Magazines:• Debonair.• Fantasy.• Gentleman.

Magazines.• Women’s Magazines:• Femina.• Women’s Era.• Savvy.• General Interest Magazines:• Reader’s Digest.• Competition Success.• General Knowledge Today.

Sales Promotion.

An Important Strategic Tool.

Sales Promotion.• Definition: Sale promotions are short-

term incentives to encourage purchase or sale of a product or a service….Roger A Strang.

• Sales promotions consists of diverse collection of incentive tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/services by consumers or the trade…. Philip Kotler.

Sales Promotion.• “In a specific sense, sales promotion

includes those activities that supplement both personal selling and advertising and coordinate them and help to make them effective such as displays, shows, demonstrations, and other non-recurrent selling efforts not in the ordinary routine”…American Marketing Association.

Sales Promotion & Advertising.

• Advertising is mostly an indirect approach of convincing customers to try or buy a product.

• Sales promotion is a direct and open inducement to consumers to immediately buy the product.

• Advertising objectives are long term, Sales promotion objectives are current or immediate.

Sales Promotion.• Why?• To overcome competitive situation.• To move excessive inventory.• To overcome seasonal slumps.• To get back lost buyers.• To attract new buyers.• To create space for new products.• To support advertising efforts.• To supplement personal selling.

Sales Promotion.• Why?• Customers have become more price

sensitive.• Standardization of Products.• Advertising has become more

expensive.• Emphasis is on sales volumes and

market share.

Consumer Sales Promotion.• Sales promotions directed at the

end-user whether by the manufacturer or by the retailer are called “Consumer sales promotions”

• Consumer promotions can be for non-durable or durable products as well as services.

Consumer Sales Promotion.• Consumer sales promotion can be

effective if they are smartly combined with advertising and point-of-purchase displays.

• Consumer sales promotions are generally “ Pull promotions”.

Consumer Sales Promotion.• Commonly used Tools and

techniques:• Free samples.• Demonstrations.• Contests.• Coupons.• Price-offs/discounts.

Consumer Sales Promotion.• Trade Fairs and Exhibitions.• Refunds.• Exchange offers.• Low interest financing.• Free trials/test rides.• Free service/check up camps.• Sweepstakes.

Trade Sales Promotion.• Trade sales promotions are directed

at “Resellers”.• Resellers includes dealers,

distributors, wholesalers, retailers.• Trade sales promotion are a part of

“ Push strategy”.

Trade Sales Promotion.• Commonly used tools and

techniques:• Factory Direct Incentive. (Slab-wise)• Sharing in advertising expenditure.• Display, POP allowances and

contests.• Sharing in manpower costs.• Sharing/Bearing of rent.

Sales Force Sales Promotion.

• Sales promotion activities directed at Sales team is also an important activity.

• The aim is to motivate sales team sales team for better sales performance and build their morale and confidence.

Sales Force Sales Promotion.

• Commonly used Tools and techniques:• Sales contests.• Incentive schemes.• Awards and prizes.• Gifts.• Promotions.• Special training programs.• Recognition by the MD/CEO/CMO.

Sales Promotion Evaluation.

• If objectives which are not related to sales, measurement of effectiveness is more difficult.

• It is quite easy to measure “before” and “after” results of sales promotion program.

• Pre-Testing: How and what is to be communicated can be pre tested.

• A pre-test can find out what is the perceived value likely to be and risk factor.

• For e.g. Is customer willing to buy an unknown shoe at 45% discount?

• Is this offer worth the risk of buying an unfamiliar brand?

• Response of resellers is also of great importance, before implementing the program.

• Wholesalers, distributors and retailers can be visited to discuss the program and seek their opinion and suggestions.

• Concurrent Testing: This testing is done when the sales promotion is in progress.

• In this testing sales data can be obtained or monitored on a daily or a weekly basis.

• If it is only a consumer contest, response can be judged on the basis of number of entries.

• Post-Testing: This is done after the promotion gets over.

• To measure the sales effect, sales figures before and after the promotion can be compared.

• If the sales exceed the sales promotion, targets and objectives of the program is achieved.

Publicity or Public Relations.

Powerful, Sustainable Tool.

• Publicity is a “management function that helps achieve organizational objectives and facilitate the change in the organization”

• Publicity aims at starting a “ point-of-view”.

• A movement it aims at changing a negative environment.

• Practical public relations is a professional attempt to achieve good public relations and opinion to promote company, product, brand or company’s success.

•Lack of communication results into, misunderstanding, therefore,

•Objective of any PR program is to improve existing channels of communication.

Aims & Objectives of PR.• To achieve goodwill and public

interest.

• To safeguard reputation.

• To improve relationships.

Before PR Approach.• A public relation plan should address

the following questions,• Our image in the mind’s of the target

audience.• Our position in the current

corporate/marketing environment.• Reasons for the current position.• Where do we go from here?

Strategy To Achieve PR Goals.

• Media Strategy: • Which media is more suitable at low

cost?• Which media is credible?• Which medium/media would prove

impactful?

Strategy To Achieve PR Goals.

• Creative Strategy: • What is the problem?• What would be the role of PR in

solving the problem?• Whom are we talking to?• What response are we looking at?

PR Campaign Route.1)To Define Problem.2) Research Techniques:• Through personal contact.• Through mail analysis.• Through field reports.• Through focus groups.• Through formal research.

Elements Of PR.• Message.

• Medium.

• Audience.

Elements Of PR.• Message:• Who needs to be changed? (

category of audience)• What specific themes to be adopted

to reach the target audience?• Where to say what?

Message Package Options.• Print:• Circulars.• Handbills.• Brochures.• Information kits.• Annual reports.• Press kits.• Newsletter• Photographs.

Message Package Options.• Audio Visuals: • Slide sound presentations.• Filmstrips.• Multimedia display.• Static display.

Message Package Options.• Radio: • News releases.• News tapes.• “Promo” announcements.• Special broadcasts.• Radioplays.• Theme music.• Jingles/songs.

Message Package Options.• Television: • New films.• News releases.• Current affair interviews.• Talk shows.• Guest appearances.• Teleconferences.• Special broadcasts.

Message Package Options.• Video:• Presentations.

• Corporate news shows.

• Corporate briefings

• Training Presentations.

Strengths & Weaknesses.

• Media: (Press/Print.)• Strengths:• Mass reach.• Readership not seasonal.• Re-reading possible.• Convenient.• Wide choice.

• Weaknesses/Limitations:• Importance of message is decided by

newspapers.• Message life short.• Lack of intimacy.• High clutter.• Credibility issues.

• Strengths: (Audio, Visuals, Films, TV)

• Impactful.• Cluttering relatively less.• Appealing.

• Weaknesses/Limitations:• Message life short.• Transmission disturbance.• Noise disturbances.• High pitch may hider understanding.

• Outdoor Media:• Strengths:• 24 hours exposure.• Mass audience.• High penetration and coverage.• Cost effective.• Excellent reminder medium.• Larger than life feeling.• High visibility.

• Weakness/Limitations:• Only limited messages allowed.• Visibility may be lost or may be poor

in the night, if it is not illuminated.• Fragile.• Vulnerable to thefts and damage.

• Exhibitions/Trade Fairs:• Strengths:• Strong visual impact.• Best attention.• Reality in presentation.• Crowd puller.• Large exposure.

• Weaknesses/Limitations:• Limited period exposure.• Expensive.• Impact gauging is difficult.

• Literature:• Strengths:• High selectivity.• Enough time to read.• Creative use of colors and graphics.• High credibility.• Attributes can be explained.

• Weaknesses/Limitations:• Costly medium.• Limited reach.• Difficult to select target audience.

Elements Of PR.3) Audience:• Target audience is also referred as

“Public” in PR parlance.• Checklist that helps in building an

accurate picture of target audience:• Size of the target public.• Where are they located.

Elements of PR.• 3) Audience: • Language usage.• Education levels.• Economic conditions.• Cultural characteristics.• Opinion leaders.• Mass media they prefer.

PR Tools.• External Media:• Press.• Television.• Radio.• Films/Video.• Outdoor.

PR Tools.• Selective Media:• Web sites.• Information kiosks.• House journals.• Bulletin boards.

PR Tools.• Media for External

Communication:• Annual reports.• Printed literature.• Brochures.• Direct mails.

PR Tools.• Media Relations:• Press conferences.• Exhibitions.• Special events.• Press tours.

Press Conference.•An organization invites a

cross section of journalists to be face-to face with company’s spokesperson, who could be a CEO,VP, GM, or a Director etc.

Press Conference.• Steps for successful press

conference:1. Decide the occasion.2. Decide the spokesperson.3. Decide the venue.4. Decide the ideal time.5. Make press kits.6. Consider presenting a Memento.

Press Conference.• Steps for successful press

conference:7. Arrange tea/snacks etc..8. Be available for clarification.9. Review the coverage next day.

Public Relations,• PR is inexpensive.• PR favors new brands, ideas.• PR is serious.• PR is creative.• PR is credible.• PR is credible.• PR is brand building.

Education is the manifestation of

perfection already in man..

Swami Vivekanada…

Thank You All..

GOD BLESS YOU..

Advertising & Sales Promotion,BBA,BMCC

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