Basics

By-

Pooja Dhaktod

“Advertising and sales promotion”

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MARKETING

Marketing is

the activity, set of institutions, and processes

for creating, communicating, delivering, and exchanging

offerings

that have value for customers, clients, partners, and society at

large.

Approved October 2007

(AMA, www.marketingpower.com

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COMMUNICATION

1. An act or instance of transmitting;

2. A verbal or written message;

3. A process by which information is exchanged between individuals through a common system of symbols, signs, or behavior; also : exchange of information;

4. A technique for expressing ideas effectively (as in speech); the technology of the transmission of information (as by print or telecommunication) 4

MARKETING COMMUNICATION

A process by which product information is transmitted to

the target audience

PRODUCT

INFORMATION

TARGET AUDIENCE5

MARKETING MIX

PRODUCT

Product

characteristics, options,

assortment, brand

name, packaging,

quantity, factory

guarantee

PLACE

Different types of distribution

channels, density of the

distribution system, trade

relation mix (policy of

margins, terms of delivery,

etc), merchandising advice

PRICE

List price, usual terms

of payment, usual

discounts, terms of

credit, long-term saving

campaigns

PROMOTION

Advertising

Sales promotion

Personal selling

PR6

FUNCTIONS OF ADVERTISING

INFORMING•Product Launch phase•Explanations ofProduct’s features & benefits

REMAINDING•Product Sales Growth phase•Competitive positioning

PURSUADING•Product Maturity phase•Applies to consumers’ memory(brand specific)

TARGETAUDIENCE

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INTRODUCTION TO MARKETING

COMMUNICATION CONCEPT

Modern marketing is management of 4 p’s

Product, price, place and promotion

In a sense the entire range of marketing process has a large content of communication

Eg- Product communicates a distinctive image as youthfulness, glamour or prestige

Dairy milk- lakme- Raymond's

The brand name communicates the physical and psychological attributes of the product- Dream flower talc

The packaging communicates what the manufacturer thinks of the convenience or beauty

Price communicates the quality of the product

There is communication between buyer and seller i.e. the distribution channel

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Thus each element of marketing mix helps or hinders

communication and ultimately the sales

Marketing Communication is thus a broader term than

promotional strategy

However the most important element of marketing

communication is the planned promotional

communication

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ADVERTISING

Paid form of non

personal communication

about an organization,

product, service or idea by

an identified sponsor.

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ELEMENTS OF MARKETING COMMUNICATIONS

advertisingDirect

marketing

Internet

marketing/

interactive

Sales

promotion

Publicity/publ

ic relationsPersonal selling

DECISIONS ON THE

MARKETING COMMUNICATION MIX

Personal selling direct presentation of a product to a prospective customer by a representative

of the selling organization

Advertising A paid, impersonal mass communication with a clearly-identified sponsor

Sales promotion Demand-stimulating activity designed to supplement advertising and facilitate

personal selling

Public relations A planned communication effort by an organization to contribute to generally

favourable attitudes and opinions toward an organization and its products

Publicity A special form of public relations that involves news stories about an

organization or its products13

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ADVERTISING MEDIA

Traditional

Advertising Media

Electronic

Advertising Media

Television

Radio

Newspapers

Magazines

Books

Direct mail

Billboards

Transit cards

Internet

Computer modems

Fax machines

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ADVERTISING

Advantages

Ability to reach large number

of people

Cost per contact is low

Can be micro-targeted

Disadvantages

Total cost is high

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SALES PROMOTION

Marketing activities--other than

personal selling, advertising, and

public relations--that stimulate

consumer buying and

dealer effectiveness.

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SALES PROMOTION

End

Consumers

Trade Customers

Company

Employees

Sales Promotion

Targets

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SALES PROMOTION

Free samples

Contests

Premiums

Trade Shows

Vacation Giveaways

Coupons

Popular Tools

for

Consumer Sales

Promotion

MARKETING COMMUNICATION THEORY

SENDER MESSAGE RECIEVER

encoding

Channel MESSAGE

decodingBarriers

or

Noise

FEEDBACK RESPONSE

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SENDERThe party sending

the message to another partyMajor parties in communication

MESSAGEThe set of messages

the sender sends

Major

communication tool

ENCODINGPutting through

into symbolic form

One of

communication function

CHANNEL Communication channels

message is sent through

Major

communication tool

DECODINGThe process by which receivers

assign meaning to the sender’s

transmitted symbols

One of

communication function

The party receiving

the message (audience)RECEIVER Major parties In communication

RESPONSESet of reactions following

exposure/reception of message

One of

communication function

NOISE (Un)planned static or distortion during process of communication

FEEDBACKPart of response

transmitted back to the sender

One of

communication function20

ADVERTISING AND BRANDIND

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BRANDS

A brand is a name, term, sign, symbol, or design which

is intended to identify the goods or services of one seller

or group of sellers and to differentiate them from those

of competitors.

BRAND AWARENESS

Brand awareness is a marketing concept that enables

marketers to quantify levels and trends in consumer

knowledge and awareness of a brand's existence. At the

aggregate (brand) level, it refers to the proportion of

consumers who know about the brand

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BRAND ATTITUDE AND FEELING

Brand attitude is how company portrays the attitude of the brand and

how the consumers think about it

BRAND EQUITY

The value premium that a company realizes from a product with a

recognizable name as compared to its generic equivalent. Companies

can create brand equity for their products by making them

memorable

BRAND IMAGE

Brand image is the current view of the customers about a brand. It

can be defined as a unique bundle of associations within the minds

of target customers. It signifies what the brand presently stands for

BRAND PERSONALITY

A brand personality is something to which the consumer

can relate, and an effective brand will increase its brand

equity by having a consistent set of traits23

CUSTOMER BRAND DECISION MAKING

Problem Recognition

Information Search

Evaluating Alternatives

Purchase

Post Purchase Evaluation

Feedback

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TYPES OF ADVERTISING

Television

Infomercials / Direct Marketing

Radio advertising

Press advertising

Online advertising

Billboard advertising

In-store advertising

Covert advertising

Celebrity endorsements

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ACCOUNT MANAGEMENT –AGENCY

OPERATION

An advertising agency or ad agency is a service

business dedicated to creating, planning and handling

advertising (and sometimes other forms of promotion)

for its clients. An ad agency is independent from the

client and provides an outside point of view to the effort

of selling the client's products or services. An agency can

also handle overall marketing and branding strategies

and sales promotions for its clients

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ACCOUNT PLANNING OR SERVICING A CLIENT

There are several functions which an account planner

performs

1. Plans for the objective of the advertisement

2. Evaluates and selects selected feedbacks

3. Making objective clear and implementation

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2.CREATIVE SERVICES(PRODUCTION AND

DEVELOPMENT)

Creative review

board

Creative director

Copy Supervisor

Copy Writers

Clubbed with team of art directors and

TV producers

Broadcast

Production

DepartmentArt Studio

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3. MARKETING SERVICES

A.MEDIA PLANNING AND BUYING

The media department have Research analysts, Planners

and Buyers

Analysts keep abreast of changes in media audiences,

cost and competitors spending. They test alternative

plans for reaching the clients best prospects

Planners work closely with other members in

developing media strategy and schedule

Buyers executes the plan. They look for best rate and

place to buy spot television and radio time and place the

orders.

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B. ACCOUNT PLANNING AND RESEARCH

DEPARTMENT

Planning- testing product concept-defining market

targets-developing marketing and test marketing and

measuring results are the functions of research

department

People in research department design the projects,

interpret the data, and present findings

Account Planning Department act as strategic specialists

who prepare comprehensive details about the consumers

needs and wants

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4.ADMINISTRATIVE SERVICES

Finance Department

PR Department

5. Internal Services The department which serves Other operations within the

agency are called internal services department

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ADVERTISING BUDGET

There are two ways to set a budget for your advertising campaign:

You can ask yourself what you can afford to spend,

The Percent of Sales Method: The advertising campaign budget is a constant percentage of desired sales. A car manufacturer may spend less than 1% of sales, while a small retailer may budget 3 -7% of sales. A jewelry store may budget 8 -12% of sales, and other companies may budget 20% or more.

This method works as long as the advertising campaign budget is set as a percentage of desired sales. If the budget is set to actual sales, and sales drop, you do not want to cut your advertising campaign budget, or you will get caught in a downward spiral. 32

The Task Objective Method: How much money do

you need to spend to reach the specific goals you have

outlined for the advertising campaign?

This is especially effective when you are starting out, or

if you are trying to grow rapidly.

Some advertising campaign strategies call for heavy

spending upfront in order to win long-term customers.

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The Historical Method: How much did you spend to reach your sales goals in previous years or periods? You will find that by tracking your ads, you will know in advance what you need to do to accomplish your goals.

Share of Market - Share of Voice: This method links market share to advertising expenditure. A company with a 20% market share would spend slightly more than 20% of the total advertising amount spent in the market for that product or service. For new companies, expenditures would be 1.5 times the desired market share until that position is attained. [So if you want 20% market share, you spend 30% of total advertising amount in that market until you get it].

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Competitive Parity: With competitive parity you spend

in equal amounts to your competitors as a percentage of

market share. This is a self-defense method of budgeting

marketing and advertising expenditures

The Combination Method: The best advertising

campaign budget you can set will be based on some

combination of all of the previous models. You want to

maintain a minimum level of advertising, fulfill specific

goals, maintain your market share, keep up with your

competitors, and compare everything to last year.

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LETS START THE JOURNEY OF CREATIVITY

ANY QUESTIONS???

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