Marketing Communication

Sender Message Receiver

Response

Encoding Decoding

NOISE

Feedback

Channel

Communication ProcessCommunication Process

STAGES AIDA MODELHIERARCHYOF EFFECTS

MODEL

INNOVATIONADOPTION

MODEL

INFORMATION PROCESSING MODEL

COGNITIVE

Attention Awareness

Knowledge

Awareness Presentation

Attention

Comprehension

AFFECTIVE

Interest

Desire

Liking

Preference

Conviction

Interest

Evaluation

Yielding

Retention

CONATIVE Action PurchaseTrial

Adoption

Behaviour

Information Response Models/Persuasion Processes

Integrated Marketing Communication (IMC)

Reasons for growth of IMCReasons for growth of IMC

• Cluttered media environment• Fragmentation of media• Media cost• Technological advancements• Client expertise• Increasing number of ‘me-too-products’• Increasing power of retailers• Increasing global marketing• Increasing pressure on bottom line

Components of IMCComponents of IMC

The critical components of IMC are:1.The communication efforts should be directed at consumers2. An outside-in approach should be utilized3. A well-established relationship between the company and the customer.4. All communication activities should be included with contact points integrated into the strategy.5. Coordination between the communication disciplines is needed.

Advertising

AN ADVERTISEMENTAN ADVERTISEMENT is a ‘ is a ‘paid form of non-personal paid form of non-personal

presentation and promotion of ideas, goods and services by presentation and promotion of ideas, goods and services by

an identified sponsor’an identified sponsor’

• The one who initiates the process

• Specialised organisations engaged in ad development and placement

• Research specialists and others are the facilitators of the process

• Any environment capable of transmitting the message

• Recipients of advertising communication

Advertiser

Advertising agency

Support Organisations

Media

Target Audiences

Participants of the activity

Importance of AdvertisingImportance of Advertising

• As a promotional activity

• As a marketing activity

• As a business activity

Major Advertising Decisions

• Selection of target audiences

•Setting advertising objectives

•Setting advertising budget

•Deciding about message

•Deciding about media

•Selection of advertising agency

•Evaluating advertising effectiveness

Types of AdvertisingTypes of Advertising

Basis of Classification

• Audience Intended

• Geographical Spread

• Level of Demand

• Advertising Object

• Advertising Purpose

• Advertising Media

• Miscellaneous

Advertising Objectives Advertising Objectives

• Sales as Advertising objectives

• Lagged effect of advertising on sales

• Marketing objectives and advertising objectives

• Communication objectives

Setting Advertising Budget

Product Related•Stage in product Life Cycle•Product Differentiation•Product Substitutability•Durability of Product•Value of Product•Product Quality

Market Related•Nature of Market Demand•Nature of Competition•Size of Market Share

Advertising and Promotion Related Factors•Role of Advertising in Promotion Mix•Advertising Objectives•Advertising Frequency•Availability of Funds•Promotion Strategy•Media Decisions

Others•Distribution Strategy•Overall Business Strategy•Uncontrollable Environmental Factors

Factors Influencing Advertising Budget

Budgeting Methods

Percentage of sales Method

Competitive parity approach

Affordability approach

Objective and task approach

Message Strategy

Designing the MessageDesigning the Message

1. Message Content (what to say)

2. Message Structure (how to say it logically)

3. Message Format (how to say it symbolically)

4. Message Source (who should say it)

Message Content: What to Message Content: What to

SaySay

• Advertising Appeal

• Creative strategy

Message StructureMessage Structure

Important aspects of message structure are:

1. Drawing conclusions

2. Repetition

3. One-versus-two sided arguments

4. Comparative advantage

Message Format: Creative ExecutionMessage Format: Creative Execution

1. Idea generation (thinking of ‘big idea’)

2. Generation of written copy

3. Illustrating/ Artwork

4. Layout

Advertising Copy and Its ElementsAdvertising Copy and Its Elements

1. The Headline2. The Sub-head3. The Body Copy4. Captions5. Boxes and panels6. Slogans and logo

Layout ConsiderationsLayout Considerations

• Visual dominant or copy dominant• Focal Point• Balance• Contrast• Proportion • Movement• Unity

Media Planning

• New media forms

• Media fragmentation

• Need for using multiple media forms and providing

integrated communication

• Problems with terminologies

• Problems with data base and its measurement

Changing Media EnvironmentChanging Media Environment

• Translating marketing objectives and strategies into goals that media can accomplish

• Involves review of internal and external factors

• AnsweringWhom - requires finding out best prospectsWhere -requires search for areas or segments

where the most potential liesWhen - requires selection of time period

during the year for exposure to take place.

Media ObjectivesMedia Objectives

Determining media objectives

Media mix decision

Matching of media with target market to

maximise exposure and minimise waste

Media use

Media StrategiesMedia Strategies

• Reach

• Frequency

• Gross Rating Points

• Target Rating Points

• Continuity

Media EffectivenessMedia Effectiveness

Qualitative Factors of Media ChoiceQualitative Factors of Media Choice• Marketing and Advertising Objectives • Competition situation • Advertising Budget • Brand Dynamics • Target Audience Characteristics• Media Environment • Media Fragmentation• Ad Avoidance• Creative Requirements • Production Logistics• Competitors’ Media Choice

Media Types

•Traditional/ Conventional Media

• Modern Media options

•Combination Strategy

Advertising Agencies

Specialised organisations whose business is to create advertising

• Have roots in tradition as sellers of space

• Changed to buyers of space and subsequently started

offering the services of planning, preparing and placing the ad.

• In house agencies and Outside agencies

AgenciesAgencies

Referrals

Presentation

Image and reputation of the agency

The activities of public relation and publicity

undertaken by the agency.

Hiring of Outside AgencyHiring of Outside Agency

Commission system: based on size of media spend, the commission rate is usually 15%.

Fee based system: based on cost of services provided, cost is calculated using the hourly rate

Combination of fee and commission system

Cost plus agreement: based on cost of actual services rendered

Performance linked: based on the extent to which predetermined goals are met.

Compensation ArrangementsCompensation Arrangements

Evaluating Advertising Effectiveness

Decisions Involved Decisions Involved

• What to measure?• When to measure?• Where to measure?• Which method to use for measurement?

• Sales Effect

• Communication Effect

Types of Testing Techniques  

Pre tests Post tests 

Input variables Sales effects / Communication effects

- Consumer JuriesLaboratory - Portfolio testtest - Physiological measures

- Readability test- Concept test- Focus Group test

Field - Questionnaire -Recall Test

Test - vehicle test -Recognition test -Test Marketing

- Inquiry test

Problems in Measuring Ad Effectiveness Problems in Measuring Ad Effectiveness

• Cost • Research problems• Disagreement on what, when and where to

measure

Ethical and Legal Aspects of Advertising

Ethical Issues in Advertising Ethical Issues in Advertising

• Puffery• Taste in advertising• Advertising to children• Advertising of Controversial Products • Subliminal Advertising • Effects on values and life style • Green Marketing

Legal Aspects of Advertising Legal Aspects of Advertising • In India, various Acts were enacted with the intention

to protect the consumers against different forms of exploitation.

• Except for the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 (now repealed) all the other Acts were mainly punitive and preventive in nature.

• Consumer Protection Act in 1986

Self Regulation Self Regulation

• Advertisers must be left alone to regulate themselves

• Advertising Standard Council of India ASCI , has adopted a code for Self Regulation in Advertising.