MM-II (Module – III )
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Transcript of MM-II (Module – III )
8/6/2019 MM-II (Module – III )
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Module III , Promotion
�Advertising
�Sales Promotion
�Personal Selling
�Public Relation
�Publicity
�Propaganda
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MARKETING COMMUNICATION MIX
Marketing Communication Mix/Promotion mix is the"Promotion" of the Marketing Ps and covers every method
and medium of communicating with your target audience.
Propaganda
Sales
Promotion
Public
Relation
Personal
Selling
Publicity
Advertising
Marketing
Communication
Mix
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Advertising ± A definition
It can be defined as the paid form of non-personal
communication and presentation of ideas, goods and
services by an identified sponsor.
Defining Modern Advertising
� Paid persuasive communication
� Uses non-personal / mass media to reach broad audiences
� Connects an identified sponsor with a target audience
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Advertisement Defined
Ads are like people
You can see most people a hundred times
and not remember them,
but meet someone you like once,
and you will never forget them
Sir frank Lowe
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Advertising and Advertisement
*Advertising refers to the art and job of
presenting goods and services etc. It is a
process.* But the term advertisement refers to the
form in which the actual massage appears.
*Advertising is made through advertisements
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Five Ms of Advertisement
� Advertising is called direct communication with customers which includes following five Ms
1. Mission: It states the objectives of the advertising and
the steps to achieve the objectives. It also includes the sales goal of the company.
2. Money: It gives an idea that how much money should be spent by the company for the advertisement.
Factors to be considered for this are stage of product life cycle, market share and consumer base, competition, advertisement frequency and product substitutability.
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3. Message: Message includes what message should
be given. It includes message generation, message
evaluation and selection, message execution and
social responsibility review.
4. Media: It includes which media should be used for
the advertisement. It also includes reach, frequency,
impact of the advertisement. It also contains major
media types, media vehicles, media timing etc.
5. Measurement: it is nothing but evaluation of the
results. It measures communication impact and
sales impact by an advertisement.
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Advertising Objective
Informing
Persuading
Reminding
Reinforcement
Assisting Other Company Efforts 8
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Advertising Objective
Informing
� Makes consumers aware, educates them about
the features and benefits, and facilitates thecreation of positive brand images
� Facilitates the introduction of new brands and
increases demand for existing brands
3
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Advertising Objective
Persuading
� Persuades customers to try advertisedproducts and services
�� Primary demandPrimary demand:
�� Secondary demandSecondary demand:
10
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Advertising Objective
Reminding
� Keeps a companys brand fresh in the consumers memory
� Influences brand switching
11
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Advertising Objective
Reinforcing
� It seeks to assure current purchasers that they have made the right choice.
12
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Advertising Objectives
Assisting Other Company Efforts
�A
dvertising is just one member of themarketing communications team
� Sometimes, an assister that facilitates other
company efforts in the marketing
communications process
� Examples?13
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FUNCTIONS OF ADVERTISING:-
Advertising isn¶t an end but a
means to an end ± A tool that advertisers can use
to reach their goals.
1.Stimulating demand
2.Strengthen other promotion mix element
3.Cut cost
4.Lower price
5.Competitive weapon
6.Create differentiation
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ADVERTISING MESSAGE
Message consist of idea together with
other relevant information. The idea spots the
uniqueness of the product to win a place in the consumer mind. Information gives detail of the
product which helps in taking the final decision.
Advertising message design identifies
the consumers perceptions about the products.
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Message Structure
Most advertising messages share common components within the message including:
� The Appeal This refers to the underlying idea that captures the attention of a message receiver. Appeals can fall into such categories as rational, emotional, fearful, humorous
etc. � Value Proposition The advertising message often contains
a reason for customers to be interested in the product which often means the ad will emphasize the benefits obtained from using the product.
� Slogan To help position the product in customers mind
and distinguish it from competitors offerings, advertisements will contain a word or phrase that is repeated across several different messages and different media outlets.
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MESSAGE GENERATION
Message generation can be done in thefollowing ways:
� Inductive: By talking to consumers, dealers,experts and competitors. Consumers are the
major source of good ideas. Their feeling aboutthe product, its strengths, and weaknesses givesenough information that could aid the Messagegeneration process.
� Deductive: John C. Meloney proposed aframework for generating Advertising Messages.
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MESSAGE GENERATION
According to him, a buyer expects four types of rewards from a product:
� Rational� Sensory
� Social
� Ego Satisfaction.
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Advertising Media
A Media is a vehicle for carrying the sales
message of an advertiser to the prospect.
It is indeed a vehicle by which advertiser convey their message to a large group of
prospect and thereby closing the gap
between producer and consumer.
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Types of media
� Above - the - line Media:- The recognized agencies get commission from these medias. Press, TV,
Outdoor, Posters , cinema and radio comes under
these category.
� Below the line Media:- Those who dont give commission to the ad agency. The agency adds a
percentage as a handling or profit charge or
charge a service fee. The examples are: Direct
mail, POS, sales promotion, exhibition and sales literature
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Major Ad Media Categories: ± Print
� Newspapers� Magazines� Out-of -Home
± Broadcast� Radio� Television
� Narrow-cast Media ± Outdoor
± Transit ± Other Media
� Direct Mail, Yellow Pages, etc� New Media / Specialty Media� Direct Advertising / Direct Marketing� Internet
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Major Ad Media Categories: ± Print
� Newspapers� Magazines� Out-of -Home
± Broadcast� Radio� Television
� Narrow-cast Media ± Outdoor
± Transit ± Other Media
� Direct Mail, Yellow Pages, etc� New Media / Specialty Media� Direct Advertising / Direct Marketing� Internet
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NEWSPAPER
1. The primary role of newspaper is prompt
delivery & detailed coverage of news and
other information.
2. It incorporates interesting features forreaders
3. Detailed message can be processed at the
readers convenient pace.4. These are high-involvement media.
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NEWSPAPER
Types of Newspaper:-
1. Classified advertising
2. Display advertising
3. Special interest advertising
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Magazines
1. Availability of wide variety of magazines make them quite appealing to a large no. of advertisers.
2. It can cover a wide range & variety of customers.
3. It can allow detailed presentation with beautiful reproduction & colorful
photographs.4. It is comparatively more high involvement
than newspaper.
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Magazines
Types of Magazines:-1. Consumer Magazines
* General interest magazine
* Women / Lifestyle magazines
* Film Magazine* Special interest magazine
2. Business Publication
*General business
* Professional
*Trade & Industrial
* Institutional publication
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RADIO
1. Radio is used to be a premier mass medium
for audience and advertiser
2. Radio can deliver ad messages to a very large
number of audience at their convenienceacross the length and breadth of our country
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TELEVISION
1. Television is believed to be the mostauthoritative, influential, and exciting of all
medium.
2. It is the most ideal medium for advertisingbecause of its ability to combine visual images,
sound, motion and colour.
3. It provides advertiser most creative &imaginative ad message as compared to any
other medium.
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Outdoor advertising
1. It is the oldest medium existed as early as 5000 years ago in Babylon, Greece and Egypt .
2. Outdoor ad can generate considerable reach and
frequency levels at a fraction of cost of mainstream
media.3. It can generate immediate brand name recognition
when introducing anew product and complement
other forms of advertising.
4. To remind customers about established and recognized
brands of the marketers
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Transit Advertising
1. Transit ad is targeting millions of people whoare exposed to various modes of transport.
2. The rate structure varies depending on the
site, period and size of display.3. A very large part of ambulatory population
exposed to transit advertising
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Budgeting Considerations
in Practice
� What is the Ad objective?
� How much are competitors spending?� How much money is available?
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Advertising Budget
A budget is a forward plan of any activity expressed in terms of rupees and budgeting is the process of this planning.
Requirement of an advertising budget:-1. Ad budget is the translation of an advertising plan
into rupees.
2. This is the important source for management to get
knowledge regarding ad.3. It serves as a decision-making as well as controlling
tool for the top management.
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Budgeting Methods
� Percent-of-Sales Budgeting
� Objective-and-Task Method
� Competitive Parity Method
(match competitors method)
� Affordability Method
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Percentage-of-Sales Budgeting
� A company sets a brands advertising
budget by simply establishing the budget as
a fixed percentage of past or anticipatedsales volume
� Criticized as being illogical.
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Objective-and-Task Method
� The most sensible and defendable
advertising budgeting method� Specify what role they expect advertising
to play for a brand and then set the budget
accordingly
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The Competitive Parity Method
� Sets the ad budget by basically following
what competitors are doing
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Affordability Method
� Only the funds that remain after budgeting
for everything else are spent on advertising
� Only the most unsophisticated and
impoverished firms
� However, affordability and competitive
considerations influence the budgeting
decisions of all companies
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Sales Promotion
Sales promotion consists of a diversecollection of incentive tools, mostly short term designed to
stimulate quicker or greater purchase of particular product
or services by consumer or the trade.
Sales promotion is the act of influencingcustomer/consumer perception and behaviour to build
market share and sales that reinforce brand image
Sales promotion is a term that is closely
linked with direct and online marketing, but has itsorigins in FMCG
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Sales Promotion
The main tools falling into this category include:
1. Samples
2. Redeemable coupons
3. Cash-back offers4. Cents-off deals or price packs
5. Premium offers
6. Advertising specialties
7. Patronage rewards
8. Point-of-purchase (POP) promotions
9. Contests and games of chance and skill
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Selecting Sales Promotion
Tools
Sales Promotion Tools
Contests and games
of skill and chanceSamples
Point-of -
Purchase coupons
Patronage
Rewards
Cash-back
offers
Premiums
Advertising
Specialties
Cents-off deals
or Price Packs
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Purpose of Sales Promotion1
.Sellers use sales promotions to attract new triers,2. to reward brand-loyal customers and thereby retain
them,
3. to reduce the time between purchases, and even to
turn light users into medium or heavy users.4. The aim might also be to regain past purchasers who
have ceased buying.
New triers of a product category fall into one of
three groups:non-usersloyal users of another brandbrand switchers
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Developing Sales Promotion
Programs
� The marketer must decide:
± The size of the incentive.
± Conditions for participation.
± Duration of promotion
± Selection of proper vehicle to carry the program.
± Decide promotion budget
± How to evaluate the promotions program throughsurveys and/or experiments etc.
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Personal Selling
� Sales personnel serves as the companys personallink to the customers.
� The people who do the selling go by many names,such as key account managers, account executives,
sales consultants, sales engineers, agents, districtmanagers, and account development reps.
� Salespeople are involved in two-way personalcommunication with customers with whom they
build long term relationships and brings back profitto the organization.
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The Role of the Sales force
� The sales force is a critical link between the company and itscustomers.
� They find and develop new customers and communicateinformation about the companys offerings.
� They sell products, answer objections, negotiate prices andterms and close sales.
� Sales people change their approach by understandingcustomers psychology and produce profit for the company by
satisfying customers.� They should be able to understand sales data, measure market
potential, gather market intelligence and develop marketingstrategies and plans.
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DESIGNING & MANAGING SALESFORCE:
Designing
Sales ForceS.F.
Objective
S.F.
Strategy
S.F.
Structure
S.F.Size
S.F.Compensation
Improving
Sales force
Effectiveness
Recruiting &
Selecting
Sales force
Training
Sales force
Supervising
Sales force
Motivating
Sales force
Evaluating
Sales force
Training in
Selling
Technique
Negotiation
Skill
Relationship
Building
Skill
Managing
Sales Force
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Major steps in effective selling
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PUBLICITY
� Publicity is the deliberate attempt to managethe public's perception of a subject. The subjects
of publicity include people, goods and services,
organizations of all kinds, and works of art orentertainment.
� From a marketing perspective, publicity is one
component of promotion & one element of the
promotional mix But the publicist cannot wait aroundfor the news to present opportunities. They must also
try to create their own news.
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About Publicity� Publicity involves supplying information that is factual,
interesting, and newsworthy to media such as radio,television, magazines, newspapers, and trade journals
� Publicity is information from an outside source that is
used by the media because the information has news
value.
� It is an uncontrolled method of placing messages in the
media because the source does not pay the media for
placement.� Publicity is typically generated from an organization's
public relations department and its goal is to gain media
coverage.
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Examples of publicity:
� Art exhibitions
� Event sponsorship
� Arrange a speech or talk
� Make an analysis or prediction
� Conduct a poll or survey� Issue a report
� Take a stand on a controversial subject
� Arrange for a testimonial
� Announce an appointment� Invent then present an award
� Stage a debate
� Issue a commendation
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Importance of Publicity
� The advantages of publicity are low cost, andcredibility (particularly if the publicity is aired in
between news stories like on evening TV news casts).
� Publicity draws on several key themes including
birth, love, marriage and death. These are of particular interest because they are themes in
human lives which feature heavily throughout life.
� Ethical performance will help a company prevent or
counteract negative publicity and will give a
company, organization, or individual a competitive
edge in achievement of goal.
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� Effective publicity can persuade customers to
buy a product or service, bring more customers
into a store, increase attendance at a special
event, and help clarifying misconceptions.
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Public Relation
� A public is any group that has an actual or
potential interest in or impact on a companys
ability to achieve its objectives.
� Public relation (PR) involves a variety of
programs designed to promote/protect a
companys image or its individual products.
� The old name of MPR was publicity.
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Activities of PR Department
� Press relation
� Product publicity
� Corporate communication
� Lobbying
� Counseling
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Role of Public Relation
� Assisting in the launch of new product.
� Assisting in repositioning a mature product
� Building interest in a product category� Influencing specific target group
� Defending products that have encountered
public problem� Building the corporate image in a way that
projects favorably on its product.