UNIT 1 Introduction of Consumer Behaviour; Consumer behavior is defined as the decision process and the physical activity individuals engage in when evaluating , acquiring using disposing of goods and services. Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Defining Consumer Behaviour; Acc. to Kotler & Armstrong consumer behavior refers to the buyer behavior of final consumer of final consumer of individual household who buys goods & services for personal consumption. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen
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interest in the re-discovery of the true meaning of marketing through the re- affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Reasons for understanding CB: Most products eventually end up in private households even though they will pass through a number of steps on their way from producer to end user. Producers and traders form vertical chains or networks, called value chains, at the end of which is the consumer.
Understanding consumer behaviour is not only important for the producer but for all the other actors in the chain. The value that the consumer puts on the goods or services limits what everyone else can get from the value chain. The following reasons are: 1. Importance to consumers 2. Importance to Marketers 3. Importance to students of human behavior 4. Application to decision making
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Under standing consumer and Market segments Consumer : 1. Consumer behavior and marketing mgmt by understanding consumer needs and wants. Focusing companys objectives. 2. Market opportunity analysis. 3. Target market selection. 4. Marketing mix determination.(Product,price,place,promotion.) 5. C.B. and nonprofit social marketing. 6. C.B. and governmental Decision making. The Black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). It is related to the black box theory of behaviorism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus nare given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response.
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MARKET SEGMENT According to Philip kotler When ever a market for a product or service consist of two or more buyers ,the market is capable of of being segmented ,i.e. divided into meaningful buyer group.The purpose of segmentation is to determine differences among buyers which may be consequential in choosing away them or marketing to them. Levels of market segmentation 1. Segment marketing 2. Niche marketing 3. Local marketing 4. Individual marketing
Importance of market segmentation: 1. Adjustment of product and marketing appeals 2. Better position to spot marketing opp. 3. Allocation of marketing budget 4. Making the competition effectively 5. Effective marketing program
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ENVIRONMENTAL INFLUENCES ON CONSUMER BEHAVIOR
The following are the factors influencing c.b.
The decision process involves Problem recognition Information search and evaluation Purchasing and post purchasing behaviour
DECISION MAKING PROCESS INDIVIDUAL DETERMINANTS EXTERNAL FACTORS
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Individual determinants involve: Information processing Learning and memory Personality and self concept Attitude Motivation and involvement
External environment factors Sub cultural influences Social class influences Social group influences Family influences Personal influences Other influence Cultural influences
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Culture Culture is used to describe what people within a group have in common. It is learned and consumer behaviour is related to it in several ways.Cultural differences in consumer behaviour present obvious hazards for the exporting manufacturer and is therefore an important area of international marketing. It a particular form or stage of civilization, as that of a certain nation or period .
For the purpose of studying consumer behaviour, culture can be defined as the sum total of learned beliefs, values and customs that serve to guide and direct the consumer behaviour of all members of that society.
Howard and Sheth have defined culture as A selective, manmade way of responding to experience, a set of behavioral pattern. Thus, culture consists of traditional ideas and in particular the values, which are attached to these ideas. It includes knowledge, belief, art, morale, law, customs and all other habits acquired by man as a member of society. An accepted concept about culture is that includes a set of learned beliefs, values, attitudes, habits and forms of behaviour that are shared by a society and are transmitted from generation to generation within that society.
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Subculture: Subculture distinguish on the basis of age and etenic dimensions receive particular attention. The emphasis is on values customs traditions. A subculture is an identifiable distinct, cultural group, which, while following the dominant cultural values of the overall society also has its own belief, values and customs that set them apart from other members of the same society. Social class: Refers to the process by which people in society rank one another into different social positions. Refers to the process by which people in society rank one another into different social positions. Social classes show distinct product and brand preferences in such areas as clothing, home furnishings, leisure activity, and automobiles.
A consumers behavior is also influenced by social factors, such as the consumers small groups, family, and social roles and status. Because these social factors can strongly affect consumer responses, companies must take them into account when designing their marketing strategies.
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L6 Reference group References groups are groups that serve as direct or indirect points of comparison or reference in the forming of a persons attitudes or behavior. Marketers try to identify the reference groups of their target markets. Family influences family members can strongly influence buyer behavior. We can distinguish between two families in the buyers life. The buyers parents make up the family of orientation. A family can be broadly divided in to family orientation and family pro creation . From parents a person acquires an orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love. The family of procreation-the buyers spouse and children-exert a more direct influence on everyday buying behavior. It has a strong influence on ones purchasing decision .Decision are made by individual with little influence from other family members. Personal influences: These are the effects on individual resulting from communication with others which has been strong interest to marketers. These serve an important function to opinion leaders. A persons occupation affects the goods and services bought. Marketers try to identify the occupational groups that have an above-average interest in their products and services.
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L7 Diffusion of innovations: Innovation means new ideas and diffusion means diffusing it in the market or implementing it.
Adoption
Trial
Legitimation
Attitude
Comprehension
Awareness
Assignment 1 Q.1 Define the term consumer behaviour? Q.2 Are consumer and Customer the same?
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Q.3 write down the difference between consumer and a customer? Q.4 What are the Reasons for understanding CB? Q.5 write down the steps of Decision making process? Q.6 what is the need of post purchase behaviour? Q.7 describe the term dissonance ? Q.8 Describe and Give an example of Niche marketing? Q.9 why is it necessary to apply CB knowledge? Q.10 What are the reasons for applying consumer behavior knowledge?
Assignment 2 Case Ist Dove Doves new promotional campaign tried to break away from the stereotype images of beauty portrayed by the media and the advertisements .The campaign titled campaign for real beauty caught the attention of the public .The caselet deals with the challenges of the company had to face while implementing the promotional campaign. Questions for discussion: 1.Assess the challenges the campaign for real beauty campaign faced and will face in the future. 2.In which ways Campaign for real beauty unique as compared to promotional campaigns of beauty companies.
UNIT 2 L9 Individual determinants of CB
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Decision Making Process
Industrial determinants: Attitude Motivation and Involvement Learning and Memory Personality and self concept
L10+L11 Motivation Motivation is a drive which propels a person towards achieving his goals ,it thus deals with how behavior gets started ,energized , sustained ,directed and stopped.
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Motivation is the basis for all consumer activity including all association in which we look towards the purchase of a product , use them ,repair or dispose off. Are internal forces that energizes behavior and provide guidance to direct the activated behavior. Involvement describes the personal relevance or importance that the consumer perceives.High involvement lead to a motivated state.
Maslows-Hierarchy of Needs Theory: This theory was proposed by Abraham Maslow and is based on the assumption that people are motivated by a series of five universal needs. These needs are ranked, according to the order in which they influence human behavior, in hierarchical fashion Physiological needs are deemed to be the lowest- level needs. These needs include the needs such as food & water . So long as physiological needs are unsatisfied, they exist as a driving or motivating force in a person's life. A hungry person has a felt need. This felt need sets up both psychological and physical tensions that manifest themselves in overt behaviors directed at reducing those tensions (getting something to eat). Once the hunger is sated, the tension is reduced, and the need for food ceases to motivate. At this point (assuming that other physiological requirements are also satisfied) the next higher order need becomes the motivating need. Thus, safety needs -- the needs for shelter and security -- become the motivators of human behavior. Safety needs include a desire for security, stability, dependency, protection, freedom from fear and anxiety, and a need for structure, order, and law.. In the workplace this needs translates into a need for at least a minimal degree of employment security; the knowledge that we cannot be fired on a whim and that appropriate levels of effort and productivity will ensure continued employment. Social needs include the need for belongingness and love. Generally, as gregarious creatures, human have a need to belong. In the workplace, this need may be satisfied by an ability to interact with one's coworkers and perhaps to be able to work collaboratively with these colleagues.
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After social needs have been satisfied, ego and esteem needs become the motivating needs. Esteem needs include the desire for self-respect, self-esteem, and the esteem of others. When focused externally, these needs also include the desire for reputation, prestige, status, fame, glory, dominance, recognition, attention, importance, and appreciation. The highest need in Maslow's hierarchy is that of self-actualization; the need for self-realization, continuous self-development, and the process of becoming all that a person is capable of becoming. Alderfer's Hierarchy of Motivational Needs : Clayton Alderfer reworked Maslow's Need Hierarchy to align it more closely with empirical research. Alderfer's theory is called the ERG theory -- Existence, Relatedness, and Growth. Existence refers to our concern with basic material existence requirements; what Maslow called physiological and safety needs. Relatedness refers to the desire we have for maintaining interpersonal relationships; similar to Maslow's social/love need, and the external component of his esteem need. Growth refers to an intrinsic desire for personal development; the intrinsic component of Maslow's esteem need, and self-actualization
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Alderfer also deals with frustration-regression. That is, if a higher-order need is frustrated, an individual then seeks to increase the satisfaction of a lower-order need. In summary, ERG theory argues, like Maslow, that satisfied lower- order needs lead to the desire to satisfy higher-order needs; but multiple needs can be operating as motivators at the same time, and frustration in attempting to satisfy a higher- level need can result in regression to a lower- level need. Alderfer's Hierarchy of Motivational Needs Level of Need Definition Properties Growth Impel a person to make creative or productive effects on himself and his environment Satisfied through using capabilities in engaging problems; creates a greater sense of wholeness and fullness as a human being Relatedness Involve relationships with significant others Satisfied by mutually sharing thoughts and feelings; acceptance, confirmation,
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under- standing, and influence are elements Existence Includes all of the various forms of material and psychological desires When divided among people one person's gain is another's loss if resources are limited L12 Personality and Self Concept According to Hilgard and Atkinson Personality may be understood as a characterstics pattern of behavior and modes of thinking that determine a persons adjustment to the environment. Each persons distinct personality will influence his or her buying behavior. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to ones own environment. Many marketers use a concept related to personality-a persons self-concept. Provide the consumer with the central theme.They provide the structure for the individual for the individual so that a consistent pattern of behavior can be developed.
Theories 1.Type theory
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Body Buid This was given by Kresthner and Sheldon.They may be classified on the basis of face and body.They may be Ectomorph ,Endomorph and Mesomorph. Type A and Type B Type A are hard working , aggressive ,competitive and high achievement oriented. Type B Easy going ,Social , non compitive non time bound. 2.Trait Theory A trait makes a difference between two persons .it is derieved from the behavior of a person. 3.Psycoanalytical theory: Oral stage Anal stage Phallic stage Genetic stage Self concept: Individuals have a specific perception and image of themselves .These are closely connected to the personality of the product or service routinised . Self concept described as how one perceives himself and his behavior in the market place. It consist of Actual self Ideal self Expected self
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Social self Ideal social self Situational self. L13 +L14 Consumer Perception A motivated person is ready to act. How the person acts is influenced by his or her perception of the situation. Two people with the same motivation and in the same situation may act quite differently because they perceive the situation differently. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. People can form different perceptions of the same stimulus because of three perceptual processes: selective exposure, selective distortion, and selective retention. Consumer Learning Learning involves a change in an organization of a long term memory or behavior due to training and experience.It is a continuous process and occurs all the time.The change in behavior confirm that learning has taken place. What consumers learn ,how they learn ,and what factors govern the retention. of learned material consumer acquire and remember product names and characteristics.
Definition: According to E.R.Hilgard Learning may be defined as a relatively permanant in behavior that occurs as a result of prior experience.
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It describes changes in an individuals behavior arising from experience. The practical significance of learning theory of marketers is that they can build demand for a product by associating it with strong drives, using motivating cues, and to the same drives as competitors and providing similar cues because buyers are more likely to transfer loyalty to similar brands then to dissimilar ones. Or it may design its brand to appeal to a different set of drives and offer strong cue inducements to switch (discrimination). Factors determining Learning: 1.Motive 2.Stimuli 3.response 4.Reinforcement 5.Retention Theories of Learning 1.Classical conditioning theory 2.Operant conditioning theory 3.Cognitive theory 4.Social Learning L15 Consumer Attitude formation and Change :
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Consumer attitude are a composition of consumers belief, feeling and behavior intentions towards some objects within a contest of marketing usually a brand on a retail store. A consumer may hold both positive or negative beliefs towards an objects. People have attitudes regarding religion, politics, clothes, music, food, and almost everything else. An Attitude describes a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea. Attitudes put people into a frame of mind of liking or disliking things, moving toward or away from them. Beliefs may also be expressed in a neutral way. Some may differ depending upon persons situation or there levels of acceptance. The belief that consumer hold need not to be accurate and some beliefs may be but with contradictory situation. Attitude guide our basic orientation towards objects , people events and our activities. Attitudes influence how consumers will act and react to product and services. Characteristics of attitude: 1.Atitude are not rigid. 2.Appearence of an attitude depends upon learning. 3. A relationship between a person and an object is not nutreal but has a motivational properties. 4.Attitude cannot be observed directly. 5.The subject relationship is accomplished through the formation by differentiating between persons positive or negative attitude. Functions Of attitude
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Information processing: The consumer decision making process is highly effected by the information provided to the consumers or the customers .The customer filters the informationand gathers the relevant data related for the purchase action. At times the information provided through advertisements which are endorsed by celebrity leaves an remarkable impression. The information related with the purchase decision is processed by the mind in priority order which is helpful for the purchase decision. It refers to the activities that consumer engage in when acquiring ,integrating and evaluating information. These involve actively seeking information and passively receiving it. L16 +L17 Consumer Decision process: Functions Of Attitude Utility Value experience Knowledge Ego defensive
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Depending on the consequences of making a wrong decision, the complexity of this process can range from careful analysis to pure impulse. While an impulse buy, such as buying a packet of chewing gum, can take place instantaneously, complex purchases mostly stretch over a long period of time. This buying process is an iterative process, where people collect information from different sources and repeatedly return to re-evaluate and compare the information they have found.
A decision making process involves Problem recognition Information search and evaluation Purchasing and
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post purchasing behaviour The major steps involved are: Problem /need recognition: It is the first step of the decision making process . It occurs when the consumers is activated by awareness of sufficient difference between the actual state of affairs and concept of ideal situation. Search and evaluation: a quick and largely unconscious review of memory for stored information, and experiences regarding the problem. This information is in the form of believes and attitude that have influenced the consumer behavior . The basic prerequisites for customers to make their way through the information search stage is that they are able to find products and that they can easily identify purchase options. In order to support the customer decision-making process at this stage, we need to know: Which words will customers use when browsing and searching for purchase options? What basic information do customers need in order to identify purchase options? What educational information do novices need in order to decide which product criteria are important to them?
The alternative evaluation phase , involves comparing the information gained in the search of process for alternative products and brands to the product judging criteria that the consumer has developed. Large number of customers dropped out at this stage simply because the product information was so inadequate, that they couldn't decide whether the products they were interested in would fit their needs.
Purchasing process: This stage emphasis should be on providing the easies possible way for the customers to carry their orders through. Follow strong purchase intentions. This process involves a series of selections including the type of retail outlets as well as the specific brand or service to use. Post purchase behavior : these leads to various outcomes. The outcome of the post-purchase evaluation stage is a level of customer satisfaction or dissatisfaction, which is determined by the customer's overall feelings about the product and buying experience. One such outcome is satisfaction as a result of direct experiences in using the brand. Whether the consumer is satisfied or dis satisfied with the product or services delivered. L19+L20 CB models Models are simplifications of reality intended to make it more manageable . The problem identify is models always use some hope of details to be served in decision making process. The focus is on consumer decision making on how individual consumer arrive at brand choices .
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Product offering stimuli
Consumer decision Process Nicosia Model This model is concerned with inter relationshipbetween the firms marketing communication, the attributes of the consumer ,The consumer decision process and the feed back of consumers response to the firm .
Harward Model Jhon Harward & Jagdish sheth put forward the harvord model in 1996 In their publication & title the theory of buyer behavior , the authors Attitude Search & evaluation Motivation Decision /action Purchasing behaviour Firm attributes Consumer attributes Experience /feedback Consumption & storages Field 1 Field 2 Field 3 Field 4
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Interest was to develop a unified theory useful for the model depict rational brand choices by consumers under various commission . The model distinguishes 3 level of decision making . Extensive problem solving It involve early stages of decision making in which buyer have little or no information about the brand. Linked problem solving It is more advance stage but consumer is not able to access brand difference or price options. Routinised problem solving The response occurs ,when behavior have well defined choice criteria . they have pre dispassion towards brand. Little confusion exit in consumers mind & he is ready to purchase are the measure set of variables in this model a) Input b) Perceptual/ learning precept c) Output d) External variable, L21+L22 CONSUMERISM: Consumers are by and large exploited by large no of restricted unfair trade practices .Consumerism is an collective endeavour of consumer to protect their
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interest . The term "consumerism" was first used in 1915 to refer to "advocacy of the rights and interests of consumers" . The consumer should expect consumerism as a means of enjoying their rights.It should exceed in making business and government more responsive to the right of consumer . Definition According to Philip Kotler consumerism is the social movement seeking to safe guard the rise and power of consumers Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amounts. These are the techniques used to aware the consumer about there rights and responsibility and follow the various acts which are used for the consumer protection. For example consumer protection act, consumer forum.
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Consumer : Self help is the best help . State : To form organs legislative ,Judiciary , and executive . Business : Take consumerism as an opportunity and not as an threat . Voluntary association : Keeping consumer before constrain ,vision and self of founder member . The term "consumerism" is also used to refer to the consumerist movement, consumer protection or consumer activism, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards. In this sense it is a movement or a set of policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer. L23+L24 Organizational buying behavior: Consumerism Consumer State Voluntary association Business
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Organization buyer buy product for further processing or use in there organization The organizational market has fewer customers. Those customers make larger purchase (in volume and rupees). Organizational buyers make purchase decision in order to satisfy there goals ,as do final consumers. Organizations have the goals of producing goods ,providing a service or reselling a item and therefore buy products and services that will allow them to effectively engage in these activities. Types of buying situations: Straight Re buy: Are rather routine purchase usually under similar terms of sale and purchase. Modified re buy: Occurs when buyers re evaluate and may make changes in there available purchase. New Task: Are those that new to the organization. Buying centers : Is an informal cross functional departmental unit in which the objective is the acquisition ,dissemination and processing of relavant purchasing related information. Roles in buying centers: 1.User 2.Buyer 3.Gate Keeper 4.Decider 5.Influencer
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Organizational buying decision process
Consumer buyer Vs Organizational Buyer Bases Consumer buyer Organizational buyer Consumption personal Business Setting for buying Buying unit is within the household The setting is within the firm Technical knowledge Average Well trained Contract Not more less facility available Usually more geographically concentrated No.of decision makers No. of peoples are few. Many people are involved in purchase decision . Assignment 3 Q.1 Define the term Market Segmentation? Problem recognition Identification of alternatives Purchase Decision Post purchase behaviour feedback
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Q.2 What is the purpose of market segmentation? Q.3 What are the levels of market segmentation? Q.4 Give an appropriate example of Niche Marketing? Q.5 what is the importance of Market segmentation? Q.6 Give diagrammatic view of Enviornmental influence on Consumer behaviour? Q.7 What are the components of Enviornmental influencers? Q.8 What factors comes under decision making process? Q.9 Write down the componenets of Individual determinants? Q.10 What factors contribute to External environment?
Assignment 4 Case IInd Big Bazaar : Serving the Classes The case let examines how Big Bazaar, a hypermarket from Pantaloon Retail (India) Ltd., emerged as a success story in the Indian retail scenario. Big Bazaar came out with innovative marketing schemes which attracted the middle class consumers to the retail store. The caselet details how Big Bazaar went into tie-ups with some of the manufacturers, which helped the company offer goods at low prices to its customers. Questions for Discussion:
1. "We are not in the business of selling ambience, but in the business of giving the best possible deals to our consumers," said Kishore Biyani, Managing Director, PRIL. How did Big Bazaar offer the 'best possible deals,' and discounted prices to its consumers?
2. Biyani opined that Biz Bazaar was focused on giving the best possible deals to its customers, rather than focusing on the ambience of the store. Is ambience irrelevant for discount stores?
UNIT 3 L27+L28
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COMMUNICATION Communication is a dynamic process that involves the effective transmission of facts, thoughts, feelings, and values. It is a sharing of information and understanding. This process of sharing information is a symbolic interchange, and results in an exchange of meaning and understanding. Communication is an interactive process. The two communication agents involved in the communication process are the sender (S) and the receiver (R). Both the communication agents exert a reciprocal influence on each other through inter- stimulation and response. To conclude, we can define communication as a multidimensional interactive process of sharing common sets of signs, symbols, and language from one person to another so that a suitable response results. According and Newmen and summer : it is an exchange of facts ,ideas ,opinions or emotionsby two or more persons . According to WM Cunning :The word communication describes a process of conveying message fact ,idea attitude opinion from one person to another ,so that they are understood . PROCESS OF COMMUNICATION There are five elements of communication. They include ideation, encoding, transmission, decoding and response. The process of communication begins with ideation, which refers to the formation of the idea or selection of a message to be communication. It consists of the What of communication and is concerned with the content of the specific message to be presented. Encoding is the next step in communication. It is the process of changing the information into some from of logical and coded message. Transmission refers to
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the flow of message over the chosen channel. Transmission confirms the medium selected during the process of encoding and keeps the communication channel free from interference or noise so that the message reaches the receiver without any disturbance. Decoding is the process of converting a message into thought by translating the received stimuli into an interpreted meaning in order to understand the message communicated. The process of decoding involves interpretation and analysis of a message. Decoding in written communication refers to reading and understanding a written message while decoding includes listening and understanding in oral communication. Response is the last stage in the communication process. It is the action or reaction of the receiver to the message, it helps the sender know that the message was received and understood Process Sender Encoding Channel Decoding Receiver ----------------------------Feedback-------------------- Sender Is the person who communicate the message. Encoding Conversion of communicated message in to the symbolic form. Channel Is the medium in which communicated message will travel. Decoding Conversion of symbolic form message in to the users language. Receiver Is the person who receives the communicated message. Feedback Is the response of the receiver & sender. L29
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Marketing communication Marketing Communications (or Mar Com or Integrated Marketing Communications) are messages and related media used to communicate with a market. Those who practice advertising, branding, direct marketing, graphic design, marketing, packaging, promotion, publicity, sponsorship, public relations, sales, sales promotion and online marketing are termed marketing communicators, marketing communication managers, or more briefly as marcom managers. Marketing communications is focused on product/produce/service as opposed to corporate communications where the focus of communications work is the company/enterprise itself. Marketing communications is primarily concerned with demand generation, product/produce/service positioning .
Objectives of marketing communications There are three key objectives of marketing communication 1. Inform : This objective is intented to create and stimulate interest and awareness that is to let targeted consumers know your product or service offering and where to find them. 2. Purusade :This goal aims to convince your customers ,your product or service will providethe best value of your customers ,compared to your compititors. 3. Remind : It remind your customers to take action i.e. to purchase the product. L 30 Integrated Marketing Communications
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According to AMA, It is Planning process designed to assure that all brand contacts are received by a customer or prospect for a product ,service or organization are relevant to that person and consistent over time. Integrated Marketing Communications is a term used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing channels. Online marketing channels include any e-marketing campaigns or programs, from search engine optimization (SEO), pay-per-click, affiliate, email, banner to latest web related channels for webinar, blog, micro- blogging, RSS, podcast, and Internet TV. Offline marketing channels are traditional print (newspaper, magazine), mail order, public relations, industry relations, billboard, radio, and television. Factors contributing to IMC Several shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers: 1. From media Advertising to multiple forms of communication. 2. From mass Media to more specialized (niche) media, which are centered around specific target audiences. 3. From a Manufacturer-dominated market to a retailer-dominated, consumer- controlled market. 4. From general-focus advertising and marketing to data-based marketing. 5.consumer controlled market
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6. From traditional compensation to performance-based compensation (increased sales or benefits to the company). 7. Data base marketing 24/7 Internet availability and access to goods and services. L31 PARTICIPANTS IN IMC 1. Product 2. Price 3. Place 4. Promotion 5. Physical evidence 6. People 7. Process 8. Men 9. Money 10. Machine 11. Market 12. Promotion Mix 13. Sponsorship 14. Ecommerce IMC PROMOTION MIX Advertising - Any paid presentation and promotion of ideas, goods, or services by an identified sponsor. Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion
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pictures, Web pages, banner ads, and emails. Personal Selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and Telemarketing. Can be face-to-face or via telephone. Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions. Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favorable presentation of it in the media. Examples: Newspaper and magazine , articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising, and seminars. Direct Marketing is often listed as a the fifth part of the marketing mix L32 IMC MANAGEMENT AND PLANNING MODEL Review of Market Plan
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Analysis of Promotional Programmed Situation
Analysis of Communication Process
Budget Determination
Develop IMC Programmed
Advertising Direct Mktg Internet Mktg Sales Promotion PR Personal selling
Adv Objective Direct Marketing Objective Internet Mktg Objective Sales Promotion Objective PR Objective Personal selling Objective
Integrate & Implement Markting Communication Strategy
Monitor,Evaluate & Control Mktg Communication Programmed
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L33 Challenges in IMC 1. MNCs use number of ad agencies and promotional tools. 2. Functional areas of company are widen up. 3. Decentralization of companies 4. Different problems with HR of different departments. 5. Cost Management. Promotion Mix
The elements of Mix are : Advertising Sales Promotion Publicity Personal sales Public relations
L34 +L35 Sponsorship Is an process of supporting an act or an event ,by providing money or other resources that is of value of the sponsored event .This is usually in return of advertising space at the event or as a part of publicity for the event. There are many kinds of sponsorship,Television , Radio, sports ,Arts . Types of Sponsorship There are currently three kinds of sponsors in the MG Taylor network: 1. A sponsor is the client's principal point of contact between the facilitator and the client for a Design Shop. 2. A sponsor is also a current Knowledge Worker who introduces a new Knowledge Worker to the network. 3. The third is a more formal sponsor of a Knowledge Worker in the network and plays a more formal role. This sponsor is someone who is a Speaker or a
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Journeyman and must be in the pool of people who are called on to be Process Facilitators or Event Facilitators as well. He or she should have a good sense of the philosophy of MG Taylor, the Modeling Language, and much practical experience in the execution of MG Taylor's work.
POP (Point of Purchase) POP (Point of Purchase), in Japanese is a mono-weight typeface for the Japanese Kanji writing system. It is similar to both sans-serif and script-based typefaces in the Latin alphabet. It is a place where the act of purchase takes place .The various features of a product ,its unique selling propositions highlights its major The POP typeface is designed to effect the look of handwritten Kanji, as though produced by a felt-tip marker. Its loose, casual structure makes it similar to casual scripts in the Latin alphabet. Supportive communication At times of crisis Supportive communication is the recommended communication style. This implies communicating empathy, concern, respect and confidence in the abilities of the affected person, as well as practical information .
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Learning Objectives 1. Recognize the values that accompany the most effective communication style 2. Communicate effectively in challenging situations 3. Describe communication elements that support resilience and self-help 4. Be prepared to work with groups of people in a community setting 5. Understand when and how to refer people to other professionals or organizations Communication Values Cultural competence Empathy Respect Genuineness Positive regard Non-judgmental Empowering Practical Confidentiality Ethical conduct
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L36 Role of Ecommerce in Marketing communication Definition ECOMMERCE Electronic Commerce, commonly known as (electronic marketing or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. Role in Marketing Communication The use of commerce is conducted in this way, spurring and drawing on innovations in Electronic Funds transfer , supply chain management , Internet marketing ,Online Transactions processing, Internet marketing , Online Transactions processing , Electronic data interchange (EDI), Inventory management systems, and automated data collection systems. Marketing can be considered as one of the most important element underpinning successful business creation (1994). Perhaps because of its complex applications, marketing has been defined in a variety of ways (1988). The marketing concept was first promulgated in the late 1950s (1990). The importance of marketing concept incorporates oft-repeated elements such as: customer orientation;
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integrated marketing efforts; and resultant profitability (1990). In terms of managerial perspective in marketing, (1972) is the sole pioneer as he adopted the concept, when he proposed a generic concept of marketing concerned with how transactions are created, stimulated, facilitated, and valued.
Assignment 5 Q.1 what do you understand by marketing communication? Explain its objectives Q.2 Write short note on CONSUMERISM ? Q.3 What is Organizational Buying behavior Q.4 What are different types of buying situations ? Q.5 Define the term communication for management Q.6 what are essentials of communication ? Q.7What is process of Management ? Q.Discuss IMC management and planning model Q.9 What are different types of communication. Q.10 Explain Promotion Mix and Sponsorship ? Assignment 6 Case IIIrd The Gujarat Co-operative Milk Marketing Federation - Milk Sourcing Initiatives The Gujarat Cooperative Milk Marketing Federation (GCMMF), located in Gujarat, India, collects and processes on an average about 5.9 million liters of milk per day from various dairies across the country. The caselet explains how GCMMF conducts this massive task effectively using the latest Information Technology tools. The various tools they use like the Automatic Milk Collection System Units (AMCUS), Amul ERP Online System, and Geographic Information System (GIS) are discussed in detail. Questions for Discussion: 1. The purchasing of milk done by Gujarat Cooperative Milk Marketing Federation (GCMMF) is
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a good example of straight rebuy. Describe the salient features of straight rebuy, with reference to the purchases of GCMMF.
2. In 2004, GCMMF started procuring milk from states outside Gujarat. Identify the benefits which GCMMF expected to obtain from this initiative.
Unit- 4 L 38 Advertising Management an Over view Advertising : Advertising is a form of communication used to persuade an audience (viewers, readers or listeners) to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common. Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or new media such as websites and text messages. The term advertising is derived from the original Latin word advertere which means to turn the attention . Acc . to American marketing association it is any paid form of non- personal presentation ideas goods or services by an identified responses. Advertising Management is a career path in the advertising industry. Advertising & promotions managers may work for an agency, a PR firm, a media outlet, or may be hired directly by a company to develop branding for the company's product or service. This position can include supervising employees, acting as a liaison
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between multiple agencies working on a project, or creating and implementing promotional campaigns.
Meaning Advertising is a message paid for by an identified sponsor and delivered through some medium of mass communication. Any act that turns the attention to an article or a service as an idea might be well called as advertising. Advertising is a persuasive communication .It is not neutral ,it is unbiased,it says Im going to sell you a product or an idea . Benefits of Advertising I. Benefits to consumers II. For middle men III. For sales men IV. For society V. It uplifts the living standard L39 Nature and Scope of advertising Nature
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Before launching any kind of advertising campaign, it is important to understand your potential customers. They don't sit at one place every time. The nature of advertising is persuading and attracting bees to the flower you want to be pollinated. Or in other words, attracting customers that bring in money for exchange of the product or service . Nature of advertising include : advertising is distinguished from other forms of promotion as follows it has a verbal and/or visual message the sponsor of the message is identified delivery is through recognizable media there is payment by the advertiser to the media for carrying the message advertisers are increasingly being able to reach specific audiences with tailor-made messages
Scope of Advertising It is mass communication process It is informative in action It is persuasive act It is competive act It is paid activity
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It has an identified sponsor L40 Advertising and other Promotional tools Promotional Tools
Advertising Direct Interactive Sales Publicity Personal selling Marketing Marketing Promotion Promotion has been defined as the co ordination of all sellers initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. The basic tool used to accompolish an organizations communication objectives are often reffered to as the promotional mix . Direct marketing is much more than direct selling telemarketing and direct responses ads through direct mail.It requires direct a good data baseof potential customers. Interective marketing thousands of companies have developed websites to promote their product and services by providing current and potential customers with information as well as to entertain and interect with consumers. Sales Promotion It is generally defined as those marketing activities that provide extra value or incentive to the sales force, the distributors or the ultimate consumers. Publicity refers to non personal communication regarding an organization ,product ,service or idea not directly paid for.
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Public relation PR is defined as the management function which evaluates public attitudes identifies the policies and procedures of an individual or organization with the public interest and executes the programme of actionto earn public understanding and acceptance. L 41+L42 Role of advertising in promotion mix 1.Communication with consumers 2.Persuasion 3.Contribution to economic growth 4.Catalyst to change Advertising process
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Reference: sitemetrics.com.au
The process of Advertising involves the following steps a) Study of target customers b) Study of marketing environment c) Defining advertising objectives d) Determining advertising budget e) Selecting advertising message f) Selecting advertising appeal g) Selecting media ,media mix ,media -vehicle h) Determining media scheduling i) Designing advertising copy
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j) Executive of advertising k) Evaluation of advertising effectiveness
L 43 Customer and competitor analysis Competitor analysis in marketing is an assessment of the strength and weakness of consumers and potential competitors. This analysis provides both an offensive and defensive context through to identify opportunity and threat. Customer analysis allows organization to identify and target the most profitable with marketing campaigns directed at various distribution channels. Competitive Analysis The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid. Companies for analysis : 1. Competitor-centered companies 2. Customer-centered companies 3. Market-centered companies
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Process of analysis 1. Firms face a wide range of competition 2. Be careful to avoid competitor myopia 3. Methods of identifying competitors: 4. Industry point-of-view 5. Market point-of-view 6. Competitor maps can help 7. Determining competitors objectives 8. Identifying competitors strategies 9. Strategic groups 10. Assessing competitors strengths and weaknesses 11. Benchmarking 12. Estimating competitors reactions
L44 +L 45 STP STRATEGIES FOR ADVERTISING Market segmentation
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Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. The purpose for market segmentation is conducted for two main issues. First, a segmentation allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of resources. Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position. Segment Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Four commonly used criteria are used for segmentation, which include: Geographical (e.g. country, region, city, town, etc.) Psychographic (i.e. personality traits or character traits which influence consumer behaviour) Demographic (e.g. age, gender, socio-economic class, etc.) Behavioural (e.g. brand loyalty, usage rate, etc.) Targeting Once a segment has been identified, a firm must ascertain whether the segment is beneficial for them to service. The DAMP acronym, meaning Discernible, Accessible, Measurable and Profitable, are used as criteria to gauge the viability of a target market.
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The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of differentiation exist, which are commonly applied by firms. These are: Undifferentiated - Where a company produces a like product for all of a market segment. Differentiated - In which a firm produced slight modifications of a product within a segment. Niche - In which an organisation forges a product to satisfy a specialised target market. Positioning Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Positioning concerns how to position a product in the minds of consumers. A firm often performs this by producing a perceptual map, which denotes products produced in its industry according to how consumers perceive their price and quality. The positioning involves: 1. Identifying the business's direct competition 2. Understanding how each competitor is positioning their business today 3. Documenting the provider's own positioning as it exists today (may not exist if startup business) 4. Comparing the company's positioning to its competitors' to identify viable areas for differentiation
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5. Developing a distinctive, differentiating and value-based brand positioning statement, key messages and customer value propositions. L46 +L47 Campaign Planning According to Dunn and Barban An advertising campaign includes a series of ads ,placed in various media that are designed to meet objectives and are based on an analysis of marketing and communication situations, Step taken are:- a. Appraise advertising opportunity b. Analyse and definethe target market c. Set advertising objectices d. Determine advertising budget e. Decide media and creative strategy f. Create ad, pre-test and realease ads
Message Creation Create message involves a substantial advertisement message.It emphasizes the right type of advertising and draws on writing talent.The write should be good at spelling grammer ,punctuation.He should be familiar with current idiomatic expressions .He should be fully aware of marketing environments and consumer learning abilities and selective processes . The message is often considered as the most vital component in the communication process . the message is the thought , idea, attitude, image or other information that the advertiser wishes to convey to the target audience
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Elements of creative strategy: Strategic objective Target audience Creative Promises Back up claims Creative style. In developing a message consider 3 Cs Customer Target audience Company-Product Compititive positioning Creating an image or an identity
Customer Demographic Characteristics (e.g., age, sex) audience physical profile Psychographic Characteristics (e.g., activities, interests, opinions) how they live and reasons for their behavior Decision Process opportunities available to influence product choice Company a)Distinctiveness of Attributes
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If not distinctive audience not interested in product info message should not stress on attributes (b) Product Involvement- If high involvement, product info critical stress on product attributes. Compititive positioning The art and science of fitting the product or service to one or more segments of the broad market in such a way as to set it meaningfully apart from competition . Strategies Attribute - Set apart by attribute or benefit offered Image - Similarity among brands Use or application Dominate - some aspect of usage Product user e.g., Johnson & Johnson shampoo repositioned toward adults
L48 Copywriting Copywriting is the use of words to promote a person, business, opinion or idea. Although the word copy may be applied to any content intended for printing (as in the body of a newspaper article or book), the term copywriter is generally limited to such promotional situations, regardless of media (as advertisements for print,
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television, radio or other media). The author of newspaper or magazine copy, for example, is generally called a reporter or writer or a copywriter. Thus, the purpose of marketing copy, or promotional text, is to persuade the reader, listener or viewer to act for example, to buy a product or subscribe to a certain viewpoint. Alternatively, copy might also be intended to dissuade a reader. Copywriting can appear in direct mail pieces, taglines, jingle lyrics, web page content (although if the purpose is not ultimately promotional, its author might prefer to be called a content writer), online ads, e-mail and other Internet content, television or radio commercial scripts, press releases, white papers, catalogs, billboards, brochures, postcards, sales letters, and other marketing communications media. Content writing on websites is also referred to as copywriting, and may include among its objectives the achievement of higher rankings in search engines. Known as "organic" search engine optimization (SEO), this practice involves the strategic placement and repetition of keywords and keyword phrases on web pages, writing in a manner that human readers would consider normal.
L49 ROLE OF CREATIVITY IN COPY WRITING MEDIA PLANNING Most copywriters are employees within organizations such as advertising agencies, public relations firms, web developers, company advertising departments, large stores, marketing firms, broadcasters and cable providers, newspapers, book publishers and magazines. Copywriters can also be independent contractors
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freelancing for a variety of clients, at the clients' offices or working from their own, or partners or employees in specialized copywriting agencies. A copywriter usually works as part of a creative team. Agencies and advertising departments partner copywriters with art directors. The copywriter has ultimate responsibility for the advertisement's verbal or textual content, which often includes receiving the copy information from the client. (Where this formally extends into the role of account executive, the job may be described as "copy/contact.") The art director has ultimate responsibility for visual communication and, particularly in the case of print work, may oversee production. Either person may come up with the overall idea for the advertisement or commercial (typically referred to as the concept or "big idea"), and the process of collaboration often improves the work. Copywriters are similar to technical writers and the careers may overlap. Broadly speaking, however, technical writing is dedicated to informing readers rather than persuading them. For example, a copywriter writes an ad to sell a car, while a technical writer writes the operator's manual explaining how to use it. Because the words sound alike, copywriters are sometimes confused with people who work in copyright law. These careers are unrelated. Media planning is a series of decisions involved in delivering the promotional message to the prospective purchaser and or users of the product or the brand. Media planning involves a series of decisions concerning media objectives and media strategies to accopmplish the advertising objectives.
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L50 Testing of the advertising effectiveness 1.Tomake sound future decisions . 2.To impress upon the top management. 3.To have a clear breakup picture. 4.To know the point of saturation. 5.To keep in touch with the new trends. Attributes Advertising effectiveness: 1.Brief: It should be brief and yet effective 2.Clear :is one which is easily and quickly read and grasped by the readers. 3.APT: that matches with the needs and counts of the prospects. 4.Personal :is specific where generality is dismissed to do away with ambiguity. An advertisement measurements is adopted both before and after an advertisement is launched .The method of measuring of sales and communication performance the time of measurement and methods of measuring. Reasons for effectiveness: I. To make sound future decision II. To impress the top management III. To have a clear breakup picture. IV. To know the point of saturation. V. To keep in touch with the new trends.
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L51+L52 Preparation and Choice of Methods of Advertising Budget Advertising Budgets Is the plan projecting how much money we have at our disposal and how we are going to spend to get the best result over the coming year or years. Budget is one that divides the amount specifically to various activities and these specific figures make an advertising appropriation. Preparation of Advertising budget The advertising budget is the statement of the advertising plan in financial terms . It is the allocation of the available funds to various advertising functions . The budgetry process involves : 1.Budget Prepration 2.Budget Presentation 3.Budget implementation 4.Budget control Copy elements 1. The headlines 2. The sub heads 3. The body copy
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4. Captions the burlb 5. Boxex and panels 6. Slogans ,logo types and signatures. Layout The Layout is the visual expression of the idea of the creator of an advertisement .The visual composition of an advertisement is the layout. It is the working drawing or the blue print of an expression. A layout is t he format in which various elements of the advertisements are advertisements. Functions of Layout 1.It organizes the elements 2.It brings together copyrighter and art director. 3.It enables the advertisement to visualize its future advertisement. 4. It acts as a guide to the copy specialist. Media Objectives Developing media objectives is the initial step in developing a strategy .The media objectives are the goals to be reached through the proper use of media resources . The proper use of media objectiveis to introduce a product build a high level of product awareness and promote a trail use of it among the primary target audience. Problems in Media Plannig Insufficient information
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Insufficient terminologies Time pressure Difficulty measuring effectiveness. Media of advertising
L53 Ethical and Social issues: Advertising is the subsystems of economic systems of the nation .A free economy is the compitive economy where consumer is the king. The Ethical issues are: Awareness of the product Focus on consumerism Eco friendly advertisement Media of Advertising Indoor and out door media Print media ,broad cast media Posters, Painted displays,Electrical sign Travelling displays. Direct Advertising Media Post card evvelopes enclosures Broad cast , broad sides booklets catalouges sales letters ,gift novelties. Display Advertising Display windows counter windows showrooms and show cases Exhibition and trade fair.
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Effect on the value of product and services Effect on prices Effect on consumer demand and consumer choice Effects on competition.
The social issues are: Deceptive Advertising Harmful effects Confuses on the people Forceful selling Media Misuses.
L54 Management of advertising Agencies An ad agency is an independent agency set up to render specialized services in advertsising in particular and in marketing ingeneral. Advertsing is the core of advertising profession and industry .It is a unique type of business organization specializing in creative line of advertising providing counsel related to advertising . Types of advertising agencies Ad agencies come in all sizes and include everything from one or two-person shops (which rely mostly on freelance talent to perform most functions), small to medium sized agencies, large independents such as SMART and TAXI, and multi-
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national, multi-agency conglomerates such as Omnicom Group, WPP Group, Publicis, Interpublic Group of Companies and Havas. 1. Full service agency 2. Account service 3. Imaginative creation 4. Value system.
Functions of Advertising agency 1.Functions for the clients 1.It replaces the advertsising department . 2.It provide expert view point 3.It brings economy and excellency 4.It shares its reach experience 2.Functions for the media owners 1.It assures risk free business. 2.It take away the sales job. 3.It undertakes the advertising scheduling 4.It slashes down the production cost.
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L55 Role of Advertising in Natural development: Making the general aware public aware about there rights. Spreading message for social welfare. Green India safe India Pulse Polio Safeguarding the interest of general public. Communication with the customers Persuasion. Contribution to economic growth. Catalyst to change. Creating Value systems.
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Assisgnment 7 Q 1 .What do you understand by advertising ?explain its nature. Q.2 Discuss Nature and objectives of advertising ? Q3.What are the functions of advertising ? Q.4 Explain POP ? Q5.what are the typesof advertising? Q. 6 Discuss various participants in IMC? Q.7 Explain Copy writing and role of creativity in copy writing? Q. 8 Briefly describe STP ? Q9.Explain various ethical and social issues in advertising? Q.10 Elaborate the term Advertising Budget ? Assignment 8 Case IVth HSBC worlds local Bank
The caselet 'HSBC - The Local Bank of the World' explains the factors which led to the consolidation of the various banks owned by the HSBC Group under a single brand name - HSBC. It also looks into the change in HSBC's advertising strategy after the consolidation which led to the introduction of 'The Local Bank of the World' tagline in its advertisements. The impact of these changes on HSBC's brand name is also explained.
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Issues:
1The impact of 'one size fits all' strategy followed by many MNCs 2The need for a unified brand name 3 The importance of understanding local culture for an organization. Key words:
HSBC, Banking, Local Culture and The World's Local Bank. Questions for Discussion:
1. What are the initiatives taken by HSBC to target consumers across various cultures?
2. What were the drawbacks of the 'think, globally, act locally' strategy adopted by William Purves? What prompted HSBC to re-brand?