Professional Documents
Culture Documents
At the end of this module the learning outcomes are What is the relevance of marketing communication? What are the elements of marketing communication mix? What is the purpose and relevance of each element of marketing communication mix?
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PROMOTION IN MARKETING
Suggested readings 1. Marketing management by Kotler, chapter 17, 18 & 19, 13th edition
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AIDS prevention campaign in West Bengal was a unique integrated mass media campaign
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Word-of-Mouth Marketing
Person-to-person Chat rooms Blogs
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Promotion - How do we make customers aware about the product - How do we communicate? - Problem of integrated marketing communications What is the communication process
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Communication process - Interactive process - Between company and its customers Every aspect communicates - Product styling - Price - Packaging - Sales personnel dress and manners - Channel partners behavior - Office dcor - Sales personnel business card - Stationery
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Customer wants to buy computers. What will he do? - Talk to others - See ads on television - Read articles - Surf internet - Go to computer shop - See a live demonstration Marketers need to understand which experiences and impressions will have the most influence at each stage of the buying process.
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Communication issues Role of the marketer is to send his/her message through to the receiver (customer) Customer may not receive the message for three reasons
Selective attention Selective distortion Selective retention
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Selective attention - How many messages do you get exposed to everyday - Over 100 (few 100s) - How ? - Newspaper, internet, banners, word of mouth, books etc. - Do you remember all? - No, why? - Not possible to recall so many messages - Which one will you recall - An ad with bold headline Win a Mercedes today 15 - Will grab your attention
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Selective distortion - Consumers will hear what fits into their belief system - Consumers often add something that are not there - Not notice other things that are there - Message gets distorted because the consumer adds or ignores certain things in the message
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Selective retention - How many ads you remember seen in last one year - Only a fraction - You recall only those message which you feel are positive - Reject the ones which according to you are negative
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Message Source
Celebrity Characteristics Expertise Trustworthiness Likeability
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Expert channels
Social channels
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Advertising - Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor - Is done by Commercial organizations Government Non-profit organizations - Direct messages to target public
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Advertising can be used to 1. Long term image - Ads of Coke 2. Trigger quick sales - Buy one, get one free 3. Geographically dispersed buyers - Lifebuoy customers o Rural o Semi-urban o All over India 4. Brand preference 58 - Surf comparing ordinary washing powder with surf
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Advertising can be used to 5. Removing misconceptions - AIDS o Causes o Misconceptions o Remove o Present right picture
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Who carries out advertising? - Advertising department within the marketing department - Most of the work carried out by an outside advertising agency
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Developing an advertising program Five Ms of advertising 1. Mission What is the purpose of advertising 2. Money How much can be spent? 3. Message What message should be sent? 4. Media What media should be used? 5. Measurement How should the results be measured?
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Mission - Sales goals - Advertising objectives Money Factors to consider: - Stage in product life cycle - Market share and consumer base - Competition and clutter - Advertising frequency - Product substitutability
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Message - Message generation - Message evaluation and selection - Message execution - Social responsibility review
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Media - Reach, frequency, impact - Major media types - Specific media vehicles - Media timing - Geographical media allocation Measurement - Communication impact - Sales impact
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Sales promotion Consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
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Sales promotion Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.
Examples - Samples - Cash refund - Prices off - Prizes - Free trials - Cross promotions
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Sales promotions examples 1. Samples Dominos provide free pizzas when they start outlets. 2. Cash refund Surf saying that if you do not like the product, entire money will be refunded 3. Prices off Hindustan times Scratch an HT sticker. You get Rs 90/- off on Dominos pizza 4. Prizes Hindustan times buy HT, win a Santro
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Sales promotion who carries out - Manufacturers - Distributors - Retailers - Non-profit organizations
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Types of sales promotion 1. Consumer promotion - Targeted on end consumers 2. Trade promotion - Targeted on intermediaries and channel partners 3. Business promotion - Targeted on business / institutional consumers
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Purposes of sales promotion - Introducing new products - Unloading accumulated inventory - Overcoming seasonal slumps - Getting new accounts - Retrieving lost accounts - As a support and supplement to the advertising effort - As a supplement and support to the salesmens effort - Persuading marketing channel to buy more / increase the size of the orders.
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Events and experiences Sponsoring events Provide companies Opportunities to obtain wider exposure Influence attitudes towards brands
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BCCI Kit sponsorship by Nike Team sponsorship by Sahara Media rights to telecast matches Association with popular sport in India Gets visibility amongst youngsters
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Public relations(PR) Involves a variety of programs designed to promote or protect a companys image or its individual products
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Functions of public relations 1. Press relations Presenting news and information about the organization in most positive light 2. Product publicity Sponsoring efforts to publicize specific products 3. Corporate communication Promoting understanding of the organization through internal and external communications
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4. Lobbying Dealing with legislators and government officials to promote or defeat legislation and regulation 5. Counselling Advising management about public issues and company positions and image. This includes in the event of a product mishap.
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Public relations examples 1. Dhara educating customers Mustard oil problem 2. Maruti promoting road safety week 3. McDonalds denying use of beef in India 4. Ranbaxy promoting green Delhi
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Personal selling Face to face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders
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Personal selling - Is the most effective tool at later stages of the buying process. - Particularly in building up o Buyer preference o Conviction o Action
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Personal selling Three distinctive qualities 1. Personal confrontation Immediate and interactive relationship between two or more persons 2. Cultivation - Encourages personal relationship - Informal 3. Response - Buyer under obligation 82 - Listen to sales talk
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Direct marketing Is the use of consumer-direct channels to reach and deliver goods and services to customers without using marketing middleman
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Can reach through Direct mail Catalog marketing Telemarketing Mobile devices Web-sites
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Direct marketing characteristics 1. Non public Message is addressed to a specific person 2. Customized Message can be prepared to appeal to the addressed individual 3. Up-to-date A message can be prepared very quickly 4. Interactive The message can be changed depending on the persons response. 92
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Benefits direct marketing Fun of home shopping Online marketing Convenient Hassle free Saves time Large selection of merchandise Compare prices
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Benefits direct marketing
Marketers benefit Focus Find any types of groups Diabetic list Obese list Gymkhana club members list Airtel subscribers list Citibank card members list One year old babies list
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Benefits direct marketing
Build a continuous relationship Can reach prospects at the right moment Can test alternative medias Find out which is the most effective media Strategy less visible to competitors
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Interactive Marketing Latest channels are electronic Internet provides opportunities with greater Interaction individualization
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Interactive Marketing Advantages
Can send tailored messages Reflect their interests Effective for reaching during the day Young, high-income, high-education customers total online media consumption exceeds TV
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Interactive Marketing Disadvantages Can actively screen out most messages Bogus clicks generated Consumers can misuse
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Interactive Marketing Maruti Dil Se program Tap nonresident Indian market Created marutinri.com NRIs can purchase and gift Maruti cars Gives multiple payment options Testimonial section Existing customers sharing their experiences
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Word of Mouth Facebook Have become important force in B2B and B2C marketing Social networks Key aspect Word of mouth Consumers talk about brands everyday
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Word of Mouth Organizations increasingly understand the power of word of mouth Can be very effective for smaller businesses for whom customers may feel a more personal relationship
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Buzz and Viral marketing Buzz marketing Generates excitement Creates publicity Conveys new relevant brand-related through unexpected.
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Viral Marketing Encourages consumers to pass along company-developed products and services or audio, video, or written information to others online.
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Viral Marketing P&G 225000 teens enlisted in Tremor 600000 mothers in Vocalpoint Certain individuals want to learn about products, receive samples and coupons Share their opinions with companies Talk up their experiences with others
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