Marketing Communications(1)

By Grace Dixon,2014-01-20 21:33
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Marketing Communications(1)

Marketing Communications


     Establishes an image, such as prestige, discount or innovative, for the company

    and its goods and services

     Communicates features of goods and services

     Creates awareness for new goods and services

     Keeps existing goods and services popular

     Can repositions the image or uses of faltering goods and services

     Generates enthusiasm from channel members

     Explains where goods and services can be purchased

     Convinces consumers to trade up from one good or service to a more expensive


     Alerts consumers to sales

     Justifies prices of goods and services

     Answers consumer questions

     Closes transactions

     Provides after sale services for consumers

     Places the company and its goods and services in a favorable light relative to


Elements of promotion:

Advertising, Personal Selling, Publicity, Sales Promotion and Packaging


    1) Make the consumer conscious of the difference between the objectives and the

    present position.

    2) Clarify the nature of this difference in his mind.

    3) Increase the magnitude of the differences in his mind

    4) Provide some urgency about eliminating the difference.

    5) Make him feel more certain that a difference does exist now or in the future.

Brand awareness:

1) Increase the breadth of awareness.

    2) Increase the intensity of awareness.

    3) Improve the timing of initial awareness in relation to purchase

    4) Increase the duration of awareness

    5) Improve the quality of the prospects made aware.

    6) Improve the closeness of association between the need felt and this brand as a

    solution to it.

    Increase product knowledge:

    1) Increase the consumer‟s total knowledge about the brand. 2) Increase the ratio of favorable knowledge to unfavorable knowledge about this brand.

    3) Improve the accessibility of this knowledge in the consumer mind

    4) Improve the accuracy of knowledge about the product in the consumers mind

    (eliminate unfavorable myths.)

    5) Improve the appropriateness of consumer knowledge especially on unique points of

    product differentiation and hidden qualities.

    6) Improve the credibility of consumer knowledge.

Increase Company image:

1) Progressiveness

    2) Honesty

    3) Reliability

    4) Competence

    5) Friendliness

Improve Brand image:

1) Improve consumer attitudes towards the product attributes (design capacity, expense,

    quality etc.) of the brand.

    2) Improve customer attitudes towards the personality attributes (age, status, gender etc.)

    of the brand.

Increase brand preference:

1) Increase the breadth of preference (the number of consumers that prefer the brand).

    2) Increase the intensity of preference (the strength of preference).

    3) Extend the time period of preference.

Budgeting Techniques:

1) Arbitrary:If the current year‟s promotion budget is Rs. 1, 20,000 and the next year is

    expected to be a good year, the decision is taken to increase funds allocation by 10 to

    15%. The allocation will stand between Rs. 1, 40,000-1, 50,000 for the next year.

    2) Percentage of Sales: If the present promotion funds percentage is 10%, for every sale worth Rs.100, Rs.10 is spent on promotion. Thus, if next year‟s sales are forecast to be

    Rs.1 crore, the promotional budget will be fixed at Rs.10 lakhs.

3) Competitive parity: If the current year‟s promotion budget is Rs.1, 20,000 and the

    closest competitor is expected to increase its promotion budget by 4%, the firm too

    follows this strategy and establishes the budget allocation at Rs.1, 24, 8000 next year.

4) All you can afford: If a firm has a total marketing budget of Rs. 10 lakhs, out of

    which Rs.5,00,000 are allocated for distribution,Rs.4,00,000 for product testing, and Rs.30,000 for consumer surveys, then remaining Rs.1,20,000 is left for advertising, personal selling, and sales promotions.

5) Objective and task: If the firm has three goals for next year:

    (i) increase sales of brand A by 5% (ii) introduce brand B and attain recognition by 15% of the target market, (iii) improve positive rating of the company from 60 to 75%, the promotional tasks and tools needed to achieve these goals will be allocated separately.

Types of media


    ?Direct Mail


    ?Point of purchase

    ?Out door

    ?News paper






Media Planning

?When? (the trinity of ad, publication)

    ?Which? (the selection of the media)

    ?How? (the coordination in media planning)

    ?How much? (the budgeting of ad, resources)

Selection of Media

?Selection of broad media classes

    - Involves comparison of broad media classes such as news papers, magazines, radio, TV or others.

    -Audience size is one of the major factors used in comparing the various media classes.

?Selection of Media within classes

    If magazines are recommended, which magazines

    If TV is recommended, then

    Network of spot TV?

    If network, which program(s)

    If spot, which markets?

Media use decisions broadcast

What kind of sponsorship (sole, shared, participating, or other)

    What levels of reach and frequency will be required?

    Placements of spots; in programs or between programs?

Setting Media Objectives

There are broadly five elements in media objective statement:-

    Target Audience-defined in relevant terms

    Geographic concentration

    Timing considerations


    Creative requirements

Media selection: A process

?Media selection is highly involved task for or marketer.

    ?There could be no single best media strategy that would apply to different situations. ?The attempt is always to find a fit between media choice & market preferences. ?The difference in choice approaches necessitates a change in media mix.


    Directory Advantage Product Characteristic

    Direct Mail Advertising Advertising Objectives

    Radio Advertising Cost

    Point of Purchase Advertising Advertising, by competition

    Out door Advertising Media selectivity

    Magazine Advertising Media coverage

    News Paper Advertising Media Availability

    Transit Advertising Media restrictions

    Screen Advertising Media flexibility

    TV Advertising Media life

    Specialty Advertising Media acceptance

Developing Media Strategy

Media strategy centers on following elements:

?Media mix

    ?Usage media

    ?Geographic allocation


    Functions & Structure of an Advertising Agency The functions & Structure go together

    ? Account Servicing

    ? Market Planning & Research Services

    ? Media Planning Services

    o Planning

    o Media buying

    ? Creative Services

    o Copy

    o Art

    ? Production Services

    o Relating to television

    o Relating to print

    o Other

    ? Finance, Administration and Accounts

The Agency-Client Relationship and Productivity

    ?Weilbacher in „Auditing Productivity‟ has listed some factors in advertiser-agency

    relationship hindering productivity.

    QUALITY OF STAFF FACTORS -Too many unproductive/unnecessary meetings

    -Not giving agency enough lead time

    -Unwillingness to listen to other‟s point of view -Too much “change for change‟s sake” -Failure to operate with agreed upon strategies

    ORGANISATIONAL FACTORS -Too many levels of approval

    -Too many important decisions made by juniors

    -Unnecessary duplication of agency work at company


    - Client unwilling to comment sufficient funds

    -Too much personnel turnover

    -Not enough senior management involvement

    COMMUNICATION FACTORS Failure to follow established lines of communications

Advertisers periodically review and evaluate the agency’s performance

-Does the agency organize itself effectively to work with the advertiser?

    -Does it staff the account with compatible & productive people?

    -Does the agency‟s creative and media work respond to the needs & perceptions of the client organization?

    -Is there continual bickering about and acerbity in the presentation of agency‟s work?

Preparing the campaign

    It is important for advertisement agency to devote some time to understand the product & the market. There are 10 things to know:

The industry

    The company

    The product or service

    The sales history

    The share of the market

    The market

    The distribution

    The priority policies

    The competition


The Advertising Tasks

?Setting Ad. Objectives

    ?How much to spend

    ?Where and how often to spend the budget

    ?When to spend

    ?Deciding what to say

Deciding what to say

    Make the creative strategy fit the marketing plan

?Keep your objectives reasonable

    ?Make your strategy easy to use

    ?Be single minded

    ?State a business objective

    ?Decide where your business is going to come from

    ?Understand your target audience

    ?Make a meaningful promise

    ?Set yourself apart

    ?Give your product a distinctive

    ?Advertise what is important, not what‟s obvious

    ?Think ahead

    ?Keep your strategy up-to-date

    ?Don‟t change your strategy without good reason

    ?Put the strategy in writing

    ?Have a better product

Message Design & Positioning

    Thought process/research is necessary for this work:

What kind of product is it? Identify generic product category

    Who are the people going to use it? Identify the segment.

    What are the special attributes of the product and how the consumer going to benefit?

    Who are the competitors? What is their promise?

    On what occasions & how frequently the product could be used? Identify prospects


    How is the product different from the other in the same product category? Or it is a new

    product intrinsically.

    What would you like your consumer to perceive this brand as? What position should it


Message Development:

    ? To be notices, to be scan and heard in the crowd, in addition to the difficult task

    of persuading the customer to act favorably.

    ? An effective ad emerges from a powerful idea

    ? The idea need not be only strong-but it should also be unique. Capable of standing

    out in the crowd.

    ? Translating the idea into a language to which the consumer is likely to respond

    best. This requires a lot of creativity.

    ? Creativity is the quality of being able to produce original work or ideas by human

    intelligence and imagination in any field.

Important Elements used to design & Develop Messages for Print media

Size & Shape

    Head line


    Body Copy



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