Unit 12 Promotion Management Managing Non Personal

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Promotion Management: Managing Non Personal

Dr. Smita Choudhary

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Introduction

Integrated marketing communication Communication development process

Budget allocation decisions in marketing communications

Introduction to advertising

Fundamentals of sales promotion

Basics of public relation

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Introduction

A company must communicate the attributes of the product to the

customers.

If the company does not do so, even a good product with better

distribution and affordable price will fail.

Communication is defined as any act by which one person gives to orreceives from another person information about that persons needs,

desires, perceptions, knowledge, or affective states.

Communication can be in the following forms

Intentional or unintentional

Conventional or unconventional signals

Linguistic or non-linguistic forms

Spoken or other modes

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Marketing communication is the process of providing the information to the

consumers about the marketing mix either through personal channels (direct

selling, direct marketing, etc.) or through non personal channels (advertising, sales

promotion, etc.). Both personal and non personal channels comprise the

marketing communication mix or promotion mix. Promotion mix: This is a mixture of advertising, sales promotion, public relation,

personal selling and direct marketing.

Advertising: It is a paid form of non personal presentation and promotion of ideas,

goods, or services. For example print ads, radio, television, brochures, posters,

banner ads, etc.

Personal selling: It is the type of promotion mix that helps and follows up

prospects to purchase a good or service through use of an oral presentation. For

examplesales presentations, sales meetings, sales training, etc.

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Sales promotion: It is incentives designed to encourage the purchase or sale of a

product, usually in short term. For example coupons, sweepstakes, contests,

product samples, rebates, etc.

Public relations: This is the form of non-paid non-personal encouragement ofdemand for a product, service, or business unit by providing important news or

presentations about it in the media. For example newspaper and magazine

articles/reports, TVs and radio presentations, charitable contributions, speeches,

issue advertising and seminars.

Direct marketing: It is direct interaction with the customers by using telephone,

online mediums.

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Integrated Marketing Communications

Integrated marketing communication is a planning process

designed to assure that all brand contacts received by a

customer or prospect for a product, service, or organization

are relevant to that person and consistent over time.

---- American Marketing Association

Objectives of Integrated Marketing Communication (IMC)

The objective of integrated marketing communication is to

plan, develop, execute and evaluate communication with

organizationsstakeholders.

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Reasons for the growth of Integrated Marketing

Communication (IMC)

The growth of innovative promotional tools and the need to integrate

them.

Specialized media channels for niche target customers.

Growth of retailer dominated market and passing of control from

manufacturer to the customer.

Growth of data base marketing.

Wider geographical coverage through internet.

Higher accountability and performance linked compensation systems.

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Communication Development Process

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1. Preparing target customer profile

The first step towards effective marketing communication starts with

indentifying the target customer for whom the communication is

developed. At this stage the company prepares the target customerprofile.

For example target customer profile of Exide Industries is

Customer characteristics Description

Type of customer Individual

IncomeUpper middle class and upper

class.

Media exposure Print ( English magazines, dailiesand journals)

Occupation Salaried or business class.

Need of the product OEM of a car

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2. Identifying promotion objectives

Target customer profile gives information about the customersreadiness

to purchase the product.

The customer may be in any of the six stages of hierarchy of effects.

The six stages are awareness, knowledge, liking, preference, conviction

and purchase.

Every company wants to bring its customers to purchase stage. For this it

uses different promotional programs.

a) Awareness: Marketer creates new products but the awareness about

these products is very low. The purpose of the advertisement is to create

awareness about these new products. For example Reebok.

b) Knowledge: At this stage, the target audience do not have complete

knowledge of the product. Marketer explain the product and itsadvantages to the target customer. For example, Parry Neutraceuticals.

c) Liking: With the help of promotion, knowledgeable audience is changed

to likeable audience. Marketers use celebrities to create interest in the

product. For example, Reid and Taylor used Amitabh Bachchan to

highlight its product quality. 11


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3. Designing a message

After deciding the communication objectives, the marketer tries to

develop the right message which creates attention, interest, desire and

action (AIDA) in the customer.

I. The AIDA Model

Attention: The marketing communication should create attention towards the

product. The customer has a need and the organization should provide

solution from their communication.

Interest: When the customer give enough attention to the communication,

organization should encourage him/her to create interest.

Desire: The interest created should be forced in the customer mind so that he

develops a desire for the product.

Action: Strong desires should be turned into action. For this the company

should provide the advantages of purchasing of the product in their

communication messages.

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II. Deciding the message content

Message content must have any one of the following appeals

Emotional appeal

Positive emotional appeal or negative emotional appeals are used to increase

the purchasing activity of the customer. Positive emotions like love, pride, joy

and humor are used in the message.

The advertisements where attributes of positive emotions are used are

Makemytripjoy

BMW fastest saloon car in the worldPride

FevicolHumor

WheelLove

The advertisements where attributes of Negative emotions are used are

ICICI Prudential

Fear NIIT - If you are not studying at NIIT you are missing somethingguilt

Rexona DeodorantShame

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Rational appeal

Rational appeal highlights the benefits of the products like

quality, economy, value or performance.

Some examples of advertisements where rational appealsare used are

Dabur Amla Value appeal (Long hair)

Lakme brilliance Quality products

Reliance India Mobile Performance (Works even in

flood situations)

Reliance Infocom Like roti, kapda aur makaan, the

mobile phone must come to me as a necessity and not as

a luxury (Economy)

Moral appeal

These are commitments towards public health or environment or

social responsibility. For example, Shell lubricants show its

commitment towards environment in their advertisements.

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III. Message format

It is how a message should look and encourage the interest of

the audience.

Constituents of message format

Characteristics Suitable media.

1. Headline Print, Outdoor, Online

2. Copy Print, TV, outdoor, online

3. Illustration Print, TV, Outdoor, online4. Color Print, TV, outdoor, online

5. Pictures Print, Outdoor, online

6. Message size Print, TV, Outdoor

7. Shape Print, Outdoor, Online

8. Words Print, TV, Product, Outdoor

9. Sounds Radio, TV, Online, Outdoor

10. Voice Radio, TV, Online

11. Body language TV, Online

12. Texture Product, Print, Online

13. Scent Product

14. Distinctive formats Print, Online, Outdoor 16


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4. Selecting the channels for communication

The company may use sales people, reference groups, blogs, RSS, webinar,

online communities and social networking sites to promote their products.

These media are known as personal communication channels.

Word of mouth campaigns, buzz marketing and viral marketing are some

examples of personal communication channels.

a) Word of mouth communication: It is the personal communication

between customers and their reference groups about the product.

b) Buzz marketing: In this marketing technique organizations create opinionleaders (people whose opinion are wanted by others) and spread the

product information to others. For example gmail and google.

c) Viral marketing:It is the technique of using social networks on the

internet to create the brand image.

Communicators use mass media like print (Newspaper, magazine,journals), Broadcast (radio, television), Outdoor (hoardings, bill board

posters) and online (e-mail, communities, groups, websites) to

communicate the attributes of their product .

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5. Selecting the message source

Message communicated by celebrities and good sources are considered reliable by

the target consumers.

Companies use well known actors and actresses, cricket players, and even cartoon

characters to promote their advertisements.

ColgatePalmolive, a well known FMCG company used Indian Dental Associations

(IDA) recommendation to promote their toothpaste.

Rahul Dravid, Amitabh Bachan and Karishma Kapoor are used as sources for

Reebok, Reid and Taylor, and Dabur Amla respectively.

Companies should be very careful in selecting the sources. The product charactermust match with the source.

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6. Target customer feedback The communicator collects the feedback on the promotion campaign to

assess how many target customers are able to see, hear or read the

message.

This helps the communicator to understand how many target customers

are able to recall the message.

Feedback helps the communicator to understand how many customers

purchased the product.

Companies may also get suggestions from customers to improve the

promotion campaign.

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Budget Allocation Decisions in Marketing Communications

The selection of media, number of insertions and message

structure depend on the budget allotted to the

communication program.

Marketers decide the right budget for the communication

program and how to allot this optimally.

There are four methods to allocate budget for an

advertisement or a promotional campaign. They are:

1. Affordable method

2. Percentage of sales method

3. Competition method

4. Objective and task method

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Introduction to AdvertisingTypes of Advertisements

Institutional advertising: The purpose of such advertising is to improvethe image of the company rather than selling the product.

Product advertising: The objective of this type of advertisement is to

communicate about the product attributes to the target customer.

Product advertising is further classified into three types. They are

Pioneer advertising: This mode of advertisement is used to create awareness

and demand in the initial stage of the product life cycle.

Competitive advertisements: This type of advertisement is used to highlight

the differentiation of organizations product. This method is usually used in

the growth phase of product life cycle.

Comparative advertisements: This type of advertisement highlights thecomparison of companyscommunication message with competitorsproduct

information. This method is used when the competition is very high or sales

are slow.

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Decisions involved in developing advertisement

programs

Determining the advertisement objectives

Marketing management should decide the objectives of advertisements in the

initial stage of the program. The objectives of advertisements are:

i. Provide the information about advertisements and create awareness about the

product.

ii. Highlight the uniqueness of companysproducts over competitors.

iii. Reminding about the product and encouraging the thinking about the product.

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i. Message development

Message should be developed only after preparing the

complete target profile. Understand what the interests of the target customers are.

Message should answer the objectives of the program.

Message should be simple and can be understood by

anybody.

There should be use of more interactive communication tools.

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ii. Selecting advertising media

Assess how many target customers should view the communication

message.

Point out how many times a target customer will see the advertisement. Evaluate the impact of advertisement message on the target audience.

List out the media habits of the target customers.

Find the suitable media for type of product the organization has.

Prepare cost sheet and choose optimum media.

Choose particular media channel (Zee channel, Times now, Prajavani,

Hindu etc)

Decide how many times advertisement should be given in the year and

also decide the continuity of advertisement.

Allocate the media execution strategy on the basis of prime time and non

prime time or seasonal and non seasonal decisions.

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Evaluating advertising

The communication department wants to find whether the

message given is effectively reaching the consumer and

encouraging them to purchase the product.

To solve this purpose, they evaluate the advertisements by

various methods.

Some important methods used to evaluate advertisements

are recognition method (showing the advertisement andasking whether they have seen it before), aided recall (asking

people to tell the brand they remember) and unaided recall

(asking people if they can remember seeing any ads within an

identified product category).

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II. Print media

Newspapers

Continue to dominate local markets.

Retail and classified advertisement are key. Important advantages include flexibility and community prestige.

Magazines

Divided into two broad categories of consumer magazines and business

magazines.

These categories are also subdivided into monthly publications and weekly

publications.

Specialty advertisements can be promoted through this media.

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III. Outdoor Advertising1. Includes billboards, painted bulletins or displays, and electric boards

2. The oldest and simplest media business.

3. Effective in high traffic areas.

4. Environmentalists oppose this type of advertisement.

IV. Online advertising

1. Contains characteristics of both print and broadcast media.

2. Improves two-way communication and encourages audience participation.

3. Example of this media is e- mail.

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V. Other Advertising Media

Transit advertisement: These are advertisements placed on the buses and

moving vehicles.

Movie advertising: This is inserting the advertisement inside the movie.

In flight commercials: These are advertisements placed in the airplanes.

Using yellow pages and pamphlets to advertise the product.

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Fundamentals of Sales Promotion Sales promotions are short term programs that encourage consumers to

purchase a product or service immediately.

SalesPromotion comprises that range of techniques used to attain sales

or marketing objectives in a cost effective manner by adding value to a

product or service either to intermediaries or end users, normally but not

exclusively within a defined time period.

---- Institute of Sales Promotion

Sales promotions are short term incentives that are used to generate

instant sales.

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Sales promotion methods according to Indian market:

Sales promotion uses three different types of tools. They are

1. Consumer promotion tools

2. Trade promotion tools3. Business promotion tools.

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4. Add on promotion: Promotion offers a free or an additional

product (same or different) with the original product. For

example, an 8 ml Sunsilk shampoo sachet free with 75g

Pears.5. Exchange promotion: Price of a product is reduced when an

old product is exchanged for new product. For example, bring

your old color television and take home a Philips LCD TV for

Rs 15,000.6. Combination promotion: Two or more products are offered

together at a discount price or some incentive is given on a

combination pack. For example, save Rs 10 on the combined

purchase of Colgate toothpaste and tooth brush.

7. Volume promotion: Allows additional quantity of product

free on its purchase. For example, get 50g extra on purchase

of 100g Tide.

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Top 10 companies on usage of sale promotions (2007).

1. Maruti Suzuki Ltd.

2. Reliance Communications Ltd.3. Nokia Corporation

4. LG Electronics India Ltd.

5. Pantaloons India Ltd.

6. HP India Ltd.

7. Tata Sky Ltd.

8. Planning Consultant India Ltd.

9. Samsung India Electronics Ltd.

10. Hero Honda Motors Ltd.

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II. Trade promotion tools: These promotions are targeted to

retailers and wholesalers. The purpose of this type of

promotion is to get the shelf space, motivate the retailers

and wholesalers to sell the products and promote brands inthe local media. There are many trade promotion tools used

in the market but the two major ones are discounts and

allowances.

1. Discounts: Manufacturer gives straight reduction in the listprice on every purchase that channel member does in the

particular period.

2. Allowances: This is the value provided by the manufacturer

to the channel member to advertise the product in the local

media or display the product in the store.

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III. Business Promotion tools

These are promotion tools used to lead generation, reward

customer and motivate salespeople for business customers.

An organization uses conventions and trade shows.

For example, Machine tool industry organizes Amtex

exhibition in different places of the country.

Organization also conducts sales contest for its salesexecutives to motivate them to sell more.

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Basics of Public Relations

Public relations (PR) are the management of internal and external

communication of an organization to create and maintain a positive

image.

Public relations involve highlighting success, downplaying failures,

announcing changes, and many other activities.

Methods of public relations:

Lobby groups: These are established to influence government policy,

corporate policy, or public opinion. These groups have a particular

interest.

News conferences and grand openings to attract media and customers.Using written and audio visual material to reach the public.

Social responsibilities of the organization have shown through public

service activities.

Preparing interactive website, communities and blogs on the internet.

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Role of public relations in communications

Public relation messages are created by the company staff and

distributed in the media without any cost.

If the message is powerful, it reaches different media.

Whenever the company faces any problem, it looks towards

the public relations and not advertisements.

For example, in Cadbury chocolate worm issue or cola

pesticide issue public relations is used more than the

advertisements.

The firms public relations should be mixed with other

promotion activities of the company.

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Unit 12 Promotion Management Managing Non Personal

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Transcript of Unit 12 Promotion Management Managing Non Personal