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M. R. GOVERNMENT ARTS COLLEGE, MANNARGUDI
PG & RESEARCH DEPARTMENT OF COMMERCE
II B.Com – SEMESTER IV
INTRODUCTION TO MARKETING MANAGEMENT - 16RSBE9:1
Study Material
By
Dr. T. R. Muralidaran
Guest Lecturer
PG & Research Department of Commerce
M. R. Government Arts College,
Mannargudi
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SYLLABUS
Unit – 1
Meaning of Marketing management – functions of marketing management –
difference between marketing management and sales management
Unit – 2
Marketing manager’s responsibility – marketing planning – need, importance and
process of planning
Unit – 3
Marketing organization – types of organization – committee type, product type,
line, staff and staff organization - marketing decision making
Unit - 4
Marketing control and marketing audit – types and methods of conducting
marketing audit – marketing risks – methods of dealing with marketing risks
Unit - 5
Advertising management – need – importance – advertising strategy –
advertisement copy – media planning – effectiveness of advertisement
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Unit – I
MEANING OF MARKETING
Marketing is the business function that controls the level and composition of
demand in the market. It deals with creating and maintaining demand for goods
and services of the organization.
MEANING OF MARKETING MANAGEMENT
Marketing management is ―planning, organising, controlling and
implementing of marketing programmes, policies, strategies and tactics designed to
create and satisfy the demand for the firms‘ product offerings or services as a
means of generating an acceptable profit.
DEFINITION
According to Philip Kotler, ―Marketing Management is the art and science
of choosing target markets and building profitable relationship with them.
Marketing management is a process involving analysis, planning, implementing
and control and it covers goods, services, ideas and the goal is to produce
satisfaction to the parties involved.
FEATURES OF MARKETING
i. Focus on customer needs
The needs of the consumer are studied and these become the basis of all
product related activities such as designing, pricing, distribution, packaging etc.
ii. Providing consumer satisfaction
Every organization aims at providing maximum consumer satisfaction by
understanding his needs and designing an appropriate product. The success of an
organization is directly related to the consumer satisfaction it provides.
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iii. Integrated Marketing Management
Marketing management is only a part of the total managerial functions of an
organization such as finance management, production management, human
resources management etc. All these functions are integrated in order to provide
maximum satisfaction to the consumer. Thus all the functional areas of an
organization are integrated.
iv. Achieving organizational goals
Modern marketing states that an organization must aim at maximizing
consumer satisfaction and in the process enable itself to achieve its goals such as
growth, market share and reasonable amount of profit or return on investment.
v. Innovation
Innovation is an important tool to provide consumer satisfaction. Innovative
methods must be used to understand the consumer, design an appropriate product
and offer it to the consumer.
FEATURES OF MARKETING MANAGEMENT
1. Managerial Process
Marketing management is a managerial process involving planning,
organising, decision making, forecasting, directing, coordinating and controlling.
Stanley Vance defines management as the process of decision making and
controlling. Every aspect of marketing, starting with identifying the consumer‘s
need and wants, identifying the targeted customer, product planning, development,
pricing, promotion, distribution process requires planning, decision making,
coordination and controlling.
2. Consumer Centric
All marketing activities are consumer centric. The consumers are the king.
Marketing activities are based on the premise of ―make what the market wants‖.
The principal objective of marketing is to create new customers and to retain
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current customer. Marketing management performs the task of converting the
potential customers into actual customer.
This is possible through satisfaction of customer‘s needs and wants by
delivering them, appropriate goods and services according to their needs and
wants, at right time and through convenient channel.
3. Research Analysis
The basis function of marketing is identification of consumer‘s needs and
wants .This requires continuous and systematic collection of data, analysis and
reporting of data relevant to marketing activities. This helps the management to
understand consumer‘s needs, wants, preferences and behaviour of the consumer
towards firm‘s marketing mix strategies. This helps in forecasting and planning
future course of action.
4. Planning and Development
Marketing involves planning and development of goods and services.
Organizations make a continuous endeavour towards planning, development and
innovation of product and services so as to meet the changing demand, taste and
preferences of the consumers.
5. Building Marketing Framework
Marketing activities are not just selling and distribution of ownership of
goods and services from the producer to the ultimate consumer. But it involves a
series of activities like research analysis, production, development and innovation,
advertisement and promotion pricing decision, selling and distribution, customer
relationship and after sales service.
All these functional areas of marketing must be effectively planned,
organised and built effectively to achieve best results. Marketing structure depends
upon the size of the enterprise, geographical coverage of the operation, number of
product lines, nature of product, size of customers.
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6. Organizational Objectives
All marketing activities are based on overall organisational objectives. The
marketer bridges the gap between overall organisational objectives of achieving
high profit and maximization of sales and consumer‘s interest of satisfying needs.
7. Promotional and Communication Process
The ultimate objective of a firm is to maximise sales volume and profit. This
can be achieved through promotion and communication about the goods and
services. This function of marketing management enables the firm to provide
information about the product to the customers.
8. Controlling of Activities
Marketing management performs the function of controlling of marketing
activities. Marketing management evaluates the effectiveness of marketing
activities, to judge the efficiency of marketing personnel and the plans. This
process involves measuring the actual performance with the standard and
identifying the deviations and taking corrective actions.
FUNCTIONS OF MARKETING
1. Selling
2. Buying and Assembling
3. Transportation
4. Storage
5. Standardization and Grading
6. Financing
7. Risk Taking
8. Market Information
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1. Selling:
It is core of marketing. It is concerned with the prospective buyers to actually
complete the purchase of an article. It involves transfer of ownership of goods to the
buyer. Selling plays an important part in realising the ultimate aim of earring profit.
Selling is enhanced by means of personal selling, advertising, publicity and sales
promotion. Effectiveness and efficiency in selling determines the volume of company‘s
profits and profitability.
2. Buying and Assembling:
It involves what to buy, of what quality, how much from whom, when and at what
price. People in business buy to increase sales or to decrease costs. Purchasing agents are
much influenced by quality, service and price.
The products that the retailers buy for resale are determined by the needs and
preferences of their customers. A manufacturer buys raw materials, spare parts,
machinery, equipment‘s, etc. for carrying out his production process and other related
activities. A wholesaler buys products to resell them to the retailers.
Assembling refers to the purchase necessary component parts and to fit them
together to make a product. Assembly line indicates a production line made up of purely
assembly operations. The assembly operation involves the arrival of individual
component parts at the work place and issuing of these parts to be fastened together in
the form of an assembly or sub-assembly.
3. Transportation:
Transportation is the physical means by which goods are moved from the places
where they are produced to those places where they are needed for consumption. It
creates place, utility. Transportation is essential from the procurement of raw material to
the delivery of finished products to the customer‘s places. Marketing relies mainly on
railroads, trucks, waterways, pipelines and air transport.
The type of transportation is chosen on several considerations, such as suitability, speed
and cost. Transportation may be performed either by the buyer or by the seller. The
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nature and kind of the transportation facilities determine the extent of the marketing area,
the regularity in supply, uniform price maintenance and easy access to the supplier or
seller.
4. Storage:
It involves holding of goods in proper (i.e., usable or saleable) condition from the
time they are produced until they are needed by customers (in case of finished products)
or by the production department (in case of raw materials and stores); storing protects the
goods from deterioration and helps in carrying over surplus for future consumption or
use in production.
Goods may be stored in various warehouses situated at different places, which is
popularly known as warehousing. Warehouses should be situated at such places from
where the distribution of goods may be easier and cheaper. Situation of warehouses is
also important from the view of prompt feeding of emergency demands. Storing assumes
importance when production is regional or consumption may be regional. Retail firms
are called ―stores.
5. Standardization and Grading:
The other activities that facilitate marketing are standardisation and grading.
Standardisation means establishment of certain standards or specifications for products
based on intrinsic physical qualities of any commodity.
This may involve quantity (weight or size) or it may involve quality (colour,
shape, appearance, material, taste, sweetness etc.) Government may also set some
standards, for example, in case of agricultural products. A standard conveys a uniformity
of the products.
Grading means classification of standardised products into certain well defined
classes or groups. It involves the division of products into classes made of units
possessing similar characteristics of size and quality. Grading is very important for raw
materials, marketing of agricultural products (such as fruits and cereals), mining
products (such as coal, iron and manganese) and forest products (such as timber).
Branded consumer products may bear grade labels A, B, C.
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6. Financing:
It involves the use of capital to meet financial requirements of agencies dealing
with various activities of marketing. The services to provide the credit and money
needed, the costs of getting merchandise into the hands of the final user is commonly
referred to as finance function in marketing.
In marketing, finances are needed for working capital and fixed capital which may
be secured from three sources—owned capital, bank loans and advance and trade credit.
(Provided by manufacturers to wholesaler and by the wholesaler to the retailers) In other
words, various kinds of finances are short-term finance, medium-term finance, and long-
term finance.
7. Risk Taking:
Risk means loss due to some unforeseen circumstances in future. Risk bearing in
marketing refers to the financial risk interest in the ownership of goods held for an
anticipated demand including the possible losses due to a fall in prices and the losses
from spoilage, depreciation, obsolescence, fire and floods or any other loss that may
occur with the passage of time.
From production of goods to its selling stage, many risks are involved due to
changes in market conditions, natural causes and human factors. Changes in fashion or
inventions also cause risks. Legislative measures of government may also cause risks.
Risks may arise during the course of transportation.
They may also be due to decay, deterioration and accidents, or due to fluctuation
in the prices caused by changes in their supply and demand. The various risks are usually
termed as place risk, time risk and physical risk, etc.
8. Market Information:
The importance of this facilitating function of marketing has been recognised only
recently. The only sound foundation on which marketing decisions may be based is
correct and timely market information. Right facts and information reduce the aforesaid
risks and thereby result in cost reduction.
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Modern marketing requires a lot of information adequately, accurately and
speedily. Marketing information makes a seller know when to sell, at what price to sell,
who are the competitors, etc. Marketing information and its proper analysis has led to
marketing research which has now become an independent branch of marketing.
DIFFERENCE BETWEEN MARKETING MANAGEMENT AND SALES
MANAGEMENT
Definition of Sales management
Sales management is the process of developing a sales force, coordinating
sales operations, and implementing sales techniques that allow a business to
consistently hit, and even surpass, its sales targets. If your business brings in any
revenue at all, a sales management strategy is an absolute must.
BASIS FOR
SALES MARKETING
COMPARISON
Meaning A sale refers to the process of selling, Marketing understands the
whereby product is offered for sale to
requirements of the customers in
such
the customer at a certain price and at a
a way that whenever any new
product
given period of time. is introduced, it sells itself.
Orientation
Customer-oriented
Product-oriented
Approach Fragmented approach Integrated approach
Focus Company needs Market needs
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Related to
Related to flow of goods to
customers. Related to all the activities which
facilitates flow of goods to
customers.
Duration Short-term Long-term
Objective
To instigate shoppers in such a way
that To identify the needs of customers
they turn out as buyers. and create products to satisfy those
needs.
Relationship One-to-One One-to-Many
Target Individual or small group General Public
Scope Selling of the product. Advertisement, Sales, Research,
Customer satisfaction, After sales
services etc.
Activity Customer driven Media driven
Strategy used Push Strategy Pull Strategy
Process
Entails identifying and satisfying
Involves exchange of goods for
adequate consideration. customer's needs.
Rule Caveat Emptor Caveat Vendor
Technique
Customer relationship through
Price promotion, Discounts and
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Special
offers.
integration of organization with
the
needs of customers.
Skills required
Analytical skills
Selling and Conversational skills
Aims at Profit maximization through sales Profit maximization through
maximization.
increased consumer satisfaction
and
market share.
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UNIT – II
MARKETING MANAGER RESPONSIBILITIES:
Developing a pricing strategy that maximizes profits and market share but
considers customer satisfaction.
Identifying new customers.
Supporting sales and lead generation efforts.
Creating promotions with advertising managers.
Understanding and developing budgets, including expenditures, research
and development appropriations, return-on-investment and profit-loss
projections.
Compiling lists describing our organization's offerings.
Developing and managing advertising campaigns.
Organizing company conferences, trade shows, and major events.
Building brand awareness and positioning.
Evaluating and maintaining a marketing strategy.
Directing, planning and coordinating marketing efforts.
Communicating the marketing plan.
Developing each marketing campaign from start to finish.
Researching demand for the organization's products and services.
Evaluating competitors.
Handling social media, public relation efforts, and content marketing.
MARKETING MANAGER REQUIREMENTS:
Bachelor degree or master degree in marketing, business administration,
Experience with creating a marketing campaign, marketing strategy, and
marketing plan.
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Experience with online marketing, including social media, and content
marketing.
Understanding of public relations.
Advanced communication skills.
Ability to quickly adapt to change.
MEANING OF MARKETING PLANNING
Marketing planning is the preface to any business enterprise. Planning is
deciding at present as to what we are going to do in the future. It involves rot only
anticipating the consequences of decisions but also predict the events that are
likely to affect the business.
DEFINITION
According to American Marketing Association, ―marketing planning is the
work of setting up objectives for marketing activity and of determining and
scheduling the steps necessary to achieve such objectives.‖ Planning is the first
management function to be performed in the process of management. It governs
survival, growth and prosperity of any enterprise in a competitive and ever-
changing environment.
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IMPORTANCE OF MARKETING PLANNING:-
1. It helps in avoiding future uncertainties.
2. It helps in management by objectives.
3. It helps in achieving objectives.
4. It helps in coordination and communication among the departments.
5. It helps in control.
6. It helps the customers in getting full satisfaction.
NEEDS & BENEFITS OF MARKETING PLANNING:
1. Marketing planning promotes successful marketing operations.
2. Planning helps to co-ordinate activities which can facilitate the attainment of
objectives over time.
3. It forces management to reflect upon the future in a systematic way.
4. Resources can be better balanced in relation to identified market opportunities.
5. A plan provides a frame work for a continuing review of operations. It will make
the firm to give more attention to market enlargement rather than market
maintenance.
6. Marketing planning helps to appraise performance, capitalize on strength,
minimize weaknesses and threats and finally open up new opportunities.
7. Planning can be advocated to minimize the risk of failure.
8. Marketing planning reduces the adverse consequences of unfavourable
circumstances beyond the influence of management.
9. A marketing plan promotes a comprehensive view of the business firm and acts
as a process of communication and co-ordination between marketing department
and other departments.
10. A greater preparedness to accommodate change can be stimulated.
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CHARACTERISTICS OF MARKETING PLANNING:
1. The success depends to a large extent upon human behaviour and response.
2. They are complicated in nature.
3. Marketing decisions have long term effects on efficiency, profitability and
market standing of the firm.
4. Marketing planning is a formal and systematic approach towards planning of all
marketing activities-product positioning, price setting, distribution channels etc.
5. Marketing planning, as a rational activity, requires thinking; imagination and
foresight. Market analysis, market projection, consumer behaviour analysis and
marketing-guided conclusions are based on data and measurements drawn from
internal and external environments.
6. Marketing planning is a forward-looking and dynamic process designed to
promote market-oriented or consumer-oriented business actions.
7. Planning is concerned with two things:
(i) Avoiding incorrect actions and
(ii) Reducing frequency of failure to exploit opportunities.
Thus, marketing planning has both an optimistic and a pessimistic component.
8. Marketing planning is done by the marketing department. Various sub-divisions
and sections under the department give their proposals based on which the overall
company marketing plans are developed and designed.
9. Planning is a process of deciding in advance what to do and how to do it. If the
marketing planner desires to achieve a target market at some future date and if he
needs some time to decide what to do and how to do it, he must make the
necessary marketing decisions before taking action.
10. Planning is basically a decision-making process. Marketing planning is a
programme of marketing-based actions regarding the future with the object of
minimizing risk and uncertainty and producing a set of interrelated decisions.
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MARKETING PLANNING PROCESS
Marketing planning process is a series of stages that are usually followed in
a sequence. Organisations can adapt their marketing plan to suit the circumstances
and their requirements. Marketing planning process involves both the development
of objectives and specifications for how to achieve the objectives. Following are
the steps involved in a marketing plan.
1) Mission
Mission is the reason for which an organisation exists. Mission statement is
a straightforward statement that shows why an organisation is in business,
provides basic guidelines for further planning, and establishes broad parameters
for the future. Many of the useful mission statements motivate staff and
customers.
2) Corporate Objectives
Objectives are the set of goals to be achieved within a specified period of
time. Corporate objectives are most important goals the organisation as a whole
wishes to achieve within a specified period of time, say one or five years.
Mission statement and corporate objectives are determined by the top level
management (including Board of Directors) of the organisation. The rest of the
steps of marketing planning process are performed by marketing department. All
the actions and decisions of the marketing department must be directed to
achieve organisation mission and its corporate objectives.
3) Marketing Audit
Marketing audit helps in analysing and evaluating the marketing strategies,
activities, problems, goals, and results. Marketing audit is done to check all the
aspects of business directly related to marketing department. It is done not only at
the beginning of the marketing planning process but, also at a series of points
during the implementation of plan. The marketing audit clarifies opportunities and
threats, so that required alterations can be done to the plan if necessary.
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4) SWOT Analysis
The information gathered through the marketing audit process is used in
development of SWOT Analysis. It is a look at organisation's marketing efforts,
and its strengths, weaknesses, opportunities, and threats related to marketing
functions.
Strengths and Weaknesses are factors inside the organisation that can be
controlled by the organisation. USP of a product can be the example of
strength, whereas lack of innovation can be the example of weakness.
Opportunities and Threats are factors outside the organisation which are
beyond the direct control of an organisation. Festive season can be an
example of opportunity to make maximum sales, whereas increasing FDI in
a nation can be the example of threat to domestic players of that nation.
5) Marketing Assumptions
A good marketing plan is based on deep customer understanding and
knowledge, but it is not possible to know everything about the customer, so lot of
different things are assumed about customer.
For example:-
Target Buyer Assumptions - assumptions about who the target buyers are.
Messaging/Offering Assumptions - assumptions about what customers
think are the most important features of product to be offered.
6) Marketing Objectives and Strategies
After identification of opportunities and challenges, the next step is to
develop marketing objectives that indicate the end state to achieve. Marketing
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objective reflects what an organisation can accomplish through marketing in the
coming years.
Objective identifies the end point to achieve. Marketing strategies are
formed to achieve the marketing objectives. Marketing strategies are formed to
determine how to achieve those end points. Strategies are broad statements of
activities to be performed to achieve those end points.
7) Forecast the Expected Results
Marketing managers have to forecast the expected results. They have to
project the future numbers, characteristics, and trends in the target market. Without
proper forecasting, the marketing plan could have unrealistic goals or fall short on
what is promised to deliver.
Forecasting Customer Response - Marketing managers have to forecast the
response that the average customers will have to marketing efforts. Without
some idea how the marketing will be received, managers can't accurately
plan the promotions.
Forecasting Marketing cost - To make the marketing plan stronger,
accurate forecast of marketing cost is required to be done.
Forecasting the Market - To accurately forecast the market, marketing
managers have to gain an intimate understanding of customers, their buying
behaviour, and tendencies.
Forecasting the Competition - Forecast of competition like - what they
market, how they market, what incentives they use in their marketing can
help to counter what they are doing.
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8) Create Alternative Plan
An alternate marketing plan is created and kept ready to be implement at the
place of primary marketing plan if the whole or some part of the primary
marketing plan is dropped.
9) Marketing Budget
The marketing budget is the process of documenting the expected costs of
the proposed marketing plan. One common method to allocate marketing
budgeting is based on a percentage of revenue. Other methods are - comparative,
all you can afford, and task method.
10) Implementation and Evaluation
At this stage the marketing team is ready to actually start putting their plans
into action. This may involve spending money on advertising, launching new
products, interacting with potential new customers, opening new retail outlets etc.
The marketing planning process is required to be evaluated and updated
regular. Regular evaluation of marketing efforts helps in achieving marketing
goals.
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UNIT – III
MEANING AND DEFINITION OF MARKETING ORGANISATION:
Organising is a managerial function. It is a framework of relationship among
different person in an organization which specifies their authority, responsibilities
and duties. Organization is thus, a mechanism through which policies are executed
into actions. Marketing organization is made up of two words – marketing and
organization. Marketing organization is a framework for planning and executing
decisions in marketing activities. It is a group of marketing people working
together in a coordinated manner to achieve pre-determined marketing objectives.
According to George Terry organisation is the establishment of effective
authority relationship among selected work, person and work places in order for
the group to work together.
NEED FOR MARKETING ORGANIZATION:
i. Lack of Initiative:
In the organization people lack initiative to undertake specific
responsibilities on their own. They are unable to maintain close relations amongst
themselves. Hence, they have to be brought together and specific authority and
responsibilities have to be assigned.
ii. To Balance Individual Goals and Organizational Goals:
In an organization, people are guided by individual goals which are quite
different from organizational goals. To reconcile the two goals, organization
became necessary. Every individual tries to balance the individual goals with the
organizational goals.
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iii. To Avoid Conflict:
Organisation consists of people who have vertical or horizontal relationship.
This may lead to confusion and conflict if lines of authority and responsibility are
not cleared defined. Therefore organisation of activities became essential. Each
individual should know his specific role, responsibility and authority. This will
ensure proper coordination of activities in the organization.
iv. Organization Ensures Proper Performance of Different Functions:
Marketing involves various functions and sub-functions. People in the
marketing department should be clear with their specific marketing
responsibilities. Further, a balance is also to be achieved with other functional
departments like production, finance and personnel.
v. Nature of Marketing Job:
The nature of marketing job is such that it involves people in activities such
as idea, innovation and behaviour of consumer and other intermediary. The study
of complex human behaviour becomes organised. A good organisation structure
ensures proper coordination and willingness to perform the complex task.
FACTORS INFLUENCING SIZE OF MARKETING ORGANIZATION:
1. Management’s Philosophy:
One of the major factors influencing size of marketing organization is the
philosophy of the company‘s management. Management may pursue different
philosophy like that of centralization or decentralization, individual action or group
action, their attitude and value judgment.
2. Type of Product:
The nature of product has significant influence on the size of marketing
organization. Technical products like engineering goods require greater
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explanation, hence direct selling became a better option, and this requires larger
sales force and organisation. On the other hand, fast moving goods (FMCG) can be
easily sold through the distribution channel and hence require smaller sales force
and small organization.
3. Product Line:
The length of the product line organisation is a major factor determining the
size of sales organisation. If the firm deals in large number of product, it requires
big size organization. To sell big variety of products, firm has to develop market
oriented organisation structure so as to cover new areas and new markets. For
small number of products, functional organization is suitable.
4. Markets:
Markets relates to various factors like size of the market, location of the
market, nature of the market, scope of the market etc. Each of these factors
influences the size of the organisation. If the markets are widely dispersed, large
sales force is required and so the size of the organisation is large and vice versa.
5. Channel of Distribution:
The distribution channel developed by a firm has a direct effect on the size
of the marketing organization. Under indirect channels, intermediaries are there,
who sell the product, thus, the size of organization is small whereas, under direct
channel system, firm employees its own sales people to sell the goods, therefore
the size of organization is large.
6. Needs and Requirements of the Customers:
Market, today are highly complex as there is a continuous change in the
customer‘s requirements and expectation from the company. As a result as
customer‘s demand better facilities and new facilities, company has to accordingly
adjust its sales organization.
7. Business Conditions and Environment:
The environment in which a unit carries out its activities also has an impact
on the size of the marketing organization. The requirement of success in that
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industries and the rate of changes in that industry is an important factor that
decides the size of organization.
8. Sales Activity:
The size of marketing organization depends to a large extent on the sales
activity of the form. If more sales and sales related activities are there, the size will
be large and vice versa.
ESSENTIALS OF GOOD MARKETING ORGANISATION STRUCTURE:
1. Clarity of Relationship between Line and Staff People:
While developing a marketing organization, clarity should be ensured in
defining the relationship between line function and staff function. In absence of
this, conflicts may be there which will disturb the smooth functioning of the
organization. To avoid friction and inefficiency, therefore, it is necessary that
proper and meaningful integration of the line and staff function is there. Co -
operative relationship between various departments and functions signifies a good
marketing organizational structure.
2. Levels and Span of Control:
Another important factor which should be seriously considered is the level in
the organization and span of control. Span of control refer to the number of
subordinates being controlled by a superior. Each executive position must be clear
as to its span of control. Efforts should be made to avoid too many levels in the
organization.
3. Role Clarity:
A good marketing organization structure should try to maintain clarity in the
job requirement of an executive. Job requirements include factors like basic
function/role of the executive, his authority and responsibility, his financial
powers, to whom he will report etc. If the executive is clear regarding his role,
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smooth functioning will be there in the organization. Otherwise, ambiguity will be
there, resulting in friction and inefficiency in the organization.
4. Effective Co-Ordination:
Effective coordination among various functions and departments of the
organization should be ensured. The marketing department should have effective
coordination with various other departments of the organization like finance,
personnel, production, corporate planning etc. Coordination should be an essential
part or a built mechanism of the organization.
5. Marketing Oriented:
A marketing organization should represent the interest of the customer
within the company, which helps in long term growth of the firm. The requirement
of the consumer and the market should be taken care of. Organization should be
structured around the products and the markets.
6. Recognizing Informal Relations:
An organisational structure in general defines the horizontal and vertical
relationship between the people. However, apart from formal relationship, it is the
informal relationship also which decides the success of the organisation.
Popularly known as ―Grapevine‖ in management literature, informal
relations are the invisible alliances between the people in the organisation. These
relations help in building the goodwill and team spirit, and therefore its
significance cannot be underestimated. A good marketing organisation should thus
recognize both the formal and informal relations in the organisation.
7. Flexible Structure:
A good marketing organisation should be flexible and not static or
immovable. Markets are highly dynamic and therefore the organisation should also
be dynamic, adjusting to the changing needs of the markets and environment. An
organisation structure should not be rigid or watertight but flexible so that it can be
easily understood and can adapt to the changes. This will help in better response to
the competitors and the customers.
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8. Maintaining Balance:
The overall effectiveness in the marketing organisation calls for the balance
in the activities. Whether the organisation is big or small, attempt should be made
to avoid extremes and excesses and maintain balance. In other words, nothing
should be over-emphasized in the organisation. Line and staff relationship,
centralization and decentralization, short and long span of control, different levels
in the organisation, etc. should be balanced. This ensures smoothness in operations.
9. Cost Effectiveness:
Organisation should be so structured that it is cost effective. A balance
between the cost and benefit should be maintained. For this purpose all types of
excesses should be avoided. Undue duplication of efforts and overstaffing should
not be there.
10. Flow of Information:
A two-way flow of information should be there in the organisation, i.e. from
bottom to top and top to back. Smooth flow of information both ways ensures
better functioning in the organisation. At the same time this information should be
authentic and timely. In general, when information flow upwards it turns from
specific to general and when it moves downwards, it turns from general to specific.
TYPES OF MARKETING ORGANIZATION
1. Military Type of Organisation:
This is the simplest and oldest form of organisation. It is also referred as line
organisation, scalar or hierarchical organisation. Under this type of organisation, a
superior delegate‘s authority to a subordinate, who in turn delegates authority to
another subordinate and so on. Authority descends from the top to the bottom
level, through downward delegation of authority. Subordinates become responsible
to their immediate superiors. The topmost management has full control over the
entire field.
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Merits:
1. It is simple to work.
2. It is economical and effective.
3. It is easy to fix responsibility.
4. It facilitates quick decisions and prompt actions.
5. Quick communication is easy.
6. Discipline can easily be maintained.
Demerits:
1. The organisation is rigid and inflexible.
2. It works on a dictatorial basis.
3. Departmental heads act on their own whims and desire, as it is difficult to secure
coordination of the activities of workers and departments.
4. In big business it does not operate satisfactorily.
2. Functional Type Organisation:
The limitations of line organisation have been removed under this system.
All types of work of the organisation are grouped and managed by the top
executive. There are separate functional departments for major functions of the
enterprise; example personnel department, purchase department etc. Each
department does its function for the entire organisation. Sales department does the
function for the whole enterprise. The functional organisation works through the
line organisation. Functional organisation is based on expert knowledge and makes
the greatest use of division of labour resulting in high efficiency and specialization.
Merits:
1. Greatest use of division of labour is possible.
2. The system is based on expert knowledge.
3. Functional efficiency of the worker can be maintained.
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4. Mass production is made by standardization and specialization.
5. Separation of mental and manual functions is possible.
6. Methods and operations can be standardized.
Demerits:
1. Too many experts and bosses (high officials) create confusion in the mind of the
worker.
2. It is difficult to fix responsibility on workers.
3. Discipline and morale of the workers are seriously affected, because of
contradictory orders from different experts.
4. There is heavy overhead expense.
3. Line and Staff Organization:
Line and staff organization is a modification of line organization and it is
more complex than line organization. According to this administrative
organization, specialized and supportive activities are attached to the line of
command by appointing staff supervisors and staff specialists who are attached to
the line authority. The power of command always remains with the line executives
and staff supervisors guide, advice and council the line executives. Personal
Secretary to the Managing Director is a staff official.
Merits of Line and Staff Organization
1. Relief to line of executives- In a line and staff organization, the advice and
counseling which is provided to the line executives divides the work
between the two. The line executive can concentrate on the execution of
plans and they get relieved of dividing their attention to many areas.
2. Expert advice- The line and staff organization facilitates expert advice to
the line executive at the time of need. The planning and investigation which
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is related to different matters can be done by the staff specialist and line
officers can concentrate on execution of plans.
3. Benefit of Specialization- Line and staff through division of whole concern
into two types of authority divides the enterprise into parts and functional
areas. This way every officer or official can concentrate in its own area.
4. Better co-ordination- Line and staff organization through specialization is
able to provide better decision making and concentration remains in few
hands. This feature helps in bringing co-ordination in work as every official
is concentrating in their own area.
5. Benefits of Research and Development- Through the advice of specialized
staff, the line executives, the line executives get time to execute plans by
taking productive decisions which are helpful for a concern. This gives a
wide scope to the line executive to bring innovations and go for research
work in those areas. This is possible due to the presence of staff specialists.
6. Training- Due to the presence of staff specialists and their expert advice
serves as ground for training to line officials. Line executives can give due
concentration to their decision making. This in itself is a training ground for
them.
7. Balanced decisions- The factor of specialization which is achieved by line
staff helps in bringing co-ordination. This relationship automatically ends up
the line official to take better and balanced decision.
8. Unity of action- Unity of action is a result of unified control. Control and its
effectivity take place when co-ordination is present in the concern. In the
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line and staff authority all the officials have got independence to make
decisions. This serves as effective control in the whole enterprise.
Demerits of Line and Staff Organization
1. Lack of understanding- In a line and staff organization, there are two
authority flowing at one time. This results in the confusion between the two.
As a result, the workers are not able to understand as to who is their
commanding authority. Hence the problem of understanding can be a hurdle
in effective running.
2. Lack of sound advice- The line official get used to the expertise advice of
the staff. At times the staff specialist also provide wrong decisions which the
line executive have to consider. This can affect the efficient running of the
enterprise.
3. Line and staff conflicts- Line and staff are two authorities which are
flowing at the same time. The factors of designations, status influence
sentiments which are related to their relation, can pose a distress on the
minds of the employees. This leads to minimizing of co-ordination which
hampers a concern‘s working.
4. Costly- In line and staff concern, the concerns have to maintain the high
remuneration of staff specialist. This proves to be costly for a concern with
limited finance.
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5. Assumption of authority- The power of concern is with the line official but
the staff dislikes it as they are the one more in mental work.
6. Staff steals the show- In a line and staff concern, the higher returns are
considered to be a product of staff advice and counseling. The line officials
feel dissatisfied and a feeling of distress enters a concern. The satisfaction of
line officials is very important for effective results.
4. Committee Organisation:
Committee organisation is widely used for the purpose of discharging advisory
functions of the management. Committees are formed in different levels of
organisation. A committee is a group of people who meet by plan to discuss or make
a decision on a particular subject. Because of its advantages, committee organisation
is preferred. The management committee usually consists of General Manager and
departmental heads to deal with current problems. A coordinated plan is agreed to in
a meeting. Thus group judgement is possible to attain an aimed result.
Merits:
1. It stimulates co-operative action.
2. It can promote better understanding.
3. A problem is discussed in detail and decision taken.
4. It facilitates co-ordination of activities of various departments.
5. Group discussion and decision will bring better results.
6. It gives demographic management.
Demerits:
1. Committees are expensive.
2. Committee weakens individual responsibility.
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3. Committee may sometimes become time-consuming rather than time-saving.
4. Responsibility cannot be fixed on any person.
5. It lacks secrecy.
5. Geographical Type:
The structure is based on territorial or regional basis. When business activities
are expanded, the various parts of the market area are divided into territories. The
whole world into continents, continent into regions, region into zones, zone into
districts etc. This type of organisation gives importance to the consumer‘s needs and
desire, especially in pharmaceutical companies.
Merits (Geographical Type):
1. Geographical type of divisions allows a manager to pay special attention to the
needs and problems of the local markets.
2. Geographic type of organisation provides opportunities for local talent to be
utilized.
3. Geographic division helps managers gain extensive knowledge of diverse
activities.
4. This type of organisation improves an organization‘s relationship with customers.
Demerits (Geographical Type):
1. This type of organisation requires more people to work.
2. There arise communication problems.
3. Cost of operations is high.
4. Top managers at HO find it difficult to control and supervise the activities in
different locations.
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6. Product Type:
Certain companies produce different varieties of products and it is
advantageous to boost the sales on the basis of product or product groups. A separate
product manager is appointed for each product. He attends to the production and
marketing of his products when the market is competitive, the product type
organisation with the product manager can concentrate its attention on the
performance of a particular product or brand. Sales promotion, advertising,
marketing research etc., remain as the centralized activity for the product group.
7. Market Type (Consumer):
This type of organisation is based on the different types of customers. The
enterprises have adopted customer-oriented marketing and thus there arise two sets
of organisations through which the needs of customers or market are met; i.e.,
subdivision of markets on the basis of government and non-government customers,
industrial individual customers, rich and poor customers and on the basis of sex,
income, taste, age etc. A firm may have different groups of customers, who have
different needs and problems. Thus, each section can look into the needs of each
group of consumers and facilitate their buying-wholesale section, retail section etc.
Merits (Consumer type):
1. This type of organisation can encourage consumers with clearly defined services.
2. The specialists can understand the needs of a particular segment of customers.
3. This type of organisation is useful to serve different type of customers.
Demerits (Consumer type):
1. Coordination between sales and other functions of marketing is difficult.
2 More man-power is required thus expenditure is high.
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8. Matrix Type:
Matrix organisation is also known as grid or project organisation. Matrix
organisation is created by merging the two or more complementary organisations,
say, purchase section and sales section. A team may be set up within the existing
organisation, to conduct a study of a particular product or design or to complete a
specific assignment in time.
MARKETING DECISION MAKING
Five major areas of analysis (5 Cs) underlie marketing decision making –
customers, company, competitors, collaborators and context. The questions to raise
in each of these areas are:
Customer
needs - What needs do we seek to satisfy?
Company
skills - What special competencies do we possess to meet those needs?
Competition - Who competes with us in meeting these needs?
Collaborators - Who should we enlist to help us and how do we motivate them?
Context -
What environmental (say, cultural, technological or legal)
factors limit
what is possible?
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UNIT – IV
MARKETING CONTROL
Marketing control refers to the measurement of the company‘s marketing
performance in terms of the sales revenue generated, market share captured, and
profit earned. Here, the actual result is compared with the standard set, to find out
the deviation and make rectifications accordingly.
TYPES OF MARKETING CONTROL
1. ANNUAL PLAN CONTROL
As the name suggests, the plans which are determined for one year for the
control of operational activities through the successful implementation of
management by objectives is termed as annual plan control.
Such programs are usually framed and controlled by the top management of
the organization.
Following are the five vital tools used under the annual plan control mechanism:
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2. PROFITABILITY CONTROL
Maximizing the profit margin has become a difficult task in today‘s highly
competitive market. This has enforced pressure on the marketing team of the
organizations too.
They now need to frame strategies for profit assessment and control in the
different product line, trade channels and territories.
Following is the process of profitability control in an organization:
3. EFFICIENCY CONTROL
The management and the marketers are regularly involved in finding out
ways to improve the task performance in the organization. These improvements
bring in efficiency and perfection in marketing operations.
The three essential mechanisms used under efficiency control are as follows:
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4. STRATEGIC CONTROL
The external environment creates a significant impact on the organization‘s
marketing strategies. To understand and align the plans with the prevailing external
environment, the organization can adopt any of the following control functions:
MARKETING CONTROL PROCESS
Marketing control is a systematic and integrated process. A marketer
follows the following steps while exercising control over the marketing operation
in an organization:
1. Determining Marketing Objectives: The initial step in marketing control is
the setting up of the marketing goals, which are in alignment with the
organizational objectives.
2. Establishing Performance Standards: To streamline the marketing
process, benchmarking is essential. Therefore, performance standards are set
for carrying out marketing operations.
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3. Comparing Results with Standard Performance: The actual marketing
performance is compared and matched with the set standards and variation is
measured.
4. Analyzing the Deviations: This difference is then examined to find out the
areas which require correction, and if the deviation exceeds the decided
range, it should be informed to the top management.
5. Rectification and Improvement: After studying the problem area
responsible for low performance, necessary steps should be taken to fill in the
gap between the actual and expected returns.
MARKETING AUDIT
The Marketing Audit refers to the comprehensive, systematic, analysis,
evaluation and the interpretation of the business marketing environment, both
internal and external, its goals, objectives, and strategies, principles to ascertain the
areas of problem and opportunities and to recommend a plan of action to enhance
the firm‘s marketing performance.
Components of Marketing Audit
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1. Macro-Environment Audit: It includes all the factors outside the firm that
influences the marketing performance. These factors are Demographic,
Economic, Environmental, Political, and Cultural.
2. Task Environment Audit: The factors closely associated with the firm such as
Markets, Customers, Competitors, Distributors and Retailers, Facilitators and
Marketing Firms, Public etc.that affects the efficiency of the marketing
programs.
3. Marketing Strategy Audit: Checking the feasibility of Business Mission,
Marketing Objectives and Goals and Marketing Strategies that have a direct
impact on the firm‘s marketing performance.
4. Marketing Organization Audit: Evaluating the performance of staff at
different levels of hierarchy.
5. Marketing Systems Audit: Maintaining and updating several marketing
systems such as Marketing Information System, Marketing Planning System,
Marketing Control System and New-Product Development System.
6. Marketing Productivity Audit: Evaluating the performance of the Marketing
activities in terms of Profitability and Cost-Effectiveness.
7. Marketing Function Audit: Keeping a check on firm‘s core competencies
such as Product, Price, Distribution, Marketing Communication and Sales
Force.
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TYPES OF MARKETING AUDIT
1. Marketing Environment Audit
Marketing Environment Audit consists of the external environment of
company. It includes natural environment, economic environment, political
environment, demographic environment, etc. The marketing audit analyses the
marketing consumer, competitors, and suppliers, so on. This audit helps the
company to make marketing strategies.
2. Marketing Strategy Audit
Marketing Strategy Audit is a critical analysis of marketing objectives and
strategies. It finds out whether the company's marketing objectives are clear and
proper. It also examines the marketing strategies of the company. This audit is
done to find out the utility of the marketing strategies.
3. Marketing Organization Audit
Marketing Organization Audit is a systematic study of the company's
organizational resources like manpower, organization, structure, employee training
and development, Research and Development facilities, motivation,
communication and working relations.
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4. Marketing Systems Audit
Marketing Systems Audit finds out the company's ability of collecting and
analyzing data. It looks for the company's ability to plan and control the marketing
activities. It also studies the company's marketing information system, planning
and control system, etc.
5. Marketing Productivity Audit
Marketing Productivity Audit finds out the profitability of the company's
products. It examines the markets. It also examines the measure to improve cost-
effectiveness.
6. Marketing Function Audit
Marketing Function Audit is a complete study of marketing functions in
relation to the product, price, promotion and place of distribution. So, it is an audit
of the marketing mix (4 P's) of the company.
METHODS OF CONDUCTING A MARKETING AUDIT
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1. Outside auditor: Company appoints an outside auditor to conduct a marketing
audit.
2. Task force audit: Company selects a team of its own senior executives to
conduct a marketing audit.
3. Self audit: In this method, marketing manager of a company conducts a
marketing audit.
4. Audit from above: Here, a senior executive of company (for example, a
Director) is appointed to conduct a marketing audit.
MARKETING RISKS
Market risk refers to the risk that an investment may face due to
fluctuations in the market. The risk is that the investment‘s value will decrease.
Also known as systematic risk, the term may also refer to a specific currency or
commodity.
METHODS OF DEALING WITH MARKETING RISKS
1. Pricing
Pricing strategies fall under the marketing umbrella. Companies must
generally pick a pricing strategy that correlates with their brand and position. Some
companies use low price strategies, while others have higher prices that tie to
value-based or high-end solutions. A low price provider risks developing a
reputation for poor quality and instilling a strong price orientation in the market.
High-end providers can flop if product or service quality doesn't measure up to the
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price point. Midrange or value-priced businesses must work especially hard to
project a desirable mix of benefits and fair prices.
2. Target Market
A target market is the group of specific customers a company targets with
products, services and promotional messaging. One marketing risk is targeting the
wrong type of customer and missing out on a more profitable market segment. A
company can alienate customers if it inaccurately defines the market and its needs.
Another risk is going after customers that don't align best with the company's
product or service strengths.
3. Research and Development
Research is used to identify what customers want and to develop products
that align with desired features and benefits. Research costs money. Thus,
investments that don't lead to useful data and results are wasteful. Additionally,
companies need to use multiple types of research and multiple studies to ensure
reliability in results. Investing in product developing or promotion based on
singular sets of data may lead to additional waste and missed opportunities.
4. Promotion
Some of the most expensive marketing risks lie in the area of promotion.
This is the use of paid advertising, unpaid public relations and selling to convey
company and product benefits to targeted customers. Companies can err by
developing messages that aren't making an impact. They may also err by selecting
the wrong media to reach the audience with the desired impact. Messages that
make no impact are wasteful. Additionally, companies sometimes inadvertently
use messages that offend targeted customers or the general public. Such mistakes
can severely damage the company brand.
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UNIT – V
Meaning of Advertising
Advertising is the action of calling public attention to an idea, good, or
service through paid announcements by an identified sponsor.
Definitions of Advertising
According to Kotler – Advertising is any paid form of non-personal
presentation & promotion of ideas, goods, or services by an identified sponsor.
According to the Advertising Association of the UK – Advertising is any
communication, usually paid-for, specifically intended to inform and/or influence
one or more people.
Characteristics of Advertising
1. Paid Form:
Advertising requires the advertiser (also called sponsor) to pay to create an
advertising message, to buy advertising media slot, and to monitor advertising
efforts.
2. Tool For Promotion:
Advertising is an element of the promotion mix of an organization.
3. One Way Communication:
Advertising is a one-way communication where brands communicate to the
customers through different mediums.
4. Personal or Non-Personal:
Advertising can be non-personal as in the case of TV, radio, or newspaper
advertisements, or highly personal as in the case of social media and other cookie-
based advertisements.
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Types of Advertising
Advertising activities can be categorized into above the line, below the line, and
through the line advertising according to their level of penetration.
Above the line advertising include activities that are largely non-targeted and
have a wide reach. Examples of above the line advertising are TV, radio, &
newspaper advertisements.
Below the line advertising include conversion focused activities which are
directed towards a specific target group. Examples of below the line advertising
are billboards, sponsorships, in-store advertising, etc.
Through the line advertising include activities which involve the use of both
ATL & BTL strategies simultaneously. These are directed towards brand
building and conversions and make use of targeted (personalized) advertisement
strategies. Examples of through the line advertising are cookie based
advertising, digital marketing strategies, etc.
Advertising activities can also be categorized into 5 types based on the
advertisement medium used. These types of advertisements are:
Print Advertising: Newspaper, magazines, & brochure advertisements, etc.
Broadcast Advertising: Television and radio advertisements.
Outdoor Advertising: Hoardings, banners, flags, wraps, etc.
Digital Advertising: Advertisements displayed over the internet and digital
devices.
Product/Brand Integration: Product placements in entertainment media like
TV show, YouTube video, etc.
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IMPORTANCE OF ADVERTISING
To The Customers
Convenience: Targeted informative advertisements make the customer‘s
decision making process easier as they get to know what suits their
requirements and budget.
Awareness: Advertising educates the customers about different products
available in the market and their features. This knowledge helps customers
compare different products and choose the best product for them.
Better Quality: Only brands advertise themselves and their products. There are
no advertisements for unbranded products. This ensures better quality to the
customers as no brand wants to waste money on false advertising.
To The Business
Awareness: Advertising increases the brand and product awareness among the
people belonging to the target market.
Brand Image: Clever advertising helps the business to form the desired brand
image and brand personality in the minds of the customers.
Product Differentiation: Advertising helps the business to differentiate its
product from those of competitors‘ and communicate its features and
advantages to the target audience.
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Increases Goodwill: Advertising reiterates brand vision and increases the
goodwill of the brand among its customers.
Value for Money: Advertising delivers the message to a wide audience and
tends to be value for money when compared to other elements of the promotion
mix.
Advantages of Advertising
Reduces Per-Unit Cost: The wide appeal of advertisements increases the
demand for the product which benefits the organization as it capitalizes on the
economies of scale.
Helps in Brand Building: Advertisements work effectively in brand building.
Brands who advertise are preferred over those which doesn‘t.
Helps in Launching New Product: Launching a new product is easy when it is
backed by an advertisement.
Boosts up Existing Customers’ Confidence In The Brand: Advertisements
boosts up existing customers‘ confidence in the brand as they get a feeling of
pride when they see an advertisement of the product or the brand they use.
Helps in Reducing Customer Turnover: A strategic advertisement for new
offers and better service helps reduce customer turnover.
Attracts New Customers: Attractive advertisements help the brand in gaining
new customers and expanding the business.
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Educates The Customers: Advertisements inform the customers about
different products existing in the market and also educates them in what they
should look for in an apt product.
Disadvantages of Advertising
Increases the Costs: Advertising is an expense to the business and is added to
the cost of the product. This cost is eventually borne by the end consumer.
Confuses the Buyer: Too many advertisements with similar claims often
confuses the buyer in what to buy and should he buy the product or not.
Is Sometimes Misleading: Some advertisements use smart strategies to
mislead the customers.
Only For Big Businesses: Advertising is a costly affair and only big businesses
can afford it. This makes small businesses out of competition with big
businesses who get to enjoy a monopoly in the market.
Encourages The Sale Of Inferior Products: Effective advertisements even
lead to the sale of inferior products which aren‘t good for the consumers.
ADVERTISING STRATEGY
An advertising strategy is a plan to reach and persuade a customer to
buy a product or a service.
A practical product assessment, market definition, media analysis, and
budgetary choices result in an excellent advertising plan, which is part of your
marketing plan.
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The steps in developing an advertising strategy include:
1. Identifying the target audience
2. Determining the role of advertising in the promotional mix
3. Setting advertising objectives and budget size
4. Selecting the creative strategy
5. Determining the media and programming schedule
6. Implementing the advertising program
7. Measuring its effectiveness
ADVERTISEMENT COPY
INTRODUCTION
The message is the heart of advertising.
Copy refers to the reading matter that forms the text of the advertisement.
Copy includes words, sentences, paragraphs, subheads and headlines
and figures that are found in an advertisement.
A Good advertisement copy must make people to see it, to read it, to
understand it, to believe it and to buy the product.
The AIDA formula is very important in advertisement copy.
AIDAS = Attention, Interest, Desire, Action, Satisfaction or Sale
MEANING OF ADVERTISEMENT COPY
An advertisement copy is the written or spoken message in an
advertisement including words, sentences, figures aimed to convey a desired
message to the public.
The written matter and message used by the advertiser to convey his
desired idea is known as advertisement copy.
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ELEMENTS OF AN ADVERTISEMENT COPY
1. Attention value = To attract the attention of readers
2. Suggestive value = The advertisement should suggest the advantages of
buying a particular products.
3. Conviction Value = Advertisement should be true (facts) and that could be
readily believed.
4. Sentimental Value = Advertisement should respect the sentiments and
feelings of the people.
5. Educative value = Advertisement gives new information, suggestion and
knowledge to people and directs them to go for the product.
6. Memorizing Value = A good impression on the reader’s mind.
7. Instinctive value - The matter or message must be arranged in such a way
that the reader is able to understand and act on the message.
MEDIA PLANNING
Media planning is the process by which marketers determine where, when,
and how often they will run an advertisement in order to maximize engagements
and ROI. The media plan might split advertising spend and resources between
various online and offline channels such as broadcast, print, paid ads, video ads or
native content.
KINDS OF MEDIA
I. Indoor Advertising
A. Press Media i) Newspaper ii) Magazine
B. Radio
C. Television
D. Film
II. Outdoor Advertising
A. Mural (Posters)
B. Advertising Board
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C. Vehicular
D. Printed Display
E. Travelling Display
F. Electric Display
G. Sky Advertising
H. Sandwich-man
I. Handbills (leaflets)
III. Direct Advertising or Direct Mail
A. Sales letters
B. Circular letters
C. Booklets and catalogues
D. Folders
E. Package inserts
F. Store publications
IV. Promotional Advertising
A. Window display
B. Interior display
C. Show-rooms
D. Exhibitions
MEASURING ADVERTISING EFFECTIVENESS
I. Pre-testing – If an advertising campaign is tested before it is run.
1. Concept testing – It is a major feature of creative strategy which has a
bearing on the ultimate effectiveness of advertising. Concept testing would usually
involve not more than 50 to 100 respondents using techniques such as a)
qualitative interviews b) free association test c) statement comparison
2. Theme testing – The themes can be classified as utilitarian (useful),
focus, informative, non-specific, achievement orientation, descriptive and
projective, new product or idea.
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3. Copy testing – The basic purpose of copy testing is to establish whether
the message content and presentation are likely to perform their intended task
efficiently and knowing the kind of changes and improvements that may be
helpful. Copy testing involves the following – consumer jury test, direct mail test
(post card test), portfolio test, and psychological scoring and mechanical or
laboratory test.
II. Post-testing – It is designed to measure effectiveness of advertisements after
they have already been run and also to find reasons for its performance.
Techniques of Post Testing:
1. Recall or impact test 2. Recognition test or Starch test or readership test 3.
Enquiry test 4. Triple association 5. Sales Effect test 6. Sales Results test
