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8/13/2019 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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