5. Special Studies in Marketing

BMS 2012

Reema Rijhwani

Communication & Advertising

Communication

• It is an activity of conveying meaningful message

• It requires a sender and a receiver • Communication can be across

geographies• Personal & Non Personal • Form – Verbal & Non Verbal • Aided by technology

Feedback

• Information Source – Originator of the information. Eg. Company

• Message – The content / information / meaning to be passed on to the target audience

• Transmitter – Translating message via a medium. Eg. Print ad copy, TV ad etc

• Signal – Sending of the message to appropriate channel. Eg. OOH, TV etc

• Channels – Promotion tools

• Receiver – Encoding of the message based on knowledge, perceptions, beliefs etc

• Destination – End destination of the message via word of mouth, environment, surrounding, etc

• Noise – Disturbances created by competition, others opinions, beliefs etc

Steps for Effective Communication

1. Target Audience 2. Determine Objectives 3. Design Message 4. Select Channels 5. Establish Budgets 6. Decide on Media Mix7. Measure Results

1. Determine Target Audience • Customer Purchase New triers Lapsers Loyalists

• Mass vs Niche

• Local vs Global

• Highly Involved vs Low involved

2. Determine Objectives • AIDA Theory

Behavior - DO

Cognitive - THINK

Affective - FEEL

• Hierarchy of Effects Model

• Innovation Adoption Model

Behavior - DO

Cognitive - THINK

Affective - FEEL

Awareness

Adoption

Trial

Evaluation

Interest

3. Design Message • Message Content – Rational, Emotional,

Economical

• Message Format – Print, TV, Hoardings etc

• Message Structure – Copy, Order of communications etc

• Message Source – Opinions Leaders, Celebrity, Experts, company etc.

4. Select Channels• Personal – Face to Face, Presentations, Sales

Rep, Social Channels,

• Non Personal – Print Media, Network Media, Broadcast Media, Electronic Media, Display Media etc.

5. Establish Budgets • Affordable Method – What a company can afford

• Percentage of sales – % of total sales revenue

• Competitive parity – Based on competitors budget and spending power

• Objective & Task Method – Define objective & task and allocate budget accordingly

6. Deciding on Communication Mix Important to note – a.Type of Product and Marketb.PLC stagec. Competitiond.Target Group

7. Measure Results*

Advertising Agencies

1. Advertising Agency Structure2. Functions 3. Types4. Features

1st Ad

Structure

Functions

1: Account Handling• Manages the relationship between the Client

and the Agency• Within the Agency – represents interests of

Client• Represents interests of Agency when talking to

the Client• Usually responsible for finding and developing

new business

2: The Creative Department• Creates ideas, concepts and sometimes finished

art for advertising, literature and other marketing materials

• Should represent point of view of the consumer• May liaise with outside suppliers such as

illustrators, photographers, writers, web designers and film producers

3:The Production Department• Ensures that finished artwork is delivered to the

appropriate media by the deadlines• May also source specialist materials and

suppliers e.g. specialist printers and paper• May include a Traffic Department which

progresses jobs through the agency to ensure jobs are completed on schedule

• May include Studio Manager, Mac Operators, Finished Artists etc

4:The Media DepartmentMost agencies today use an outside consultancy

for the media requirements. Three functions need to be addressed.

• Media Research– Identify which media reach your target

audience most effectively• Media Planning

– Planning the best media mix and timings to achieve the client’s marketing objectives

• Media Buying– Getting the best value for money out of the

client’s media budget. Involves considerable negotiating skills

5:The Research DepartmentEither in-house or outsource to market research

agenciesCarry out Quantitative or Qualitative research in

order to establish communication objectivesThey derive inputs from the brief or client

objectives first to determine the need

Types

• Full Service Agency

• Limited Service Agency

• Specialist Agency

• In House Agency

• Interactive Agency

Agencies World Wide

Omnicom Group – John Wren• Omnicom group includes – BBDOs, DDB

Worldwide, TBWA Worldwide, Element 79 Partners, Goodby Silverstein & Partners, Arnell Group, GSD&M, Roberts & Tarlow, Zimmerman Advertising, Merkley & Partners, Martin/Williams, Porter Novelli.

WPP – Sir Martin Sorell• WPP group includes - Grey Global Group,

Ogilvy & Mather Worldwide, Young & RubicamJWT, Hill & Knowlton, Burson-Marsteller, Cohn & Wolfe.

Interpublic Group of Companies Inc.• IPG includes - Campbell Mithun, Campbell-

Ewald, Dailey & Associates, Deutsch Inc., Draftfcb, Hill Holliday, Lowe Worldwide, Mullen Advertising, The Martin Agency, McCann-Erickson.

Publicis Group - Maurice Lévy• Publicis Includes - Bartle Bogle Hegarty (49%

owned), Fallon Worldwide, Leo Burnett Worldwide, Publicis & Hal Riney, Saatchi and Saatchi.

Dentsu Incorporated – Tokyo based Agency

Advertisements

Forms of Ads

• Advocacy• Comparative• Cooperative • Direct-Mail • Informational

• Institutional• Persuasive• Product• Reminder• Specialty• Point-of-Purchase

Types of Ads• Fear• Rational • Emotional• Social • Humor• Ethical• Negative

DAGMAR• Defining Advertising Goals for Measured Advertising Results

• DAGMAR model suggests that the ultimate objective of advertising must carry a consumer through four levels of understanding: from unawareness to Awareness—the consumer must first be aware of a brand or company Comprehension—he or she must have a comprehension of what the product is and its benefits; Conviction—he or she must arrive at the mental disposition or conviction to buys the brand; Action—finally, he or she actually buy that product.

Integrated Marketing Communication

• Strategic process to produce a consistent brand message at each customer touch point.

• Use multiple communication modes to foster awareness of product / services by informing people about features and benefits, and moving them to make a purchase.

• Needed to break clutter, touch consumers every where, create brand image, etc

Alternatives - • Cost• Target Audience • Message

Characteristics • Product

Characteristics • PLC• Company • Objectives

Marketing Communication Process - AKIPIS

• Create Awareness • Provide knowledge • Create impression • Attain preferred position in customer’s mind• Create purchase intention • Make a sale

Communication Vehicle

One Way Two Way Delayed Two Interactive

Personalized

Mass

Media

Direct

Web

Face 2 Face

Communication

Response

IMC -

Thank You