Chapter 15 :

Video 1: Marketing communications

● Marketing Communications
○ The idea is to get all promotional mix elements to work together
■ Promotion is another P in the 4 Ps in the marketing mix
■ And includes all communications that informs and persuades
buyers
■ A promotional strategy is a plan for optimal use of all elements of
promotion to elicit a particular response
■ The main focus is to convince the buyer that the companies
product offer a competitive advantage
■ A set a feature and benefits over others offering.
○ Promotional mix
■ There are five elements of the promotional mix
● Advertising (mass communications)
○ Is any form of impersonal paid mass
communications
■ With it marketers can reach large audiences
■ Even Though it may involve high cost
because of the mass appeal, the cost per
person is rather small
■ Also marketers have complete control over
the message
■ While this is an appealing proposition, the
flip side is that it has lower credibility
■ The audience realizes that it is paid
communications controlled by the marketers
■ A commercial during a prime time tv show is
a good example
● Public relations (unpaid effective but limited control)
○ Entails communicating with customers, suppliers,
employees and the community with the intent of
creating favorable publicity
■ While expenses are involved in running the
operation it isn't paid communication
■ Companies instead try to get exposure
through media relations, press release and
other ways to reach customers
■ Whiles these may be written in a positive
tone, any media outlet that run the story are
free to put these in their own words
 ■ This lack of control has a positive side to it
to
■ Consumers are more likely to trust
respectable media outlets on what they
have to share
■ A newview done by the new york times on a
new brand of cars is a examples of a public
relation effort
● Sales Promotion (Can have a variety of objects)
○ Sales promotions include all activities, other than
advertising and public relation that focus on
promoting sales with the internet of inducing trial fro
new products increase sales or getting rid of extra
inventory
■ Typically these teen to have a short term
orientation, coupons rebates discount,
sweepstakes, ect are all examples of sales
promotions

● Personal selling (expensive face to face high impact)

○ Refers to in person selling
■ Typically for big ticket purchase or for
business market, personal selling can be
very effective
■ In business markets especially, companies
may rely on advertising to do the initial work
of informing the customers but use personal
selling in the later stages of the purchase
process
■ This gives an opportunity to the sales force
to impress on their customers the values of
their offering and to negotiate the deals
■ Although this is expensive, the high cost
can be justified by the size of the
transaction
● Social media
○ Is a relatively recent addition to the promotional mix
■ Traditionally the marketers have control
over their brands communication efforts
■ However with the advent of social media,
that control has shifted to some extent to
the consumer who are no long passive
recipients of information
 ■ With social media they can control the
information they wish to sees and create
content that they can share with other
consumers and also marketers
■ The information moves at an accelerated
pace and gets amplified as long as it
catches the fancy of the social media
participants
■ marketers who can appreciate the shift are
more likely to success by participating and
facilitating this communication rather than
dictating the content
■ Facebook, twitter, youtube and linkedin are
some of the bigger social media platforms
○ Integrated marketing communications (IMC)
■ Aims at aligning al elements of the promotional mix to get the best
results
Video 2: Promotional goals and AIDA concept
● Promotional Goals
○ In the process of serving their customers marketers need to impress on
them the values their products offer
○ This is accomplished by marketing communications
○ Depending on the stage of the product life cycle however the task may
vary
○ These tasks are as follow
■ Infroming
● Is typically the task of the rarely stages of the product life
cycle
○ When new brands are introduce the market is not
aware what the brands have to offer
○ So the focus is on informing the market
○ Sometimes the focus need not even be on the
companies own brand but on instead on creating
the primary demand of the product
■ Persuading
● In the late introduction growth and early maturity stages,
the marketers shift their focus to persuading the market to
by their product
○ Marketing communications may emphasis the
superiority of their products of their competitors in
an effort to convince the buyer to patronize their
brands
■ Reminding ‘
 ● Ln the later stage of the product life cycle all brands have
well established images
○ The market is familiar with what they have to offer
the goal then is to just remind the consumers in
creative ways to stay on top of their minds
■ Connection entails creating ongoing
relationship with the customers
■ Marketers may use a variety of tactics to
make their offering an integral part of their
buyers lives
■ Although it is not easy to accomplish this,
social media are particularly adept on
achieving this goal
■ It is important to understand that the same
promotional campaign may be aimed at
accomplishing more than one objective
■ Thus it is possible to connect to connect or
build relationship with customers and at the
same time remind them about the brand

● Promotional Goals and AIDA COncept

○ Marketers also use the AIDA framework to guide their communication
strategy
○ It refers to the sequential steps of creating attention, interest desire and
action in any communication
■ Attention
● The advertiser must first gain the attention of the target
market
○ Creativity is important in getting this attention
because consumers are flooded with commercial
messages
○ The goal is to create awareness
■ Interest ‘
● The next step is creating an interest in the product
● The message has to be appealing enough to capture the
consumers fancy’s
■ Desire
● The third step is creating a desire to buy the product, the
goal is for the message to be convincing enough to create
consumer preference for the brand
■ Action
● The final step is action
● Communication should have a call to action prodding the
consumers to purchase the product
 ● As can be seen, a successful promotion should move the
consumers through all stages to the actual purchase of the
product
● A SINGLE EXPOSURE MAY NOT BE ABLE TO
ACCOMPLISH THIS GOAL BUT THIS SHould be the goal
for any promotional campaign

Video 3 : Factors affecting promotional Mix

● Promotional mix can vary widely depending on a variety of factors
○ Nature of the product (business vs consumer: mass vs customized)
■ Consumer products are often mass produced with little to none
customization
● Mass media like advertising works well
● Business products however require a fair amount of
customization
● This customization then needs to be explained to the
buyers so personal selling is more suited for this
○ Stages in the products life cycle (heavy informative advertising in the
beginning)
■ in the early stages the emphasis is on advertising and public
relation to build awareness and sales promotion to induce trial
● Personal selling is useful for obtaining distribution
● In the growth stage, advertising and public relations are
used to emphasize the products differential advantage but
sales promotional effort to induce trial can be reduce
● During Maturity, awareness levels are high but competition
is more intense so persuasive and reminder advertise
continue and sales promotions comes back with an effort
to increase sales
● Finally during decline advertising is severely curtailed but
personal selling effort to continue at retail level
■ More importantly at each successive stage in a products life cycle
the objective of the each promotional elements changes
○ Types of buying decisions (simple vs elaborate)
■ Simple decision like routine purchases of low priced items do not
require any deliberation
■ Consumers are familiar with what different brands have to offer
■ Here advertising particular reminder advertising can be very
effective
■ Sales promotions can also be effective in increasing sales
■ However when it is a high involvement product particularly one
that is not a high routine purchase consumers are likely to seek
assistance personal selling can be very helpful the same is true for
shopping goods
 ■ In the context of business markets, advertising can be cheaper
and maybe used in early stages of the buying process to create
awareness among buyers
■ However in later stages personal selling may be more effective to
convince the buyer and close the deal
○ Push and pull strategies
■ Product flow down the channel from manufacture to say
wholesalers and onto retailers
■ One option is to use a push strategy to force the product through
the channel
■ Push strategy:
● This may be accomplished by giving incentives like trade
discounts to entice them to carry the product
● Once that happens they would be motivated ot push it
further down the channel with similar discounts or
promotions until it gets to the end consumer
■ Personal selling and trade and sales promotions are used in push
strategies
● An alternative is the pull strategy where manufacture try to
appeal to the consumer directly
● When that happens consumer are likely to ask the retailers
for the products and for retailers to stop the product they
have to request the same from higher up in the channel in
this case the product is being pulled in the channel by the
end consumer
■ Advertising is a very effective pull strategy most company=ies
typically adopt a mix of push and pull strategies

Chapter 16 advertising public relations and sales promotion

Video 1: Advertising
● Advertising is impersonal one way mass communication paid for by the markets
to increase sales in the long run
○ We know that advertising increases sales but the exact response is
difficult to asses
● Advertising response functions tends to be an elongated “S”
○ Take a look at the s shaped figure in it, the advertising response function
looks like an elongated s. Let's try to understand why that may be the
case
 ■
■ There is likely to be some sales even in the absence of advertising
which explains the y intercept then as the advertising is increase,
it may not have as much impact on sales initially because it maybe
unnoticeable before it hits a certain threshold level. Till then the
curve remains relatively flat. The middle portion of the elongated s
is marked as a relatively high effectiveness. In this segment an
increase in advertising is likely to increase sales. Now we also
know this cannot continue endlessly so there has to be an upper
boundary. So the response curve asymptomatically approaches
this boundary. So towards the higher levels of advertising the
sales curve is flat again resulting in the elongated s shaped curve
○ Most companies operate in the zone of high effectiveness
○ This is a crude approximation of the effects of advertising on sales
○ The challenge however as companies increase their advertising budgets
it is difficult to gauge when the response may slow down
○ Also the effect of other factors create interference on advertising impacts
on sales
○ So determining the optimal level of advertising is not easy

Video 2: Major types of advertising

● There are two major types of advertising s
○ Institutional advertisements
■ Also called corporate advertising focuses on promoting the corporation as
a whole
● This makes sense when a company is using a parent brand name
for all its products as in the case Ford motor company
● It may also be used of advocacy advertising where companies
promote a positive image or try to overcome negative perceptions
○ Prominent gas companies often use advocacy advertising
to impress consumers about the good work they are doing
to help the environment because their products are
perceived as damaging to the environment
○ Product advertising
■ Focus on promoting individual products
■ There are three types of product advertising
● Pioneer advertising for primary demand: informative: prominent in
introductory stage
○ Is used during the early stages of the product life cycle
■ Because the product is they new the focus is on
explaining the products class and not on promoting
the specific brand
● Soda stream is looking to break into the
large soda drink market but has a very
different product position. It has the
customer prepare the product rather than
purchase the finished product
● To launch the product they enlisted scarlett
johansson and ran an ad during the super
bowl
● Competitive advertising: focused on persuasion to increase recall,
preference, often appeals to emotions, prominent in growth stage
○ Is most appropriate when a product enters growth stage
○ Other competitors come into the market and companies
shift their focus on convince the customers to buy their
own brands by creating valuable attitudes towards their
brands
■ Subway is known to most consumers so the
advertising is aimed on creating favorable
impressions so they decide on lunch at subway
rather than competing fast food restaurants like
mcdonalds or kfc
■
● Comparative advertising compares two or more brands, good for
lesser brands, more prominent in highly competitive markets
○ Companies may also promote their brands by comparing
them to competitor brands and is highly effective
○ This is a particularly useful strategy for smaller brans that
can make a convince case and aspire for stronger position
○ It is rarely an appealing strategy for bigger brands because
they don't have much to gan by comparing themselves to
lesser brands
○ Comparative advertising with an explicit message of a
competing brand is not legal in many countries.
■ When pepsi trailed coca cola they decided to
deploy competitive advertising with their take the
pepsi challenge champagne
Video 3: Creative Decision in Advertising

● An advertising budget maybe set in a variety of way

● One way is to follow the percentage of sales strategy where companies assign a fixed
percentage of their sales fro their advertising budget
● It is a straightforward and reasonable approach and is used by a large number of
organizations
● The problem of this approach during a downturn of sales, this method would reduce the
size of the advertising budget when more may be needed
● An alt approach is competitive parity that is spending at a level comparable to
competitors. In some why it gives a sense of equality to all participants, every company
is in a different position with varying emphasis on advertising
● AS such, use of parody as a benchmark can be questionable
● A more systematic way of proceeding is a DAGMAR
○ *Defining advertising goals for measured advertising results and AIDA (follow * to
avoid lecture notes)
■ The process starts with defining the goals advertising is expected to
accomplish
● Ex. a company may want to increase liking for its brand by 10%.
An analysis is then done by determining the number of
impressions needed and the cost of each impression, of course
the simplistic representation here becomes quite complicated in
practice which may explain why most companies use this
approach. Atht e end of the day it is useful
■ Now let's look at the steps involved in creating advertisements
● *Step 1. Identifying products and benefits
○ An attribute is a characteristic of the product like the size of
a car's engine. The benefit is what customers get out of it
■ Ex. a bigger engine may mean a more thrilling ride.
There seems to be some consensus that
advertising should focus more on benefits than on
attributes.
● Step 2. Developing advertising appeals (savings fear admiration
convenience fun ect)
○ This refer to what specifically should be stress
○ Ex. The thrill of the ride may have a fun and pleasure
appeal which may be emphasized.
○ Other common appeals include money savings, health,
fear, convenience, admiration of others, environmental
consciousness, ect and this is not an exhaustive list by any
means
 ○ The advertising appeal that is chosen often becomes what
is commonly called the brands unique selling proposition of
USP
■ Something that is special about the brand which is
emphasized on an ongoing basis
● Step 3*Executing the message (lifestyle slice of life humor
scientific fantasy image ect)
○ Once the appeal or message has been establish the next
step is to determine what would be the best way to convey
this message
○ Since consumers are flooded with advertisements it is
important that the creative is strong and effective tot get
noticed and eventually influence the buyer behavior
○ In other words the ad should be able to move the
consumer through the various stages of AIDA
■ Attention interest, desire and action
○ Some Of the common execution styles include fantasy,
humor, demonstration, scientific defense and testimonial
○ Sometimes advertiser use a lifestyle appeal to show how
the product fits into the consumer lifestyles or may depict
how the product ti s used in a normal setting which is
refereed to slice of life appeal
○ These categories are not exhausted and other execution
styles may be used
● *Step 4: Postcamapign evaluation
○ The final step is evaluating the success of the campaign,
this is typically done by comparing pre and post campaign
standing on the variable of interest.
○ The higher liking for the brand of our example
○ Data may come from internal sources as in the case of
product sales and market shares
○ Or surveys may be conducted if the respondents attitudes
and preference are of interest

Video 4: Media decisions in advertising

● Advertising medias decisions in advertising
● Several decision need to be made in the context of selecting media for advertising
including the choice of the appropriate media, the media mix and med ia schedule
● These decision are referred to as media planning
● We now take a look at the components of media planing
○ Media types
■ There are numerous media options available
 ● Newspapers, magazines, television, (including infomercials) radio,
outdoor advertising internet alternative
○ Each offers its own set of advantages.
○ News papers are cheap and offer geographic selectivity
○ Magazines provide better reproduction, high pass along
rates, longer lives for the advertisements and can be highly
targeted
○ Radio is low cost and highly localized
○ Television can be expensive but it has a higher impact. It is
more engaging and that makes it easier to demonstrate the
products . it also provides wide coverage which is
particularly appealing for nationwide product launches
○ The Internet is a new medium that offers highly
customizable options and to monitor the performance on a
real time basis.
○ Media selection considerations
■ Media mix
● Refers to the emphasis placed on all media outlets used and the
budget allocated to those. There is not perfect mix and numerous
options are possible but to determine the efficacy of a media mix
marketers look at a variety of criteria
○ cost , reach, frequency, audience, selectivity
■ The cost per contact. Is the cost of reaching each
person in the audience
■ Most media outlets make this number readily
available to their advertisers
■ Cost per thousand or CPM is the most commonly
used metric for this
■ Cost per click is often used as a key metric for the
online media
■ Reach is another criteria that is relevant and refers
to how many people does the medium have access
to
● Reach for television program is measured
using gross rating points or GRPS
○ GRPs refers to the percentage of all
tv audience at any point of time that
is tuned to a specific program
○ Since a single advertising is unlikely
to be sufficient, marketers aim to
expose multiple exposures across
the various media they chooe for
their campaign
 ■ Once again most media outlets provide information
on the number of profiles of their audience
■ Markers may be interested in media with wider
reach so that their media mix is not to fragmented
■ Frequency refers to the number of times an
individual is exposed to an advertisement
■ A good media mix has to also factor in audience
selectivity for instance the ability to reach the target
market
■ Cost per thousand may be lower for time magazine
but if the target audience is architects then
architectural digest’s higher cost may be justified
because of its audience selectivity
■ Advertiser have to be concerned about the noise
level that refers to the interference of everything
else
■ Noise level may be vary high for radio
advertisement because of the distractions front
other radio programs advertisements from other
sources and attention people pay to the tasks they
are working on while they ar working on
● Media scheduling
○ Important consideration on where to place advertising. The
same amount of advertisements can be scheduled
differently to achieve varying results
■ Continuous, flighted and pulsing, (a combination of
the first two)
● Advertisements are run in a steady pass
through advertisement campaign. This
works very well for mature products
● As opposed to this in a flighted media
schedule ads are run heavily in short bursts
with no ads between these bursts
● The concentrated bursts help raise the
communication well above the noise level
and help to get the markets attention
● Pulsing media schedule is a combination of
continuous and lighter and it translate to a
continuous schedule at a lower amplitude
combined with a heavier advertising bursts
● Retail store may use this with bursts during
the heavy shopping through the year
 ● Seasonal media schedule matches
advertising with the seasonality of sales with
certain products
Video 5: Public Relations

● Public relations aims to impact public attitudes and execute programs to gain their
understanding and acceptance
● The hope is to get favorable publicity for the company and its products.
○ Proactive communication that is not paid for, high on credibility but less under
control
■ Marketers do this by influencing articles and editorials in media Through
their communication through the media and press releases.
■ Some of the functions of public relations include corporate
communication, product publicity employee and investor relations,
lobbying and management of the crisis that may take place
● includes press relations, product publicity and lobbying
● Major tools include
○ New product publicity
■ New products especially ones that are innovative
make appealing stories for the press as such new
product publicity os effective and used extensively
○ Product placement
■ Entails getting the brand to appear in a tv show,
movie, radio program ect as part of the narrative
■ It is a growing industry
■ The advent of digital video recorders have made it
possible for people to record their favorite shows
and movies when they play back their recording,
they often fast forward through the commercials
even when they are watching live programs they
may change channels during the commercial break
■ This is referred to as zipping and zapping of
commercials respectively.
■ The main appeal of placements is because the
brands are oven into the storyline they will be
noticed and also appropriate placements can really
improve the sales of brands as in the case of ray
ban aviators after tom cruise worse these
sunglasses in top gone, reese's pieces sales
surged after the release of tv and chevy camaro
cars after their use in the movie transformers
○ Consumer education
■ In some industries as in financial planning
educating the consumers may be helpful in
 increasing sales many companies offer free
seminars and workshops to capitalize on this
○ Sponsorships
■ Sponsorship of an event can create a strong link
between the brand and the nature of the event
therefore major manufacturer of musical
instruments often sponsor concerts of leading
bands
○ internet web sales and social media
■ Company websites and social media are used
increasingly to provide read access to companies
news
■ New product launches , financial reports and other
information such as service location s
■ Companies also use social media to get favorable
stories about their brands to their target market
■ If any information catches the fancy of any
consumer, they automatically share it with other
making social media particularly for public relations

VIdeo 6: Sales Promotions

● These marketing efforts typically have a short term orientation intended to induce
product trial and additional sales
○ Sales promotions typically have a short term orientation they are intended to
include trial of new product and increase sales of existing products
● Consumer promotions (directed at consumers)
○ We now look at someone of the more popular consumer promotions tool s
■ Coupons and rebates
● Coupons often offered through free standing inserts FSI in
newspapers are good ways to reduce price to the buyers without
doing a permanent price cost
● Typically valid at a fixed time inducing the buyer to purchase right
away.
● Rebates also offer temporary price cuts but they typically need to
be mailed in
● As many as half the consumers who buy the product because of
rebated, fail to complete the paperwork to get the rebate
● This silage factor works in the advantage of the marketers
■ Premiums
● Extra items offered as incentives for the purchase of the original
items
 ● They may be used to reward consumers or to give consumers
new product the marketers want them to buy
○ So a toothbrush may be offered with toothpaste
■ Loyalty programs
● Are created to induce loyalty
● Consumers get some reward after purchasing a product after
multiple times
● Frequent flyer programs
■ Point of purchase promotion (and sampling)
● Including sampling are promotions done at the point of purchase
● These are effective for products consumers can make up their
mind at the store.
● Point of purchase or POP displays and product sampling are
examples of this type of promotions
● Trade Promotion directed at intermediates
○ ARE DIRECTED TOWARDS TRADERS or members of distribution channels
○ Common types of trade promotions:
■ Trade allowance
● Is a discount given by manufacturer to wholesaler and retailers for
doing something specific that helps the manufacturer
○ Examples include getting additional shelf space or
premium locatio nin the retail outles
■ Push money vs pull for advertising
● Is useful when manufacturer are emphasizing a push strategies
● Give push money as a bonus to push product s
● Ex is requiring sales people on the retail floor to recommend
manufacturer brands when buyers seek advice from them
■ Training
● Sometimes manufacturers will train retail sales people especially
is the product is complex of course, in the course of the training
they are likely to impress on the sales people the superiority of
their own brand s
● It is important to understand regardless of the specific approach
used, sales promotion is for the most part, short term oriented
even though it will have a spill over long term effect

Chapter 17
Video 1: PERSONAL SELLING
● Face to face communication
○ Personal selling is paid for face to face communication aimed at informing
and influence the customers to increase customer sales
○ Can be expensive so it is better utilized when the transaction value is
huge
 ○ Expensive so it is useful if
■ Product has high transactions value
● Large values being sold
● A large customer base may be better served with
advertising but personal selling can be more cost effective
for few customers
■ Product is custom made or complex
■ There are few customers
■ The buyer is later stages of purchase power
● It is more effective in the later stages of the purchase
process
● The old style selling used a well rehearsed canned
approach which gave a predesigned sale pitch with the
sole aim of making the sale
● Newer thinking is more aligned with the marketing concept
and emphasizes on developing relationships with the
buyers
● Relationship selling
○ Sales people work with buys in consultative roles, they try to understand
customers needs and offer solutions accordingly.
■ With this approach salespeople and buyers become partners in
solving he buyers problems leading to a long relationship between
the two
● Focuses on long term and therefore working with
customers as partners with extensive consultation and
follow up
Video 2:

● In customer relationship management or CRM business put customers on the center

stage and manage every contract with them with an intent of understanding their needs
and collecting relative information and leveraging this date to better serve the customers
and increase sales
○ Crm is a four step process
■ Identify customer relationship s
● Companies running a successful CRM program are customer
centric and develop their companies responses around the needs
and wants around their customers
● Collecting good data is critical to accomplishing this
● This is referred to as learning
■ Understand interactions with current customers
● Understanding its interactions with its customers is the very
foundation of CRM t
 ● Therefore companies identify all situations where customers can
interact with the company, not just personal interaction but also
online and exposure to advertising
● Point of sales interactions are useful in understanding customer
behaviors, these are referred to as touch points
● CRM aims to manage interaction tal all touchpoints to make sure
they are positive experiences for all its customers.
■ Capture customer data
● Companies then aim to capture the data at all touchpoints this
data is rich and available for all customers making it a very
valuable resource
● Companies often lay out a data collection plan from the time
customers start any interaction and continue it to all ongoing
interactions
● This data can come from a variety of sources and can therefore be
fragmented
● Companies rely on knowledge management to create a
centralized database that can be shared by everyone
■ Leverage customer and data mining
● Once this data is consolidating data mining can be used to identify
trends and relationships between different marketing variables,
customer behaviors and sales
● This data can be leverage in a variety of ways we look at some of
these briefly
● Campaign management is using the interaction data to create an
effective communication campaign
● Companies also use it to cultivate ti and retaining loyal customers
by studying them and customizing their preference and rewarding
them for multiple purchases or patronages over a longer duration
● By studying the needs of their loyal customer who have a
favorable opinion of the company anyway it can cross sell other
products and services
● The same is true for inducing a new trial of products the company
may develop finally by having a detailed understanding of their
customers companies can offer target communications about their
products and services
● Data warehouse data mining
○ The key is to understand that for companies, good quality data and building
ongoing relationships with their customers provides a solid foundation for better
serving their customers' needs by creating a variety of customer initiatives.