Advertising

Promotion

Marketing activities used to communicate to

consumers about the organization, its products,
its activities, and to directly or indirectly
accelerate exchanges.
 Basic Promotional Objectives
Informing

BASIC
PROMOTION
OBJECTIVES

Persuading Reminding
 Objectives of Promotion

1. Create Awareness
2. Stimulate Demand
3. Encourage Product Trial
4. Identify Prospects
5. Retain Loyal Customers
6. Facilitate Reseller Support
7. Combat Competitive Promotional Efforts
8. Reduce Sales Fluctuations
Comparison of Push and Pull
Promotional Policies
PUSH POLICY PULL POLICY

Producer Producer

products from products from products from

Promotes to Promotes to Promotes to

Demands
Wholesaler Wholesaler

Promotes to

Demands
Retailer Retailer

Demands
Consumer Consumer

= Flow of communication
= Flow of product
 Marketing Mix
Marketing Mix = 4 P‘s

1. Product
2. Price
3. Place/distribution
4. Promotion = Marketing Communication
Marketing Communications Mix
The objective of Marketing communication Mix is
to ensure communicating right message to right
people.

The Marketing Communications Mix is the

specific mix of ,
1. Advertising,
2. Personal Selling,
3. Sales Promotion,
4. Public relations,
5. Direct Marketing
 Promotion Mix

Direct Marketing Advertising

Sales Promotion

Personal Selling Public Relation

Individual Communication Mass Communication

1. Personal selling:- Face to face interaction with one or more
purchaser for the purpose of making sale.

2. Direct marketing :- Use of mail, telephone, and other non-

personal contact tools to communicate with specific
customer.

3. Sales promotion :- Short term incentives to encourage trial

or purchase of a product / service.

4. Public relations / Publicity :- A variety of programs

designed to promote product, or company’s image.

5. Advertising :- Any paid form of non personal presentation

by an identified sponsor.
 Promotional Tools
Advertising Sales Publicity Personal Direct
Promotion Selling Marketing

Print & broad Contests, Press kit, Sales Catalogs,

cast, Moving Lotteries, Gifts, Speeches, meeting, Mailings,
picture, Posters, Samples, Seminars, Sales Telemarketing,
POP, Audio Demonstration, Annual presentation, Electronic
visual material, Couponing, low Report, fair & trade Shopping, TV
Symbols and interest Sponsorship, shows. shopping.
logos, financing, etc. Company
Billboards, magazine, etc.
Packing, etc.
 What is Advertising?
It is any paid form of non – personal presentation
and promotion of ideas, goods, services by an
identified sponsor.

Advertising is any controlled form of non-personal

presentation and promotion of ideas, goods and
services by an identified sponsor, that is used to
inform and persuade the selected markets.
 Objectives of Advertising
1. Trial The purpose of the trial objective is to encourage
customers to make an initial purchase of a new product.
2. Continuity is a strategy to keep current customers using a
particular product.
3. Brand Switching Companies adopt brand switching as an
objective when they want customers to switch from
competitors' brands to their brands.
4. Switchback Companies subscribe to this advertising
objective when they want to get back former users of their
product brand.
 Purpose / Functions of Advertising
Three basic purposes / Functions of advertising are,
1. To inform
2. To persuade
3. To remind
 1. To inform
a) A new product may be introduced.

b) Shows new uses for an old product.

c) Shows a price change in a product.

d) Shows how a product works.

e) Builds an image for the company.

f) Describes available services.

 2. To persuade
a) Persuading ads try to convince a buyer to purchase
the product or service NOW.

b) Encourages switching to an identified brand instead

of a lesser-known brand.

c) Confirm a purchase so the customer comes back

again and again.

d) May want to personally talk to the customer

 3. To remind
a) Identifies where the product or service may be
purchased.

b) Shows a need the customer already knows for the

product.

c) Reaffirms the importance of the product or service.

 Importance of Advertising
1. Benefits to Manufacturers

2. Benefits to Retailers

3. Benefits to Customers
 1. Benefits to Manufacturers
a) It increases the demand of the products.

b) It create pressure on the retailer to stock the goods which

have demand.

c) Mass production needs mass selling efforts which are

possible only by advertising.

d) It tends to stabilize the selling price and this can create

confidence in the public.
 2. Benefits to Retailers
a) It help retailer to create awareness of their existence
and the types of products available with him.

b) It reduces risk on dead stock hence reduction of

overhead expenses.

c) Retailer is afraid of fluctuations in prices.

Advertising normally aims stabilization of price.

d) Looking at current demand of product, retailer can

easily estimate sales & accordingly plan the stock.
 3. Benefits to Customers
a) Advertising act as an information and educate the
customers.

b) Advertising stimulate demand thereby production and

hence reduces the cost per unit. This benefit goes to
customers.

c) Advertising goods generally bear quality and thus

consumers get quality matching to the price.

d) It makes it possible to sell direct to the consumers by mail

order like Asian Sky Shop. This reduces commission
payable to intermediaries and hence less price.
 Advertising Process
Advertising is both

1. A BUSINESS PROCESS
- it's part of what nearly every organization does in its
relations with its customers and

2. A COMMUNICATION PROCESS
- it's based on making contact with people and both
informing and persuading them, using words and
images in creative combinations, carried to the right
audience by the most appropriate media.
 The Communications Process

Sender Encoding Message Decoding Receiver

Media

Noise

Feedback Response

Major Parties :- Sender & Receiver

Major Communication Tools :- Message & Media
Major Communication functions :- Encoding, Decoding,
Response & Feedback
A Communication Process normally answers,

1. Who (Sender)
2. Says what (Message)
3. In what channel (Media)
4. To whom (Receiver)
5. With what effect (Feedback)
Major Decisions in Advertising ie 5 Ms
1st M – MISSION
Objectives Setting
Communication Objectives, Sales objectives

2nd M – MONEY
Budget Decision-
Affordable, meet objectives & percentage of sales

3rd M – MESSAGE
Message Decisions-
Message generation, evaluation & selection
Message Execution

4th M –MEDIA
Media Decision-
Reach, frequency, impact, media types

5th M – MEASUREMENT
Advertising Evaluation-
Communication impact, Sales impact
 Developing an Advertising
Campaign

Identify & Define Determine

Analyze the the
Target Advertising Advertising
Audience Objective Budget

Evaluate Create Develop

Advertising Execute the the
Effective- Campaign Advertising Media
ness Messages Plan
 Step 1:
Identifying and Analyzing Target Audiences
Target Audience Profile made on the basis of,

1. Demographic

2. Geographic

3. Psychographic

4. Behavioral

5. Media Usage
 Steps 2 & 3:
Define and Create Advertising Objective

Advertising objective must be:

1. Designed for a well defined target

market.

2. Be measurable and

3. Cover a specific time period.

 Adoption

Hierarchy Trial
of Effects
Evaluation
Model

Interest

Awareness
 Step 4:
Determining the Advertising Budget

 Approaches to Determining the Advertising

Appropriation

1. Percentage of sales

2. Competitive Parity
(Matching)

3. All you can afford

 Step 5:
Developing the Media Plan

Television
Radio
Magazine
Newspaper
Outdoor
 Broadcast Media Selection

Characteristics TELEVISION

Impact Very High

Product Demonstration Excellent
Package Identification Good
Short-Term Action Good
Cost per Audience Exposure Good
Production Cost, Economy Poor
Coupon Vehicle -----
Major Market Penetration Excellent
Characteristics RADIO
Impact High
Product Demonstration Poor
Package Identification Poor
Short-Term Action Excellent
Cost per Audience Exposure Excellent
Production Cost, Economy Excellent
Coupon Vehicle -----
Major Market Penetration Excellent
Characteristics MAGAZINE

Impact Low
Product Demonstration Fair
Package Identification Excellent
Short-Term Action Fair
Cost per Audience Exposure Fair
Production Cost, Economy Fair
Coupon Vehicle Good to Excellent
Major Market Penetration Fair
Characteristics NEWSPAPER
Impact Low
Product Demonstration Fair
Package Identification Good
Short-Term Action Excellent
Cost per Audience Exposure Good
Production Cost, Economy Fair
Coupon Vehicle Good
Major Market Penetration Excellent
Characteristics OUTDOOR
Impact Very Low
Product Demonstration Poor
Package Identification Good
Short-Term Action Fair
Cost per Audience Exposure Fair
Production Cost, Economy Poor
Coupon Vehicle -----
Major Market Penetration Good
 Step 6:
Creating the Advertising Message
The Message should be,

 Informative

 Psychological appeal

 Repeat assertion

 Dominance to competitors

 Symbolic association
 Step 7:
Executing the Campaign

1. Planning and Coordination

2. Detailed Schedules
3. Changes Made During the Campaign
 Step 8:
Evaluating the Campaign

Evaluating Advertising Effectiveness through

1. Pretests

2. Posttest

3. Recognition Test (appreciation, respect)

4. Recall Test (remind, remember)

 Case
Crazy Cold Drink was set up in 1979 as an subsidiary
of Vits Food Products.

M.D. Mr. Virani wanted to introduce new soft drink in

the market.

In market the cold drink like cola, orange, lemon were

famous but the consumers had perhaps become tired of
the same taste.

Hence Mr. Virani want to come up with new taste

called “Fruit Punch” a mixture of different fruit juices.
 He did a taste marketing with sample size of 300 in Pune.
The response was very favorable.

Hence he decided to introduce Fruit Punch in two cities

named Mumbai & Pune.

After watching response, he felt that he will be in better

position to offer the franchise in all over India.

Now it is essential that a very strong brand awareness must

be created to begin with.

Que 1: List out the various promotional decisions which the

company will have to take.
Que 2: Develop an advt. campaign for launching of the
product.